Money Traps Even the Smartest People Fall Into

I work with many amazing and smart people in healthcare, but a majority of my coworkers say they can't get ahead with money.

Here are some of the common money traps I see keeping people stuck:

💰 Spending Overtime & Bonus Pay Instead of Allocating It.

“Extra shifts = extra spending.”

Trap: No plan for bonus income leads to lifestyle creep.

✅ Financial Fix: Follow the 70/20/10 Rule:

70% to Essentials (minimum debt payment, mortgage, food)

20% Savings

10% to Debt payoffs above the minimum, or to financial goals if out of debt

Automate transfers the same day you get paid.

📉 Neglecting to Track Net Worth.

“I make good money — I’m sure I’m fine.”

Trap: Mistaking income for progress.

✅ Fix: Look at your:

- Cash + investments

- Debts

- Assets

Update monthly. What gets measured gets managed.

💳 Carrying Credit Card Balances “Just This Month”

“I’ll pay it off next check.”

Trap: Revolving debt at 20%+ APR while investing or saving.

✅ Financial Fix: Pause investing temporarily (yes, even Roth IRAs)

Use the debt snowball or avalanche.

Attack balances aggressively until gone.

🩼 No Disability Insurance

Trap: Assuming you’ll always be able to work.


✅ Fix: Get long-term disability insurance to protect your income — especially for bedside roles.

🏡 Buying a Home Without a Long-Term Plan

Trap: Purchasing in a city you might leave soon or buying too much house.

✅ Fix: Only buy if staying 5+ years, and keep total housing costs < 28% of income.

↪️ No Student Loan Repayment Strategy

Trap: Ignoring loans or hoping for forgiveness without a real plan.


✅ Fix: Know your loan type. Use SAVE/PSLF for federal loans or refinance private loans if eligible.