Current data continues to bear out the fact that new year’s resolutions do not stick. In fact, of those who set financial resolutions at the beginning of each new year, statistics tell us that 64% have already given up on them by the end of January. Sadly, just 9% successfully stick with their resolutions throughout the whole year.

For the many we are fortunate to serve, the toughest financial resolution concerns bad money habits. Habits that impede financial progress. Being that we are already into the second month of 2026, now is as good a time as any to help the people we serve better understand their financial habits and stay on the right road to success. There are, however, numerous ways in which financial habits can get off track. Here are just a few to illustrate the point:

#1 – Living without a budget. People oftentimes feel they make enough money that they don’t feel it important to budget. In truth, few of us are really that wealthy. First things first; understand where the money is going each month

#2 – Spending more than one makes. Living beyond one’s means, living on margin, whatever you wish to call it; is a path towards digging a significant “debt-hole”. Today’s flashy material items can become the garage sale junk of 2030. Yet, the trend continues; a recent consumer finance report put out a statistic that just 52% of American households earn more money than they spend each year. My suspicion is this will continue to get worse.

#3 – Frivolous spending – Advertisers like to make us feel as if we have sudden needs; needs that can only be met with the purchase of a product. Understand what happens with frivolous spending. Think twice before spending impulsively.

#4 – Saving little or nothing – Good savers do things the right way; they build emergency funds, have money to invest and leave the stress of living paycheck-to-paycheck behind. Our incomparable Tom Wolff, a former NAIFA President who created Capital Needs Analysis said it best: there are two types of savers; the first spends his money and then invests whatever is left over, the second puts away a definite amount first and then spends what is left. The moral to this story? People in the first example usually work for people in the second. Sure there are occasional surprises but the example rings true in most situations.

#5 - Not using cash where appropriate. No one can deny that the world runs on credit but that doesn’t mean it is your only outlet for purchases. Try paying with cash and see if you gain greater control of your monthly cash flow.

#6 - Lending money to family and friends – Your client may have lent a few thousand to a sister or brother, a few hundred to an old buddy and so on. Generosity is a virtue but if your friends or relatives can’t learn to budget, why should you bail them out?

#7 – Gambling. Remember the days when people had to go to Las Vegas or Atlantic City to gamble or play slots? Today, behemoth casinos are as common as major airports and most metro areas seem to have one close by or within an hour’s drive of one. They are even located on Indian reservations today. Then again, if you don’t like smoke or crowds, you can always play the lottery or sports betting. There are all kinds of glamorous ways today to lose money while having fun. The bottom line: losing money is not fun -regardless of the smiling faces on casino billboards or hollow promises of “hitting the jackpot”.

#8 – Inadequate financial literacy – Is the financial world boring? Sadly to many it can be. The Wall Street Journal is not exactly Rolling Stone and The Economist is hardly light reading. You don’t have to start there, however great, readable and even entertaining websites filled with useful financial information abound. Reading an article each day could help you greatly increase your financial understanding if you feel it is lacking.

#9 - Not contributing to IRAs or workplace retirement plans – Even with all the complaints about 401(k)s and the low annual limits on traditional and Roth IRA contributions, these retirement savings vehicles offer you remarkable wealth-building opportunities. The earlier you contribute to them, the better. The more you put in, the more potential available for compounding of those assets you may realize.

#10 – Going it Alone. Those who plan for retirement without the help of professionals leave themselves open to abrupt, emotional investing mistakes and tax and estate planning oversights. Another common tendency is to vastly underestimate the amount of money needed in the future. Few people have the time to amass the knowledge and skillset possessed by a financial services professional with years of experience. Instead of flirting with trial and error, see a professional for good and balanced insights.

A Final Thought

Its tragic that our country’s current economic forecast has simply become an example of a huge pile of debt. A debt that will inevitably eat through the financial intestines of our country if left alone. The real question is, how much longer can we kick the financial can down the road before we discover that we have run out of road? Washington, D.C. are you listening?

Opinions expressed are those of the author. Information provided for this article is general in nature and not intended as specific financial advice. 

Ike S. Trotter is a well recognized career professional in the financial services industry. Located in Greenville, MS, he has been a member/volunteer for NAIFA since 1975 and a longtime recipient of the NAIFA Quality Award