6 financial habits that have been normalized but shouldn’t be

It’s wild how many “regular” money moves we accept without question. 

Maybe you’ve caught yourself thinking, “Well, everyone does it this way,” only to realize that what’s common isn’t always sensible. 

I’ve definitely been there—shrugging off bad financial decisions because they seemed perfectly normal at the time. 

Then I’d wonder why I was always stressed about my bank balance.

Here at Small Biz Technology, we’ve seen how certain patterns become ingrained. But if you peel back the layers, you’ll spot several behaviors that can drain your resources and leave you feeling stuck. 

Below are six of those habits I believe have been normalized but don’t really deserve the free pass they get.

1. Using credit cards like they’re free money

Look, credit cards can be an incredible tool if you’re able to pay off the balance each month. 

But somehow, we treat that line of credit as if it’s no big deal to carry a balance. 

It’s become so normalized to tap, swipe, or insert your card for everything under the sun—even if you don’t have a cent in checking. 

The narrative is, “I’ll pay it off later,” but as interest piles up, “later” can become a never-ending cycle.

Financial educator Dave Ramsey has noted that relying too heavily on credit leads to an expensive dependency that can sabotage long-term goals. 

It’s easy to keep charging everyday expenses while only making minimum payments, and before you know it, you’re chained to monthly bills that feel impossible to knock out. 

Take it from me: I once treated my credit card like a shopping assistant instead of a payment method. 

The shock came when I realized how much I was bleeding in interest over items I’d practically forgotten about. 

If there’s one thing I’d recommend, it’s to treat a credit card like cash—that you pay off immediately—rather than allowing debt to fester.

2. Living paycheck to paycheck without pause

This is one that gets a collective nod from almost everyone. 

We assume it’s normal to run our bank accounts close to zero by month’s end, even if we’re not financially strapped in the strictest sense. 

There was a period in my 20s where I was pulling in decent revenue from my first startup, but I was still living paycheck to paycheck simply because I didn’t track my spending. 

It didn’t feel wrong, because nearly everyone I knew did the same.

According to a 2022 survey by the Survey of Household Economics and Decisionmaking (SHED), roughly 38% of respondents couldn’t handle an unexpected $400 expense without borrowing or selling something. 

That stat is pretty telling.

The “hand-to-mouth” cycle has become so standard, we almost forget it’s avoidable. 

Building an emergency fund or even practicing a little budgeting goes a long way in creating a financial safety net. 

If you don’t have a plan for how you spend (and save) your income, you’re gambling with your own peace of mind.

3. Refinancing for lifestyle upgrades instead of real needs

I’ve mentioned this before, but it’s worth bringing up again because it’s so common: refinancing a mortgage or a car loan just to access more cash for discretionary spending. 

Now, there’s nothing inherently wrong with refinancing if it’s to secure a better rate or manage your finances more efficiently. 

But it’s the trend of using that extra wiggle room to fund a vacation or grab the latest gadget that’s problematic.

As personal finance guru Ramit Sethi has said, “Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t.” 

The catch? Make sure you can afford that extravagance without tacking on unnecessary debt. 

If you’re refinancing to clear high-interest obligations, that might be strategic. 

But if you’re rolling your debt into a mortgage just so you can splurge on a new entertainment system, you might be kicking a financial time bomb further down the road. 

Lower monthly payments look good now, but you’re extending your overall debt horizon—and possibly risking more in interest over the long haul.

4. Dismissing small expenses as “no biggie”

How often have you heard people say, “It’s only five bucks,” as they order yet another streaming subscription or fancy coffee drink? 

Meanwhile, those “small” indulgences can add up to hundreds of dollars a month. 

There was a time I’d sign up for every online service I could get my hands on, forgetting I was basically paying for memberships I hardly used. 

I justified it because each individual charge seemed so minor.

The old phrase “Watch the pennies and the dollars will take care of themselves” is cliché but rings true. 

Warren Buffett is known for a variation of this mindset: he’s famously cautious about seemingly trivial spending. 

It’s not that we need to deprive ourselves of life’s little pleasures, but we do need to be mindful. 

Those daily purchases can balloon into a significant figure over time, especially if they’re automatic or subscription-based. 

Sometimes it helps just to tally up a month’s worth of impulse buys for a cold, hard look at what’s trickling out of your pocket.

5. Financing everything because “why not?”

These days, you can set up a payment plan for almost anything: electronics, furniture, workout gear, even groceries. 

At first glance, it seems innocent to spread out costs over multiple installments, and sometimes it’s practical if it aligns with your budget. 

But the problem is it’s become so commonplace that we don’t blink twice at the fine print or the total interest we might be paying.

I realized the danger of this habit back when I tried financing a new living room set.

The monthly amount was small enough to feel insignificant—until I factored in interest rates, late fees, and the psychological toll of yet another bill to track each month. 

The process basically normalizes overspending because we’re telling ourselves the monthly payment is affordable, while ignoring the bigger picture. 

If something truly is a necessity that you need to pay off over time, fine. But financing things just because it’s an option can quickly turn into an expensive game of juggling multiple debts.

6. Spending money you haven’t earned yet

This one might not sound as common, but I’ve seen it all over the place, especially among entrepreneurs waiting for a deal to close. 

We anticipate future income and start allocating it in our minds—often pushing that boundary by making purchases ahead of actually getting paid. 

It’s easy to rationalize it: “I’ve got that project lined up and it’s going to bring in X amount, so I’m safe to spend.” 

But until that money is actually in your account, it doesn’t exist.

I’ve been guilty of that leap of faith a couple of times myself, back when I was confident a contract or business deal was guaranteed. 

Then, life happened—like delayed payments or a last-minute cancellation—and I was left scrambling to fill the gap. 

It’s a high-risk move that’s somehow treated as normal in certain circles. The adrenaline rush might be exciting, but it can set off a domino effect of financial stress. 

My rule now: I don’t commit to spending money I can’t currently see in my bank balance.

Wrapping up

These six habits might be normal, but they’re often the quiet saboteurs of our financial well-being. 

The truly tricky part is how subtle they are. We rarely question them because they’re baked into everyday life. 

Yet the end result for many of us is mounting debt, lingering stress, and an overall sense of being stuck.

The good news? Changing your approach doesn’t require a total life overhaul. 

Often, it’s about recognizing the pattern before it gains momentum. 

Maybe it’s limiting the number of credit lines you open or taking a second look at your monthly subscriptions. Or deciding you won’t finance items that aren’t legitimate needs. 

Each step can create a ripple effect that strengthens your financial future.

It may feel a bit daunting at first—old habits can be stubborn. But every time you choose to break free from these so-called “normal” ways of handling money, you’re reclaiming your own financial stability and peace of mind. 

And that’s worth more than any quick fix or shiny new gadget.

Until next time, friends.