5 Money Habits Keeping You Poor, According to John Liang
Written by
Choncé Maddox
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Jenna Klaverweiden
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Imagine losing thousands of dollars each year without even realizing it. That’s the trap John Liang described in his video on five money habits that keep people broke. In the video, he highlighted habits that many of us fall into without thinking.
Fortunately, as Liang explained, these can be turned into wealth-building opportunities with some practical changes. Here’s a breakdown of Liang’s five habits that can keep people poor and how to change them.
Impulse Spending
According to Liang, impulse buying is “as American as it gets.” According to Capital One Shopping, 89% of shoppers have made an impulse purchase, with 54% spending $100 or more.
Liang shared his personal struggle with browsing Slick Deals, a discount site he visited daily not because he needed anything but just to see what was on sale. Liang’s wake-up call: “If I’m spending to save, am I really saving? No,” he said.
Here are some ways to fix this habit, according to Liang.
- Use the 48-hour rule: Wait two full days before making any nonessential purchase. If it’s still on your mind after 48 hours and fits your budget, go for it. Otherwise, let it go.
- Create a budget: Liang explained that budgeting isn’t about restriction; it’s about direction. Give yourself permission to spend on fun things within limits.
Lifestyle Creep
As your income increases, it can be tempting to spend more on dinners out, new clothes and upgraded vacations. According to Synchrony, lifestyle creep can appear in your social life, wardrobe, commute, travels and household.
Liang said he remembers his first job out of college, when he felt on top of the world and started spending like it. The problem? His savings didn’t grow. “Everything else, all of my costs, had kept up with my income,” he explained.
To help you avoid lifestyle creep, he recommended setting financial goals early. Decide what you’re saving for before the raise hits your account. You can also automatically direct a percentage of your income to savings or retirement so it’s not there to tempt you.
Ignoring Investments
Liang said he was stunned that 48% of Americans don’t have any investment assets. “Any money that you have simply sitting in a checking account is literally the same as just lighting money on fire,” he explained, thanks to inflation eroding its value.
“Investing is dumb, dumb, dumb simple,” Liang said. He explained that people should forget day trading and fancy stocks. Instead, he advised buying index funds tracking the S&P 500 or the total market, investing consistently, and letting time work its magic.
You also shouldn’t leave free money on the table. He explained that you should take advantage of an employer match in your 401(k), as that is like a 100% return on your money.
Relying on Credit
Liang admitted it’s ironic he promotes credit card perks but also warns about how dangerous credit card debt can be. According to the Federal Reserve Bank of New York, credit card balances totaled $1.21 trillion in the second quarter of 2025, a 5.87% increase from a year ago.
Liang explained that he grew up watching his dad struggle with credit card debt, noting how it impacted his ability to get loans. Credit cards can be useful tools “if used correctly,” he said.
To change this habit, Liang said to commit to not making purchases when you don’t have the cash. Liang’s rule is clear: “No cash, no credit card.” If you are using a credit card, adopt the habit of paying more than the minimum payment each month. Making only the minimum payment turns your debt into a financial anchor.
Staying at the Wrong Job
Liang’s blunt take is that most people are at a job they probably shouldn’t be at. Whether it’s low pay, poor growth or simply being too comfortable, staying stuck can cost you.
“Your company is not really looking out for your financial future. They’re looking out for their financial future,” Liang said.
In the video, Liang shared a few tips to fix this habit:
- Do market research: Check Glassdoor, talk to industry peers and see what your skills are worth.
- Negotiate raises: A 2% to 3% raise during 5% to 6% inflation isn’t a raise at all. “You’re getting paid less money to do the same job every year,” Liang said.
- Network constantly: Build relationships with colleagues, mentors and peers who might help you later.
- Adopt a new mentality: “Your company owes you nothing,” Liang said. Stay ready to pivot.
These money habits may seem small, but they can cost you thousands over time. Whether it’s emotional spending, ignoring investments or staying too long in one job, each of these habits can be reversed as you build new habits that lead to more financial stability now and in the future.
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