Hey friend,
After reviewing the real-life finances of over 50 people for my Fix My Finances series on YouTube, I’ve started to notice patterns. These are smart, hardworking people, many of whom earn a decent income but still feel stuck, stressed, or live paycheck to paycheck.
Today, I want to break down 4 of the most common money traps I keep seeing, and how you can avoid falling into them (or climb out if you already have).
Let’s get into it 👇🏾
1️⃣ Income isn’t the problem.
It’s easy to assume earning more will fix your finances. But I’ve seen people on £2,500/month and people on £5,000/month both end up in the same place: broke by week three 😅.
The truth is, more money without a plan just means more expensive mistakes.
The people who make progress with their finances? They don’t wait to “earn more”, they get intentional with whatever they currently earn.
They:
Automate savings before touching a penny
Set weekly or monthly spending limits
Have a payday routine that includes reviewing goals, debts, and expenses
✅ My tip: Build a system, not vibes. No matter what you earn, you need to know - to the pound, where your money is going.
🧾 Need help structuring your money? Grab my Income & Expense Tracker to get started
2️⃣ Keeping up appearances is draining your account.
From driving cars with £500 monthly finance payments
To sending hundreds home monthly, even though there’s barely £50 in savings…
To that designer bag on Klarna “because I deserve it after the week I’ve had”
A lot of people are trying to look like they’re doing well, even when they’re drowning.
Yes, generosity is beautiful - but if it’s not in your budget, it’s not self-care, status, or love. It’s financial self-sabotage.
✅ My tip: Before you swipe or send money, ask yourself: is this helping me feel secure, or just helping me look secure? Peace of mind > public perception, every time.
3️⃣ Credit culture and instant gratification are setting people back.
Let’s talk about the sneaky money trap: credit cards and Buy Now Pay Later (BNPL).
Most people don’t realise the real issue isn’t the card. It’s how they’re using it.
What I’ve seen:
Paying only the minimum instead of clearing the full balance, while still swiping the card every week 😮💨
BNPL used for EVERYTHING - groceries, clothes, outings and even takeaways! (Why Funke? Why?? 😭)
Treating credit as extra income instead of future debt
All of it quietly adds up. £40 here, £75 there, and suddenly, £2,000 is sitting on a card with 29.99% interest!
And more often than not, it’s driven by instant gratification. Wanting something now and hoping “future me” will sort it out.
✅ My tip: If you don’t already know exactly how and when you’ll pay it off, don’t put it on credit 🙅🏽♀️. Save first. Spend later.
4️⃣ Herd mentality around homeownership is causing financial strain.
Everyone wants to buy a home, and to be honest, I get it. But in the rush to get on the ladder, I’ve seen people take on mortgages that eat up 60–70% of their income 😰.
They planned for the deposit, the legal fees, the moving costs… but not for what life would look like after the keys were handed over.
Can you afford the monthly payments if your salary drops?
What about rising interest rates?
Can you still save or invest, or is every penny now going to your house?
Owning a home is amazing but only if it doesn’t rob you of financial freedom in the process.
✅ My tip: Before buying, work backwards. Know your monthly affordability first, then decide on what you can buy, not the other way around.
🏠 Not sure where to start?
👉🏽 Download my free Mortgage Readiness Checklist or get my First-Time Home Buyer’s Guide for a step-by-step roadmap.
📺 New video this week
This week’s Fix My Finances episode is a must-watch if you’ve ever felt like you’re earning well and still not making progress.
💥 This UK couple are a dual-income household earning £6,000 a month with two kids. Yet they’re still stuck, overwhelmed, in debt, and barely able to save.
From reviewing their finances, I uncover some hidden truths that are keeping them stuck in the earn–spend–borrow cycle.
These 4 traps are avoidable, but only if you slow down, zoom out, and build your finances with intention.
Let me know which of these 4 money traps stood out to you most. Just hit reply. And if you’re ready for a financial reset, there are lots of free and paid resources on my site to get you started.
Until the same time next week, please drink water.
XOXO
Chidera
Your money coach
P.S – Want your finances reviewed anonymously on Fix My Finances? Apply here.
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