I’m pretty sure financial stress is weighing down on most of us. Rising living costs, stagnant wages, and economic uncertainty are making it increasingly difficult for people to maintain financial stability. 67% of Americans are still living paycheck to paycheck, struggling to break the cycle of just “getting by”.
Meanwhile, only 36% of households have a long-term financial plan—often because they don’t believe they can afford to make one. According to financial expert Suze Orman, the key to financial stability often lies in recognizing personal behaviors and decisions that hinder progress.
Her advice resonates more than ever in 2025, as millions of Americans struggle to make ends meet. Today, we’re sharing 13 reasons why you might be falling short on money based on Orman’s insights, along with actionable advice to break free and build a better financial future.
You Don’t Track Where Your Money Goes
Most people believe they know where their money is being spent, but a deeper look often paints a different picture. Undetected spending on dining out, unused subscriptions, and impulse purchases are common culprits.
Suze Says: “Get honest about your spending. You can’t protect your money if you don’t know where it’s going.” 44% of Americans are cutting back on non-essentials, yet overspending on dining out and unused subscriptions remains widespread.
What to Do: Start tracking every expense for one month. Use a budgeting app or a spreadsheet to categorize your spending. A detailed understanding of your finances can help you identify where adjustments are needed.
You Don’t Have a Sufficient Emergency Fund
An emergency fund serves as a safety net for unexpected expenses, such as medical bills or car repairs. Yet, many people fail to prioritize building one.
Suze Says: “Your number one priority is to absolutely build that up next.”
A 2025 study finds that only 29% of Americans feel hopeful about their financial future, largely due to insufficient emergency savings. Aim to save 8–12 months’ worth of must-pay expenses in a high-yield savings account. Start small by automating a portion of your paycheck to go directly into this account.
You’re Carrying High-Interest Debt
Credit card debt remains one of the most expensive mistakes households can make, with average interest rates exceeding 20% in 2025.
Suze Says: “There is no good time to carry expensive credit card debt.”
The average credit card balance has risen to $6,501, and 63% of cardholders carry a balance from month to month. Focus on paying off high-interest debts first using the debt avalanche method. If your balances feel overwhelming, consider consolidating your debt into a lower-interest loan.
You Confuse Wants With Needs
Overspending often stems from mistaking lifestyle upgrades for necessities. “For you to have money, you have to learn to live below your means, but within your needs.” Says Suze.
Dining out remains the #1 recurring expense that undermines budgets, despite rising grocery prices.
What to Do: Clearly distinguish between your needs and your wants, and set boundaries. Prioritize your essentials first and wait 48 hours before making any non-essential purchase.
You Allow Fear or Emotion to Drive Financial Decisions
Fear, shame, and stress are often the root causes of poor financial decisions. These emotions can lead to impulsive actions, such as pulling out investments at the wrong time or engaging in emotional spending.
You can’t build wealth when emotional barriers stop you from making sound decisions. Only 29% of Americans feel optimistic about their finances in 2025, down from 60% in 2024. Rising anxiety is fueling emotional choices.
What to Do: Practice mindfulness in financial decision-making. Take time to separate emotions from logic by consulting a trusted financial advisor.
You Don’t Automate Savings or Bill Payments
Those who automate their finances avoid the risk of missed payments or forgetting to save consistently. Automate recurring bills and savings from each paycheck for stress-free money management. Americans who automate their bills save an average of 25% more.
What to Do: Set up direct deposits for savings and automate bill payments through your bank to ensure consistent meeting of obligations.
You Don’t Cut Unnecessary Expenses
Recurring expenses, such as streaming services or utilities, often creep higher without notice. Regular reviews can save you significant amounts of money. Reduce every one of your monthly utility bills by 10%.
Households that review and trim recurring expenses save an average of $1,200 annually. Review monthly statements to identify and eliminate any unnecessary costs. Then, make calls to providers to negotiate better rates.
You Rely on Credit Cards for Everyday Spending
Overrelying on credit cards for daily purchases can lead to mounting debt that becomes increasingly difficult to escape. The sooner you stop racking up debt, the sooner you’ll have financial peace. Over 37% of Americans use credit cards for routine spending, with 21% owing more than $10,000.
What to Do: Switch to using cash or debit cards until your financial habits are balanced.
You Don’t Invest Early or Consistently
Keeping money out of the market limits your ability to grow wealth through compounding.
Suze Says: “In your 20s and 30s, keep 80% in stocks, 20% in bonds; adjust as you age.”
Despite the stock market surging nearly 30% in the past year, roughly 48% of Americans hold no investment assets at all, according to a 2024 Janus Henderson report. Set aside a fixed amount monthly for index funds or ETFs to start growing your contributions today.
You Fail to Diversify Your Income
Multiple income streams were once niceties, but in today’s economy, they’re essential.
Suze Says: “The more income you generate, the faster you can pay down debt, save, and invest.”
According to data from Side Hustle Nation and Hostinger for 2025, 37% of U.S. adults now report having a side hustle, up from 28% in 2022. That’s nearly 80 million people supplementing their income through freelance gigs, online businesses, or part-time work. Identify skills you can monetize outside your primary job, such as tutoring.
You Don’t Review or Rebalance Your Portfolio
Failing to keep track of asset allocations can leave your portfolio riskier than intended. Review your portfolio… if you’ve been hands-off, your original 60% allocation to stocks may have drifted to 70% or more, exposing you to more risk than you intended.
Following the Post-stock market growth in 2025, many portfolios are over-concentrated in stocks. Schedule quarterly reviews to maintain balanced diversification across your portfolio.
You Ignore Retirement Planning
Procrastinating on retirement contributions limits the power of compounding interest.
What Suze Says: “Maximize employer matches, contribute to IRAs, and begin compounding earlier.”
According to the 2025 Transamerica Retirement Survey, only 17% of American workers expect to retire at the traditional retirement age of 65. Start contributing as much as possible to retirement accounts, such as 401(k)s and Roth IRAs.
You Don’t Seek Fiduciary Advice
Many individuals assume their advisors have their best interests in mind, but non-fiduciaries are under no legal obligation to prioritize clients’ needs. According to recent industry surveys and reporting from OregonLive, most financial advisors are not fiduciaries, meaning they’re not legally required to act in the client’s best interest.
Yet only 28% of Americans can confidently say whether their advisor is a fiduciary, leaving many vulnerable to biased recommendations that may benefit the advisor more than the client. Request a written declaration and verify your advisor’s fiduciary status to ensure sound financial guidance.
