You know how annoying it is when you become an adult and realise your parents really were right and their advice was damn near perfect! I hadn’t been a financial adviser long before I started to see this universal truth in my work. I was lucky enough to have amazing parents, and as a bonus, my mum was a bit of a financial whizz. One of her favourite sayings was: “It’s not what you earn that makes you rich or poor. It’s what you spend that matters.”
I see this time and time again with my clients. Once you have secured all of your and your family’s material needs, your feeling of financial security in the future is intrinsically linked to your spending habits, rather than your increased earnings each year.
What are the 5 expenditure habits to avoid?
1. Spending to impress others
The pressures to outwardly ‘look’ like it’s all going marvellously can be immense. Whether it’s the upgraded car, the designer watch, the high‑end holiday or the “perfect” home renovation, it’s easy to fall into the trap of spending to signal achievement.
This pressure can be amplified when colleagues and peers appear to be doing well financially. Social media adds another layer, showcasing curated lifestyles that rarely reflect reality.
Why this habit is harmful:
Spending to impress others rarely brings lasting satisfaction. It leads to lifestyle inflation (the gradual increase in spending as income rises), which can quietly erode your ability to save, invest and build long‑term security. The danger is that lifestyle inflation feels normal, even deserved, but it locks you into high monthly outgoings that become difficult to reduce.
A healthier approach:
Spend in ways that genuinely improve your life, not in ways that simply look good from the outside. True financial confidence comes from stability, not status symbols.
2. Confusing wants with needs
Working long hours and facing high levels of stress can make convenience spending feel justified and inevitable. But the line between “need” and “want” can blur quickly.
Examples include:
- Upgrading technology that still works perfectly well.
- Relying heavily on takeaway meals or premium delivery services.
- Buying new equipment, clothing or gadgets because they promise efficiency or comfort.
- Treating every stressful week with a “reward” purchase.
Individually, these decisions seem harmless. Collectively, they can drain thousands of pounds a year without adding meaningful value to your life.
Why this habit is harmful:
Small, repeated discretionary purchases accumulate quietly. Because they don’t feel extravagant and often go unnoticed, yet they can significantly reduce your ability to save for major goals such as buying a practice, funding children’s education or building a retirement pot.
A healthier approach:
Pause before purchasing. Ask whether the item solves a real problem or simply offers a momentary boost. Awareness alone can transform your spending habits.
3. Letting emotions drive purchases
Emotional spending is one of the most common and costly financial behaviours.
Emotional purchases often feel justified in the moment, but they rarely align with long‑term priorities. Whether it’s impulsive online shopping after a difficult shift or booking an expensive holiday to “escape,” emotional spending solves a feeling, not a problem.
Why this habit is harmful:
Emotional purchases tend to be reactive rather than intentional. They provide short‑term relief and a dopamine hit, but often lead to long‑term regret, clutter or financial strain. Over time, this pattern can become a default coping mechanism.
A healthier approach:
Create a cooling‑off period for non‑essential purchases. I’m a great believer in giving myself a few days to ponder these types of purchases, if not a week.
4. Ignoring the future cost of today’s spending
Every pound spent today is a pound that cannot grow for tomorrow.
Training intensity and moving locations in your early career may distract you from the need to financially plan, meaning you could have started saving and investing later than peers in other industries. This could then be compounded by excessive, unnecessary spending now, rather than the deferred gratification of saving for the future.
Why this habit is harmful:
Money not saved or invested loses the chance to compound. Over the decades, the difference can be enormous. If you delay saving until your 30s or 40s, you will need to contribute significantly more to achieve the same retirement outcome as someone who started earlier. However, remember that the best time to start a good habit is yesterday. The 2nd best time is today. It’s not too late, but don’t procrastinate any longer.
A healthier approach:
View spending decisions through a long‑term lens. Ask: “What am I giving up in the future by spending this today?” This mindset shift alone can dramatically improve financial outcomes.
5. Spending without a system
The most damaging spending habit isn’t a specific behaviour. It’s the absence of a plan. Many high‑earning professionals assume that a high income will naturally translate into financial security. Unfortunately, this isn’t true.
Without a system, money tends to “disappear.” Even if your earnings are excellent, you can feel financially stretched if they don’t track spending, automate saving or allocate money intentionally.
Why this habit is harmful:
Lack of structure leads to uncertainty, stress and missed opportunities. It also makes it difficult to prepare for major financial milestones such as buying a practice, funding private school fees or planning for retirement.
A healthier approach:
Create a simple, sustainable system. Automate savings, review spending regularly, and align your financial decisions with your long‑term goals. A system doesn’t restrict you. They bring power and free you from worry.
Financial health is a crucial part of overall well-being. By avoiding these five spending habits and replacing them with intentional, value‑driven decisions, you can build a future that offers security, flexibility and peace of mind.
Your financial life should support the life you want to live, not limit it. A few thoughtful changes today can transform your long‑term trajectory.
The concepts and suggestions in this article must not be viewed as advice. As always, we recommend you approach a Financial Adviser who will take your circumstances into full consideration before providing advice.