I Asked ChatGPT Which Habits Keep People Broke (and How To Change Them)

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Most people don’t stay broke because of one bad financial decision. Instead, it usually comes down to small habits that repeat month after month, some of which are easy to miss.

To help you sort it out, GOBankingRates asked ChatGPT which habits tend to hurt finances and how to change them.

Spending First and Saving Later

When people treat saving as an afterthought, it can backfire. ChatGPT suggested automating a small transfer on payday, even if it’s $25, to make savings a fixed expense. Over time, it said, the consistency will pay off. 

Automating savings is a good idea, but for faster progress, increase the amount at least once a year. Also consider saving part of any bonuses or windfalls you receive. 

Carrying Credit Card Balances Month After Month

Credit card interest can drain your bank account every month, and making only the minimum payments can keep balances active for years. 

ChatGPT suggested focusing on knocking out one balance at a time. It also recommended avoiding new charges while paying down balances because adding debt can slow progress. 

Using Monthly Payments To Justify Purchases

Although it can be tempting to commit to low monthly payments to afford the items you want, financing is expensive.

Before financing a purchase, ChatGPT said to consider the total cost, not just the monthly payment. Next, ask yourself whether the purchase would still feel reasonable if financing were out of the question. If not, it likely doesn’t fit your budget. Finally, ChatGPT recommended giving yourself a cooling-off period of 48 hours to avoid impulse buying. 

Lifestyle Creep After Income Increases

When income rises, spending often rises just as fast. This is called lifestyle creep. 

To avoid it, ChatGPT recommended increasing savings or debt payments when income goes up. It said to treat raises as a chance to improve margins, not lifestyle, and advised keeping fixed expenses, like car payments and mortgages, stable for as long as possible.

Avoiding Money Because It Feels Overwhelming

Ignoring the details of your finances can turn small issues into big ones. However, familiarity can reduce anxiety over time, per ChatGPT.

It suggested scheduling one weekly money check-in and tracking only major categories at first to avoid being overwhelmed. Then, as you become more comfortable with managing money, build a more detailed budget. 

Paying for Convenience Too Often

Convenience spending, such as food delivery, may feel harmless. However, repeating it often can add up. 

Pick specific categories where convenience is worth it and cut back on others instead of trying to eliminate these expenses entirely, per ChatGPT. This strategy can keep spending realistic. 

Not Adjusting Habits as Life Changes

Spending patterns need to be adjusted when income, family size or other priorities change. 

ChatGPT suggested reviewing expenses after any major life changes and dropping spending habits that no longer serve your current goals. For example, if your adult child has a full-time job but you’re still paying for some of their expenses, it makes sense to talk about shifting the expenses to their plate. 

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