Do you ever check your bank balance at the end of the month and wonder, “where did all my money go?” Even if you’re earning a decent income and doing your best to stay on top of your finances, it can sometimes feel like you’re running hard without getting very far.

Of course, there are things outside our control, and inflation, interest rates and global events can all put their thumb on the scale in ways that can be difficult to counteract. But sometimes the culprits are those small behaviours of our own that we give very little thought to.

Left unchecked, these can slow your progress towards goals like paying off debt or buying a home, and gradually undermine your long-term security. Here are some common money habits that may be holding you back.

Lifestyle inflation

Received a pay rise recently? Few would fault you for wanting to celebrate, but you’ll need to be careful that higher income isn’t completely erased by needlessly high spending.

Often that takes the form of upgrades to cars or tech, which can be wasteful if your current model still serves its purpose perfectly well. Before upgrading, ask yourself whether the purchase meets a genuine need or just satisfies a temporary desire for something new.

And while you should be able to enjoy the rewards of your hard work, try to direct at least part of each pay rise towards savings, investments or debt reduction. That way your income and your financial progress aren’t moving in opposite directions over time.

Excessive cash holdings

Having a cash buffer is an important part of any financial plan, but if you’re holding excessively large amounts of cash without a clear purpose, you might be missing out on opportunities elsewhere.

That’s because while cash can provide security and easy access, it typically delivers lower returns than other growth assets. And if inflation is tracking higher than your bank’s interest rate, your money’s purchasing power is essentially declining.

So if you have an emergency fund in place and enough cash on hand to cover your short-term needs, investing any surplus could give your money a better chance to grow and outpace inflation.

Only making minimum repayments

Making the minimum repayment on your credit card might keep your lender out of your hair, but it’s worth remembering that it’s designed to cover only a small portion of what you owe. Your remaining balance continues to accrue interest, meaning you could end up paying significantly more over time.

If you can, aim to pay off your credit card balance in full each month. And if that’s not realistic at the moment, paying even a little more than the minimum can still reduce the interest you pay and help you become debt-free sooner.

BNPL when used irresponsibly

Buy Now, Pay Later services can be convenient when managed sensibly; the challenge is that splitting purchases into smaller instalments often makes it feel like you’re spending less than you actually are. Tack on another BNPL purchase, and another, and it can get quite hard to stay on top of your other financial priorities.

So before turning to BNPL, make an effort to understand what you currently owe and how adding another commitment might impact your cash flow. You might be better off saving up and making the purchase with cash, or even giving it a miss altogether.

Subscription creep

Streaming services, fitness apps, cloud storage and software subscriptions can seem fairly inexpensive on their own, but the combined cost can amount to hundreds or even thousands of dollars each year.

Try to conduct a periodic review of your subscriptions and see if there are any you’re willing to say goodbye to. If you haven’t been keeping track of them (or regularly checking your bank transactions), you might find you’re paying for services you had completely forgotten about, so your cull might not even affect your lifestyle too much.

Status (or social media-driven) spending

You’ve probably felt that twinge of envy when scrolling through your social media feed. While this is normal, what matters is how you let it affect you. If constant exposure to images of luxury holidays, renovated homes and designer products stirs up feelings of inadequacy and the first remedy you reach for is online shopping, it might be worth limiting your social media usage.

You don’t necessarily need to delete your social media accounts, but it might be worth unfollowing pages that leave you feeling like you’re falling behind or even setting daily screen time limits.

Impulse buying

Spontaneous purchases, emotional spending after a stressful day, signing up for deals without fully considering the long-term cost, and panic-selling during a market downturn – these are all examples of impulsivity at work.

The challenge is that short-term decisions can have long-term consequences. To help rein in your impulsivity, try setting up small barriers, like waiting 24 hours before making a purchase or changing your internet browser settings so your payment details don’t automatically fill in at checkout.

In the end, building wealth rarely comes down to a single decision. Rather, it’s shaped by the choices you make consistently over time. That means embracing habits that move you closer to your goals just as much as avoiding the ones that hold you back.

Start budgeting early

The sooner you start planning, the easier it will be to stay on track. So before you hit the shops, take a moment to map out all your expected expenses (that obviously includes presents but don’t forget food, decorations and travel too). Once you have a rough figure, check that it fits comfortably within your budget.

To help make things more manageable, consider setting up a separate Christmas fund in the months leading up to December and transferring a small amount each pay cycle. By spreading costs out over time, you’ll avoid the pressure of covering everything in one hit.

Stick with cash

Here’s a strategy for staying disciplined that’s simple, effective, and can be used throughout the year: when shopping in person, withdraw what you’ve budgeted and use that as your spending limit. Once the money’s gone, that’s your cue to stop.

When we shop online or pay via card, it often doesn’t register that we’re parting with something. But cash is tangible, and watching notes leave your wallet makes it much easier to gauge how quickly you’re spending and when it’s time to slow down.

Be wary of Buy Now Pay Later

Buy Now Pay Later (BNPL) services can be convenient, but they can leave your finances in tatters if you’re not careful. That’s because BNPL spreads repayments over time, oftentimes concealing how quickly your purchases are adding up.

If you do choose to use BNPL, try to limit it to things you’ve already budgeted for, and never as a way to buy more than you can afford. Make sure you understand the terms and conditions, and set up reminders or automatic payments so you can pay off the balance without incurring late fees.

Shop early and smart

Leaving your gift shopping to the last minute almost always leads to overspending. You’re more likely to panic buy or pay premium prices for whatever’s left on the shelves. Instead, be on the lookout in advance and take advantage of the major pre-Christmas sales.

Sales like Black Friday and Cyber Monday, which fall in late November, are great opportunities to score some discounts on big-ticket items. Just be sure to research prices ahead of time so you can spot genuine bargains.

Get your family to chip in

Hosting Christmas lunch or dinner is a great opportunity to show off your culinary chops. But all the preparation can be time-consuming, stressful, and immensely draining on your wallet.

To lighten the load, see if you can make it a team effort. Ask guests to bring a dish, contribute to drinks, or help with decorations. Not only can it make Christmas more relaxed and enjoyable for everyone, it reinforces the communal aspect that’s at the heart of the day.