Why Brits Stay Broke: Expert Slams Five Cultural Habits That Are Killing Your Wealth

A groundbreaking research has revealed that 66% of UK adults experience anxiety at the mere thought of investing their money, with 71% actively avoiding investment opportunities due to scam fears — even as their savings lose purchasing power to inflation at record rates.

The stark findings from Vetted Prop Firms expose a financial crisis hiding in plain sight: millions of Britons are watching their hard-earned money shrink in value whilst clinging to outdated savings habits passed down through generations.

Financial expert Fred Harrington warns the nation faces a 'perfect storm' of investment hesitance, with 70 per cent of adults citing lack of knowledge as their primary barrier to building wealth.

'The irony is that by trying to avoid risk, people are guaranteeing they'll lose money to inflation,' Harrington states. 'A savings account offering 2 per cent when inflation is running at 4 per cent means you're losing 2 per cent of your purchasing power every year.'

Playing it 'Too Safe' and Investment Stigma

One of those habits mentioned by the research includes reluctance to risk an investment, which leads to a continued sentiment that investment is equivalent to losing money on something 'too casual' like betting.

Many people in the UK still equate investing with gambling, choosing instead to leave their money in savings accounts that often fail to keep pace with inflation. This deep-seated aversion to risk stops individuals from considering diversified investment portfolios that could help safeguard and grow their wealth in the long run.

While modern investment platforms now provide lower-risk opportunities that typically deliver better returns than traditional savings, ingrained habits and attitudes prevent many from even exploring these options.

'The irony is that by trying to avoid risk, people are guaranteeing they'll lose money to inflation,' says Harrington. 'A savings account offering 2% when inflation is running at 4% means you're losing 2% of your purchasing power every year.'

'Blind Loyalty' to Legacy Institutions

Harrington also notes that for generations, Brits have remained loyal to the same banks and products their parents used, often missing out on better rates, lower fees, and more suitable investment options elsewhere. In short, familiarity may feel safe, but it limits financial growth.

There is also a strong cultural emphasis on property ownership that exacerbates this issue, as people allocate all their resources to buying a home, neglecting other investments.

'Bank loyalty made sense when there were fewer alternatives, but now it's limiting financial growth,' explains Harrington. 'High street banks often offer investment products with higher fees and lower returns than independent platforms.'

While property can be valuable, he also stated that relying on a single asset class is risky and reduces liquidity. For Harrington, this mindset prevents many from building diversified portfolios and benefiting from compound growth through regular, smaller investments, rather than waiting years to save for a house deposit.

'Property is great, but it shouldn't be your only investment,' warns Harrington. 'House prices can fall, maintenance costs money, and you can't easily sell a room if you need cash quickly.'

On Lingering Beliefs and Short-Term Priorities

There's still also a widespread notion that investing is reserved for the wealthy or City insiders, and this class-based stigma stops everyday Brits from recognising that investing is something they can—and should—do too.

'Investing doesn't require having loads of money to start with – you can begin with £25 a month on most platforms,' says Harrington. 'But many people think it's not for people like them, which is completely wrong.'

This mindset is especially harmful because it discourages people from starting early, when the power of compound growth is greatest.

Many Britons also assume investing demands insider knowledge or elite connections, overlooking the fact that there are plenty of simple, beginner-friendly ways to get started.

'We're brilliant at budgeting for holidays or Christmas, but terrible at planning for retirement or financial independence,' observes Harrington. 'This short-term focus means people miss out on the power of compound returns.'

Dispelling Myths on Modern Investing

Harrington closed off by stating that the biggest myth about modern investing is that it's too risky, but today's platforms make it easier and safer than ever. With low starting amounts, diversification across assets, and affordable access to professional research, investing is far more accessible than people realise.

Historical data reveal a crucial truth: balanced investment portfolios have consistently outperformed cash savings over any 10 years. Yet cultural habits formed in different economic conditions continue to dominate British financial behaviour.

'The real risk isn't investing itself, but instead doing nothing while inflation erodes your savings. A balanced portfolio has historically outperformed cash savings over any 10 years,' he said.

He then added that while past generations benefited from cautious saving, today's economic realities demand a more innovative approach. To build wealth now, people need to break old habits and embrace modern investing when traditional methods no longer deliver sufficient returns.

'These cultural habits served our grandparents well in a different economic environment, but they're holding us back today. Breaking free means being smart about growing your wealth when traditional approaches no longer work,' he concluded.

The message resonates clearly: whilst previous generations could rely on traditional savings accounts, today's Britons face a stark choice between embracing modern investment opportunities or watching inflation steadily erode their financial futures.