Rising costs and unchecked habits continue to be major roadblocks for people trying to grow their savings in 2025. A recent Gallup Poll from April highlights what many Americans already feel: inflation, steep housing prices, and flatlining wages are the top money stressors.
But beyond these obvious issues, a handful of everyday habits—and some sneaky expenses—are quietly undermining people’s ability to build financial stability.
1. Low-Yield Savings Accounts
Keeping money in a traditional savings account might feel like the responsible move, but if the interest rate is low, your savings are actually shrinking in real terms. Most banks offer rates far below inflation, with many hovering under the national average of 0.42%. That means your dollars lose value over time just sitting there.
Financial educator Jaspreet Singh suggests making the switch to high-yield savings accounts at FDIC-insured banks, which are currently offering returns closer to 4% or even 4.5%. It’s a simple shift that keeps your money working for you while still remaining safe and accessible.
2. Rising Costs for Auto Insurance
Car insurance is quietly becoming one of the most painful recurring expenses. According to May’s Consumer Price Index, auto premiums are up 7% from last year—more than double the pace of general inflation.
Since opting out of coverage isn’t realistic for most drivers, the best strategy is shopping around. Singh points out that switching insurers can reduce your monthly bill by as much as 15%. Regularly reviewing your policy ensures you’re not unknowingly overpaying for the same coverage someone else offers for less.
3. Emotional Investment Decisions
This past year has tested the nerves of even seasoned investors. From geopolitical tensions to wild market swings, many people reacted by selling low—missing rebounds and long-term gains.
Singh stresses the importance of riding out the storm. Markets naturally fluctuate, but panicked decisions often do more harm than good. Staying committed to a long-term strategy tends to generate far better results than trying to time the highs and lows.
4. Lingering Pandemic Spending Habits
During the pandemic, with stimulus payments rolling in and fewer ways to spend day-to-day, people grew accustomed to splurging—luxury items, subscription services, and impulse purchases became the norm.
But that landscape has changed. Without the same financial buffer, those spending patterns can now lead to debt and drained savings. Getting back to basics—tracking expenses, budgeting with intention, and cutting non-essential buys—can help regain control.
5. Sports Betting’s Expensive Impact
Sports betting has seen explosive growth, with over $72 billion wagered across the U.S. in 2024. With betting apps just a tap away, participation is easier than ever—but so is financial fallout.
Singh offers a clear reminder: treat betting as entertainment, not income. Most people underestimate how much they lose over time. Redirecting that money into actual investments or savings can help build something with real staying power.
6. Convenience Purchases with Hidden Costs
Ordering takeout or shopping through apps might feel efficient, but it comes with hidden expenses. Service fees, delivery charges, and tips can quickly snowball—especially if these purchases happen multiple times a week.
Add in the ease of one-click buying, and it’s easy to spend more than intended. Being more intentional about how and when you use delivery apps can stop small charges from turning into big financial leaks.
7. Skipping Self-Investment
One of the most costly oversights? Not putting money into your own growth. Singh doesn’t mince words: “The best investment isn’t in stocks, real estate, or even crypto—it’s in yourself.”
Oddly enough, many people hesitate to spend on courses, coaching, or tools that could boost their income, even as they drop money on electronics or travel. Prioritizing self-development pays off in the long run, often more than any trendy investment ever could.