8 Money Habits That Keep You Poor (STOP SELF SABOTAGE)

most of what we do on a daily basis is automatic like brushing your teeth you don't even think about it and most of the time you don't even realize that you're doing it this is especially true with how you handle your money in this video I'm gonna talk about eight money habits that keep you poor before recognizing these eight bad money habits I was always in debt and had trouble saving any money but once I realized what I was doing I started replacing bad money habits with good money habits and that's exactly what helped me pay off $80,000 of student loans in just a few years and to finally start investing my money so that I could work smarter not harder your habits have ripple effects that get compounded over time and they ultimately determine who you become and whether you'll end up rich or poor that's why it's super important to recognize any bad money habits you have early on and replace them with good money habits so hit that like button and let's get started money habit number one is paying yourself last here's what I mean by this as soon as you get paid you pay your rent your phone bill your gym membership you go out to dinner you buy something nice for yourself and you're planning to save if there's any money left at the end of the month problem is there's never any money left to save sound familiar people who get ahead financially do the exact opposite they pay themselves first that means that before they start paying their bills swiping their cards left and right and giving money to everyone else in their mother except for themselves they put a portion of everything they make into their own pockets first then they pay their bills and live on what's left they prioritize making themselves richer versus making other people richer people who are good at saving money all understand something called Parkinson's law so Parkinson's law is the principle that demands will always expand to consume all available resources that's why if you have a week to finish a project you end up taking all that time to finish it and you were probably pretty inefficient with your time whereas if you have just one hour to finish that same project you'll be super focused and efficient and still get it done so work expands to consume all available time and it's the same with money you're spending will expand to consume all available money whether you have a hundred dollars or a hundred thousand dollars your expenses will keep increasing to consume all the money that you have that's why making more and more money isn't always the answer and saving money after after you do all your spending is just not gonna work because your spending will always rise to just eat up all that money you got to pay yourself first you gotta treat saving money like a bill so as soon as you get paid commit to setting aside 10% or whatever percentage that you can handle and put that towards savings and investments and then just live on what's left so if you want to stop letting money slip through your fingers and you actually want to start keeping some of what you make for yourself then give up money habit number one for good the next money habit to give up it's trying to keep up with friends who have expensive tastes so do you have friends who always want you to go out to expensive restaurants and go shopping with them and go on trips with them and stay in nice hotels so if you have friends with bigger budgets and yours then it's okay to be authentic and say just you know hey I can't I can't do that because I'm working towards some financial goals right now and I need to save money it's out of my budget if there are real friends they'll understand everyone has very different levels of tastes as well as very different budgets so trying to keep up with everyone around you is going to leave you broke and in debt this includes friends as well as people you see on social media the reality is the average American has very little in savings and an average of thirty eight thousand dollars in debt and that's not even including mortgages so a lot of what you see in terms of amazing lifestyles on social media and whatever is often just an illusion in fact I personally know someone who is always posting Instagram photos of herself traveling to all kinds of exotic locations and it really looks like she has this glamorous awesome life but the reality is she has $20,000 in credit card debt and has zero in savings and investments so don't be fooled a lot of what you see is not real and chasing experiences just so you can post a cool photo on Instagram or look good to everybody else is a recipe for ending up broke I think it basically comes down to this would you rather look rich or would you rather be rich if you dream about becoming financially independent one day you have to stop caring what everyone else thinks about you because no one else is gonna make it happen for you but you just learn how to speak up for yourself don't be afraid to turn down invitations or don't be afraid to just adjust cheaper activities for you and your friends because chances are people will respect you for having your priorities straight and it'll probably inspire them to reassess their financial priorities as well the third money habit to give up it's putting everything on your credit card for the cash back rewards and award miles now don't get me wrong credit cards are amazing I love my credit card I haven't paid for a flight in years thanks to the award miles that I rack up on my United explorer card but often times I find that people end up spending way more on their credit card than they would have spent otherwise and that basically just cancels out all the benefits of having these credit card rewards I'm freakin guilty of this as well when I'm considering whether to make a purchase or not sometimes I find myself justifying it because I'm like hey well at least I'll get miles for it and this is even if I can't actually afford it so this is a very very very slippery slope ever since I realized this pattern I've just stopped putting everything on my card and here's what I do instead for everyday small items like coffees and cab rides I just pay for it with my debit card in cash but if there's anything that's a hundred dollars or more like facials and hotels courses things like that I basically put it on my credit card to get the award miles but then I pay it off immediately like within seconds of making the purchase and I just do it all on my phone that way it forces me to only buy things I can afford to pay for in cash while also allowing me to get those vials and turn all those amazing credit card benefits before I started doing it this way I would usually just rack up a balance and then every month I just be shocked at how much I'd spent because putting things on plastic really has a way of just making you spend a little to mindlessly especially if you're justifying your spending because of the rewards so the money habit to give up is to make

Related Articles

Back to top button