Bad Habits That Hinder Wealth Even When Earning 6-Figure Income

Nicole SymonSun, May 3, 2026 at 12:00 PM UTC

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Earning a six-figure salary is a major financial goal for many people. When you hit this benchmark, it can feel like the key to unlocking financial security and becoming a millionaire — but is it?

In an Instagram post, millennial money coach Rachel Covert argued even people earning six-figure salaries may never become millionaires if they don’t handle their money responsibly. Here are the five reasons she gave that you’ll never be a millionaire even if you’re earning $100,000 or more.

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1. You Don't Save Enough To Cover a $4,000 Emergency

Financial planning would be much easier if everything were perfectly predictable 100% of the time, but that’s not how life goes. You’ll definitely face some emergencies and unexpected situations that come with similarly unexpected costs over your lifetime. The key to protecting your financial health is having an emergency fund to cover those costs when they arise.

Covert argued if you don’t have at least $4,000 in an emergency fund (or a similarly liquid account) to cover such costs, that’s a sign you’ll never become a millionaire. If you don’t have that money saved up and a $4,000 emergency were to arise, you’d have to go into debt. Since debt, especially credit card debt, can be expensive, not having a fully funded emergency fund can threaten your financial future.

2. You Overspend and Use Credit Cards To Cover Essentials

Most salaried employees receive a paycheck every other week. When you see that money hit your bank account, you may be tempted to go out and spend most of it. However, you then have to wait another two weeks for your next paycheck. You can easily run out of money in that period of time if you’re not careful.

Covert said running out of cash and needing to put essentials like groceries on your credit card is a sign you won’t become a millionaire. Someone who manages their money well and makes it last between paychecks is better equipped to reach millionaire status, even if they don’t earn more money.

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Resist the urge to spend your money as soon as you get paid. Instead, focus on allocating enough of your paycheck for your essential expenses, saving some of the money and planning for your future financial goals.

3. You've Racked Up Insurmountable Credit Card Balances

If you consistently make large payments on your credit card balance and still can’t seem to eliminate the debt, Covert believes that could be a sign you won’t become a millionaire. The reasoning is that credit card debt is costly and can quickly get out of hand as fees and interest payments add up.

Being unable to eliminate your credit card balance despite making significant payments means either your existing balance was too large or you’re adding enough monthly charges to counterbalance your payments. Either way, credit card debt needs to be under control before you have any chance of growing your wealth to become a millionaire.

4. You Justify Purchases You Don’t Need

It’s normal to want to buy things beyond bare essentials. In fact, part of financial freedom is being able to afford things you want, not just things you need. However, if you find yourself justifying almost any purchase, even when you know you probably shouldn’t buy something, that’s one of Covert’s signs you’ll never become a millionaire.

Part of becoming a millionaire, even on a six-figure salary, is learning to say no to some purchases you want when they don’t support your larger goals. Set stricter standards for the purchases you make to avoid wasting money.

5. You Don't Budget or Even Know How Much You Spend

Finally, not knowing how much your monthly expenses add up to is the final sign you won’t become a millionaire, according to Covert. After all, if you don’t know how much you’re spending, how can you effectively budget your money to reach your financial goals?

It’s easier for your expenses to get out of control if you’re not aware of how much you’re spending. Take some time to review your monthly expenses over the last few months and check for any surprises. If you discover your spending habits aren’t supporting your goals, make a plan to lower your expenses and be more mindful of your money.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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Source: “AOL Money”