By Elliot Pepper, CFP®, CPA | Northbrook Financial
You know the drill: Spend less than you earn. Save for a rainy day. Invest for the future. And yet, despite this seemingly simple formula, most Americans live paycheck to paycheck, struggle with debt, and feel stressed about money.
So what gives?
In this blog, we’re digging into the real reasons why so many people fall short with personal finance—and more importantly, how you can flip the script and start making real progress.
💡 The Real Problem Isn’t Math—It’s Behavior
You don’t need a Ph.D. in economics to understand personal finance basics. But what trips most people up isn’t the math. It’s the mindset, habits, and systems (or lack thereof) that govern our financial behavior.
Consider this:
– Over 60% of Americans can’t cover a $1,000 emergency without borrowing.
– Credit card debt just hit a record high, despite rising interest rates.
– Two-thirds of millennials say they lose sleep over money.
These stats don’t reflect a lack of intelligence. They reflect a lack of strategy, structure, and—frankly—support.
🚧 Common Reasons People Fail at Money
Let’s break down five of the biggest reasons most people struggle with money:
No Clear Goals
It’s hard to win a game if you don’t know what you’re playing for. Many people haven’t taken the time to define what “financial success” looks like for them. Without clear goals, your money just disappears.
Fix it: Set SMART financial goals—Specific, Measurable, Achievable, Relevant, and Time-bound. Want to buy a house in 3 years? Save $40K for a down payment? Great. Now we’ve got something to work with.
Lack of Systems
Relying on willpower to manage your money is like trying to steer a car with your feet. You need systems—automated savings, clear spending plans, and scheduled reviews—to keep you on track.
Fix it: Automate your financial life. Set up recurring transfers to savings, schedule time monthly to review your finances, and use apps or tools that give you visibility without complexity.
Emotional Spending
Money is deeply emotional. Stress, boredom, guilt, and even joy can lead to impulsive purchases or avoidance behavior. Left unchecked, these emotional habits can sabotage your goals.
Fix it: Track your spending and reflect on the why behind your purchases. Are you buying to feel better, impress others, or reward yourself? Build awareness—and then healthier alternatives.
Lifestyle Creep
You get a raise. You move to a nicer place. You subscribe to another streaming service. Before you know it, you’re still broke—but now with better furniture.
Fix it: Practice conscious upgrading. When your income increases, commit a portion of it to savings and investments before expanding your lifestyle.
Financial Illiteracy
Many people simply weren’t taught how money works—how interest compounds, how taxes eat into earnings, or how debt can snowball.
Fix it: Keep reading this blog. (Seriously.) Make learning about personal finance part of your routine. Knowledge truly is financial power.
🧠 Winning the Money Game: What Actually Works
Winning with money doesn’t mean becoming a millionaire overnight or living like a monk. It means building habits, systems, and mindsets that move you toward your version of financial freedom.
Here’s what works for ourselves, our clients, and can work for you too:
✅ 1. Start Small and Build Consistency
Progress is more about momentum than magnitude. Can’t save $500 a month? Start with $20. The habit matters more than the amount in the beginning.
✅ 2. Automate Everything You Can
The less you have to rely on memory or discipline, the better. Automatic savings, bill pay, and investing make success the default.
✅ 3. Have a System for Reviewing
Financial success isn’t set-it-and-forget-it. Build in a rhythm—monthly check-ins, quarterly goal reviews, and annual planning sessions.
✅ 4. Get Accountability
Just like having a workout buddy helps you hit the gym, having a financial advisor or a trusted partner helps you stay the course.
✅ 5. Celebrate Progress
Too often we wait until we’ve “made it” to feel good. Instead, recognize the small wins—paying off a credit card, hitting your savings target, or sticking to your budget for a month.
✨ Real Wealth Is About Freedom
At its core, money is just a tool—a resource you can use to buy options, reduce stress, and create a life aligned with your values.
Financial wellness isn’t about perfection. It’s about intentionality. When you take control of your financial story—one decision at a time—you win.
🔧 Your Common Cents Action Plan:
Here’s your quick-start checklist to start turning the tide:
– ✅ Set one clear short-term and one long-term financial goal.
– ✅ Automate a small transfer to savings—even $10/week.
– ✅ Track your spending for the next 7 days. Look for emotional patterns.
– ✅ Schedule a 30-minute money check-in on your calendar this month.
Need Help Getting Started?
At Northbrook Financial, we help individuals and families build clarity and confidence around their money through smart planning, personalized strategies, and a whole lot of Common Cents.
The information contained herein is intended to be used for educational purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. The content is not intended to be legal, tax or financial advice. Please consult a legal, tax or financial professional for information specific to your individual situation.
This content not reviewed by FINRA
Northbrook Financial is an Investment Adviser registered with the State of Maryland. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. Please contact us at 410-941-9709 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate or modify any restrictions on the management of the account. Our current disclosure brochure, Form ADV Part 2, is available upon request, and on our website https://www.northbrookfinancial.com