Why might individuals with bad financial habits struggle with future goals?

Individuals with bad financial habits often face increased debt and lower savings, which significantly hampers their ability to achieve future financial goals. Poor financial habits might include overspending, failing to budget, making impulsive purchases, or not saving consistently. As a result, these individuals may accumulate debt, such as credit card debt or loans, which can lead to high-interest payments and financial stress.

Lower savings further complicate their situation, as having insufficient savings means they are less prepared for emergencies, retirement, or significant investments. This lack of savings can create a cycle where individuals constantly juggle debt and expenses, making it challenging to set aside funds for future objectives like buying a home, starting a business, or funding education.

In contrast, those with better financial habits are likely to save regularly and build a financial cushion, allowing them to pursue and achieve their goals more effectively.