4 Bad Habits That Could Affect Your Money More Than Tariffs and Inflation
Written by
Chris Adam
Edited by
Amen Oyiboke
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The Trump administration’s discussions about tariffs and inflation have led many consumers to question how well they’re prepared for the future regarding their finances. After all, some experts have raised concerns that tariffs could lead to higher prices on products and services people use each day.
But there may be a way to protect personal finances that has little to do with moves by the White House.
GOBankingRates spoke with financial experts about some common bad habits that could affect your money more than tariffs or inflation.
Failing To Save and Invest Early
Bill Lyons, CEO of Griffin Funding, said one harmful habit is failing to save and invest early.
“Without a consistent savings plan, you’re missing out on the power of compound interest, which significantly grows wealth over time,” said Lyons. “Procrastinating on building an emergency fund or not setting aside money for retirement can also derail your financial security.”
Lyons said these habits are harmful because they limit your ability to cope with unexpected expenses and capitalize on long-term financial growth. To avoid this, develop a realistic budget that aligns with your income, prioritize savings and commit to setting aside money regularly, whether for emergencies, investments or retirement.
Increasing Spending as Income Grows
According to Brian Chasin, investing expert and chief financial officer at SOBA New Jersey, one of the most harmful habits is lifestyle inflation, increasing your spending as your income grows. While earning more should improve financial security, Chasin said, many people raise their standard of living instead of saving or investing the difference.
“This leads to missed wealth-building opportunities and greater vulnerability during economic downturns,” according to Chasin. “The fix is to establish a disciplined savings plan where a set percentage of any income increase is automatically directed toward long-term goals before adjusting discretionary spending.”
Relying Heavily on Consumer Debt
Chasin said another damaging habit is relying too heavily on consumer debt, particularly high-interest credit cards. Carrying revolving balances not only drains cash flow through interest payments but can also damage credit scores and create financial stress.
“The longer this continues, the harder it becomes to break the cycle,” said Chasin. “To avoid this, individuals should focus on budgeting for purchases, building emergency savings, and paying off balances in full each month.”
Lacking Financial Awareness
Another issue is neglecting to track spending or set financial goals. Without visibility into where money is going, it’s easy to overspend and under-save.
“This lack of awareness leads to reactive rather than intentional financial decisions,” Chasin said. “The solution is to use simple tools, budgeting apps, spending audits, or even a spreadsheet, to monitor income, expenses, and progress toward key financial milestones.”
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