Blog,  Digital Nomad

6 Spending Habits That Are Making You Go Broke

I’ll be the first to admit that changing my spending habits changed my life! 

Proper money management is all about how you spend and allocate your money, so it should be no surprise that spending without budgeting and planning will make you go broke. 

Once you control your spending habits you’re basically controlling your financial future, so I highly recommend taking notes as you read this post if you’re serious about your path to financial freedom. 

Keep in mind though that no matter how much you learn, it’s still up to you to take action and make a difference.

If you really want to learn how to improve your financial future, then you have to overcome the spending habits that are making you go broke.

Some of these tips might be hard for you to come to terms with, but I promise you that you will thank yourself in the future.


Eating out allocates for huge amounts of everyday spending, “The average American spends $232 per month eating meals prepared outside the home.”

That’ $2,784 per year eating outside the home! Imagine what you could do with an extra 2K a year. 

I honestly don’t believe eating out is a necessity, so if you can learn how to cut back on that you can have a lot more freedom with your money. 

Try getting creative in the kitchen and start whipping up some gourmet lunches! 

Not only is making healthier well-balanced meals a better option but making your lunch will also save you a lot of money so that you can reach your financial goals faster. 

You don’t have to be totally frugal all the time though, enjoy eating out occasionally and treat yourself to a nice meal here and there.


Alcohol is such a normal part of most societies, it’s not uncommon for people to enjoy a glass of wine with dinner or take a few shots while partying on the weekend. 

What a lot of people fail to realize is that this adds up to a large chunk of spending over time. If you spend a minimum of $20 a week on alcohol, you’re looking at $960 per year. 

Again, imagine what you could do with an extra $500-$1000 every year. That’s easily 5K over a couple of years that could be invested instead. 

Try cutting back your weekly alcohol consumption, you can have no alcohol weeks or even months if you’re like me and don’t drink much!

Alcohol isn’t a need, so it should be something you’re willing to cut back on if you’re wondering where all of your money is going.  


I don’t have a car but from what I’ve observed from friends and family it is a huge financial burden. 

Yes, a vehicle gets you from point A to point B but carpooling or taking public transportation might be a better option if you realize that having a car is becoming unaffordable. 

The two easiest solutions when it comes to affordable transportation is to buy a car in cash or take public transportation. 

Buying a car in cash will save you the headaches of making car payments and there’s absolutely nothing wrong with buying a car that you can afford, however, if you absolutely have to finance a vehicle make sure that it’s less than 15% of your income. 


The fear of missing out or being left out by peers can put strong pressure on your wallet. 

If you’re going out for expensive weekend events with friends or making purchases to fit in with others you will almost certainly go broke.  

I suggest coming to terms with your personal goals and setting boundaries in place that will allow you to reach them. 

This requires some serious reflection on what you want in life and what you’re willing to do to accomplish that. 

There’s nothing wrong with going out and having a good time but it’s important to have a balance, especially if you have big financial goals. 

As a budget traveller and frugal living expert, I personally am all about free events and saving money in every possible way. 

Read “6 Tips For Managing Your Money Better”

  1. RENT 

Everyone needs a place to live but not everyone needs to live in a place that is way above their means. 

Your rent should be no more than 30% of your income, so if you make $4000 a month your rent should be $1200 or less.

I know in some cities like Toronto that is nearly impossible, but if you can get creative with how to keep your rent at the 30% rate you can really set yourself up for a secure financial future. 

If you can’t find rent in that range then you’ll have to get really serious about reducing your monthly costs in other ways. 

One solution could be to find a roommate or split the costs with a partner. 

Another option for Digital Nomads and long term travellers is house-sitting or doing work-exchanges for free accommodation. 

Check out my PDF 19 Ways To Travel The World For Free!

The last option is to simply relocate somewhere that the cost of living is low and the quality of living high!


You most likely don’t even realize that you spend more than you earn if you constantly make purchases on your credit cards. 

I’ll be honest when I first started travelling and becoming a travel blogger I shamelessly put travel expenses on credit cards when I didn’t have enough cash. 

Although YOLO, I am paying back that debt right now and could have totally avoided making such silly decisions. 

I was fully aware that I was spending money I didn’t have which is actually a good thing in a way but if you aren’t even aware you could be in for a long-term disaster. 

Instead of spending money you do not have, try saving up for items that you want to purchase and only buy it when you have the money in cash! 

Cancel your credit cards immediately if you’re not responsible enough to only spend money you have. 

However, if you are responsible with credit cards I suggest looking into a travel rewards card. 

I signed up for a travel rewards credit card that gives me points for spending, once I accumulate enough points I can use it for flights or other travel expenses. 

In the end, it’s really up to you to take some of this advice and apply it in your everyday life. 

It takes time to create new habits but it can do wonders for you if you’re willing to put in the work. 

I hope that you enjoyed this read and if you did feel free to share it with your friends and followers! 

Also, if you’re interested in supporting the Black Lives Matter Movement then I encourage you to make a purchase from the BLM Tote Bag Collection in my Etsy shop.

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