You’re probably broke if you always say ‘yes’ to these 5 crucial things (and it doesn’t really matter how much money you make)

Meanwhile, a Harris Poll found that more than half of six-figure earners would only feel financially secure if their income doubled, and three-quarters had used a credit card because they ran out of cash recently. (2)

In other words, you can’t outearn bad spending habits. And if you’re saying “yes” to any of the crucial things listed below, you’re probably on a path to financial insecurity as well.

1. Financial assistance to friends and family

Helping friends and family with their financial struggles feels noble, but it can quickly derail your own finances. Unfortunately, it’s difficult to say “no” to your loved ones.

Nearly six in 10 parents admit to providing some financial assistance to their adult children, according to Pew Research. (3)

Moreover, according to a 2025 survey by JG Wentworth, 53% of adults say they have lent money to either a friend or family member at least once, and 48.3% would ask a family member for money with no expectation to pay it back. (4)

Put simply, lending money to your loved ones is nearly on par with tossing cash into a black hole. That’s not to say you should refuse all requests for financial help. However, if you’re saying “yes” too often, you’re putting yourself in a financially vulnerable position.

2. Every social invitation

The costs of dining out, attending concerts and going on vacation have increased rapidly in recent years. U.S. adults currently spend $2,841 per year on restaurant and takeout meals, according to CNET (5), while the average household annual entertainment budget is $3,636, according to Ramsey Solutions. (6) Add in occasional expenses like birthdays and anniversaries, and you can see why an active social life is an expensive luxury.

You don’t need to abandon all opportunities to socialize and live like a recluse, but occasionally saying “no” could help you accumulate meaningful savings over time.

3. High-interest credit and loans

High-income individuals have greater access to credit, and many of them take full advantage of this.

According to a 2025 survey by PYMNTS, high-earning shoppers are 40% more likely to rely on buy-now-pay-later programs than their lower-earning peers. (7) And, according to BHG, 62% of individuals earning more than $300,000 a year are struggling with credit card debt. (8)

If you’re in this cohort, resist the temptation to max out all the credit available to you. Accumulating multiple monthly interest payments can quickly drain even a high six-figure salary.

4. Big-ticket impulse purchases

The average consumer spends $282 a month on impulse purchases, according to Capital One. (9)

Most impulse purchases are relatively small items, like shoes, gadgets or accessories. If you’re making big-ticket impulse purchases, that’s a red flag.

Buying a new appliance or renovating the kitchen on a whim might not seem like a big deal, but it can have far-reaching consequences for your financial future.

A practical way to limit impulse spending is to establish a personal spending cap. For example, you could impose a mandatory seven-day pause before proceeding with any purchase over $1,000.

During that week, you could research prices, compare alternatives and confirm you actually need the article you planned to buy.

5. Homes you can’t afford

Buying a home, especially if it’s your first, is an emotionally-charged decision. And because emotions are running high, it’s easy to buy a home that is either too big or too expensive for your budget.