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 you're doing it, this is especially true in the way you manage your

money

. In this video, I'll talk about eight

money

habits

that

keep

you

poor

before I recognize these eight bad money

habits

. I was always in debt and had trouble saving money, but once I realized what I was doing, I started replacing bad money habits with good ones. money habits and that's exactly what helped me pay off $80,000 in student loans in just a few years and finally start investing my money so I can work smarter and not harder.

Your habits have knock-on effects that compound over time and ultimately determine who you are. become and whether you will end up rich or

poor

, that is why it is very important to recognize any bad money habits you have from the beginning and replace them with good money habits, so hit the like button and let's get started. The number one money habit is to pay your

self

last. This is what I mean by this, as soon as you get paid, you pay your rent, phone bill, gym membership, go out to dinner, buy your

self

something nice and plan to save if there is money left at the end of the problem. of the month is that there is never any money left to save.

The people I'm familiar with who get ahead financially do the exact opposite: they pay themselves first, which means that before they start paying their bills, they swipe their cards from left to right and give money to everyone else. in his mother, except. For themselves, they first put a portion of everything they earn into their own pockets, then pay their bills and live on what's left. They prioritize getting richer rather than making other people richer. People who are good at saving money understand something called Parkinson's law. The law is the principle that demands will always expand until they consume all available resources, which is why if you have a week to finish a project, you end up taking that long to finish it and you were probably quite inefficient with your time, while if you only have one. hour to finish that same project, you will be super focused and efficient and still get it done, so the work will expand to consume all the available time and the same goes for the money you are spending, it will expand to consume all the money available, whether you have a hundred dollars. or a hundred thousand dollars, your expenses will continue to increase until you consume all the money you have, that is why earning more and more money is not always the answer and saving money after you have made all your expenses simply will not work because your expenses always rise to eat everything That money you have to pay yourself you should first treat the money saved like a bill, so as soon as you get paid, commit to setting aside 10% or whatever percentage you can manage and put it toward savings and investments. and then just live off what's left, so if you want to

stop

letting money slip through your fingers and really want to start

keep

ing some of what you earn, give up money habit number one for good, next habit of money you should give up is Trying to keep up with friends who have expensive tastes, do you have friends who always want you to go to expensive restaurants, go shopping with them, travel 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 just say 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 the question. my budget if there are real friends. They will understand that everyone has very different tastes and very different budgets, so trying to keep up with everyone around you will leave you broke and in debt, this includes your friends and people you see on social media, the reality is The average American has very little savings and an average of thirty-eight thousand dollars in debt and that's not including mortgages, so a lot of what you see in terms of incredible lifestyles on social media and whatnot often It's just an illusion, in fact, I personally know someone who always posts photos on Instagram of her traveling to all kinds of exotic places and it really seems like she has an amazing and glamorous life, but the reality is that she has $20,000 in card debt credit and have no savings or investments, so don't do it.

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 others is a recipe for bankruptcy. I think it basically comes down to this: Would you rather look rich? or would you rather be rich if you dream of being financially independent one day you have to

stop

worrying about what others think of you because no one else will make this happen for you but just learn to speak up for yourself don't do it. Be afraid to decline invitations or don't be afraid to simply adjust cheaper activities for you and your friends because people will likely respect you for having your priorities straight and it will probably inspire them to reevaluate their financial priorities too.

Money giving up habit is putting everything on your credit card to get 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 award miles which I accumulate with my United Explorer card, but a lot of times I find that people end up spending a lot more on their credit card than they would have otherwise and that basically negates all the benefits of having these credit card rewards. I'm also very guilty of this, when I'm considering whether to make a purchase or not, I sometimes find myself justifying it because I'm like, well, at least I'll get miles for it and this is even if I actually can't. afford it so this is a very very very slippery slope since I noticed this pattern I just stopped putting everything on my card and this is what I do for small everyday items like coffees and taxi rides.

I only pay it with my debit. cash card, but if there's something that costs a hundred dollars or more, like facials and hotel courses, things like that, I basically put it on my credit card to get award miles, but then I pay for it immediately, like after a few seconds of making the purchase, and just doing it all on my phone that way forces me to only buy things I can pay for in cash while still allowing me to get those vials and take advantage of all those awesome credit card benefits before I start to do it this way.

I just build up a balance and then each month I'm surprised at how much I spent because putting things in plastic really has a way of making you spend a little mindlessly, especially if you're justifying your spending because of the rewards. So the money habit you should break is to make sure you only put things on your rewards credit card if you have the money to pay for them in cash and not justify the purchase just by the points or money habit number or miles. . Four is having disorganized finances having disorganized finances is basically another way of keeping your head in the sand if you have open credit cards everywhere, student loans that you don't really know the balance of and you're not really sure what you're spending . every month then it really is time to consolidate, so there are a lot of really awesome apps that make it really easy to keep track of all your financial affairs, for example, I used to use mint and I really liked it, you can connect your bank accounts and your credit. cards and they will look at your spending and your income and tell you what your spending looks like each month and you can also go in all of your accounts and look at your network and see how it changes over time and it really only takes a few minutes to set up, it's totally worth it. worth your time and since I switched to tracking my finances in a spreadsheet instead of apps because I'm a huge nerd and I love my spreadsheets and I look at my spreadsheet to update my net worth every month That way I can see the progress I'm making month by month and this is not only very motivating but also forces me to keep my finances very organized because I know where all my money is at all times. helps keep your finances organized is to choose a financial institution that offers a wide range of services so you can do all your financial things in one place, the fewer online usernames and passwords you have to keep track of, the better, e.g.

I have my personal checking account as well as most of my investment accounts like my Roth IRA and my say blah blah blah. I have all that loyalty to be able to access all my financial stuff with one username and it was really convenient another place that offers a full suite of Services are upgrades that offer a checking account, a high-yield savings account, as well as different investment accounts for all your financial goals, either way with technology and all these amazing new platforms, it really isn't difficult to get organized and stay organized with your finances, the key is to simply work up the courage to really analyze what your financial situation is. and I know it can be a moment of humility and reflection for some people, but until you know your starting point, it's impossible to get to where you want to be, you know how.

Can you get to where you want to be if you don't know where you are now? So quit the habit of being confused about your finances. Create a habit of staying organized and looking at your numbers regularly. Money habit number five is making you sleepy. Debts We live in a society where practically everyone has debts. It's become totally normal for a 20-year-old to have tens of thousands of dollars in student loan debt, and it's totally normal for a 40-year-old to have a mortgage, a car loan, a credit card debt. and they're possibly even paying off their student loans still, but listen, just because everyone else is living with debt doesn't mean it's okay for you to live with debt when I was applying to colleges, I had the option to go to USC, which is a school in Los Angeles with full cost for my tuition, however the school I really wanted to go to was NYU and I chose to go to NYU because that's the school I really wanted to go to except I didn't get to being as close as both on scholarships to NYU and USC and honestly sometimes I wonder where I would be if I just went to USC and didn't graduate with student loans, don't get me wrong, I don't regret it, really I loved going. to New York University, but because debt is so normalized in our society, I didn't even think twice about giving my life to student loans when I was eighteen.

It's crazy, don't go into debt if you don't have to. pay for things in cash don't do things if you can't pay them don't go into debt for college and months unless it's absolutely necessary and you know you'll get a job that will allow you to pay them off quickly don't get a loan to buy a car don't get a mortgage if you're still paying off student loans it's too much debt these days the status quo is living with debt but don't settle for the status quo do whatever it takes to live debt free money habit number six is ​​paying extra because of the lack of planning I used to be the queen of cheap $10 umbrellas because I always forgot to check the weather and ended up getting stuck in the rain and having to run to a drugstore to buy another umbrella even though I have several umbrellas at home, not planning ahead of time and they always catch me off guard. ends up costing you money, so this could be things like having to take an Uber instead of using your metro card, it could also be like paying overdraft fees because you didn't check your account balance, another way is to put things in a credit card and you just end up paying all these interest charges because you didn't set aside money for unexpected expenses no, I'm talking about Yolo and living spontaneously, but if you always have to buy things you already have at home or just pay more fees and interests because you're not prepared, then just take a few extra minutes to plan ahead check the weather before you leave the house leave some buffer time between appointments check your account balance from time to time and things like that even a little bit of planning It will save you tons of money and at the end of the day, having money in the bank is what will allow you to Yolo as much as you want.

Money habit number seven is paying too much in taxes, taxes will be the biggest expense in your life, so why not do it? It can reduce your tax bill. Most blue taxes are for the rich,for people who own assets and businesses, but there are also many tax loopholes available for the average person, for example. Most people have a 401 through their employer and contributing to your 401k is a way to directly reduce your taxable income. The HSA is another way to reduce your taxable income and also everyone is eligible to open an IRA, whether it's a traditional IRA or a Roth IRA and These are investment accounts that protect your dividends and earnings from taxes, so I'll talk more about the ways to reduce your tax bill in this video right here, so definitely check it out to learn more because there are many ways you can get started. pay less taxes starting today, bad money habit number eight is to postpone investing until you have more money, as I mentioned in my first tip, postpone things like saving money and investing for the future, which is a very slippery slope that you could to be thinking.

You will start doing it one day when you have more money, but most of the time that becomes an endless cycle of procrastination and excuses, there will always be Reasons why you can't invest Not enough money Not enough knowledge Not enough time Other priorities , etc., etc., but the longer you put off investing, the more you will have to work to reach the same level of financial freedom as someone who starts investing. Before, someone who starts investing at age 20 can become a millionaire at age 50 by investing just one hundred and eighty thousand dollars of his own money;

However, if you waited until you were thirty to start investing, you would need to invest almost double his money. own money to reach millionaire status by age fifty, which means the sooner you start, the less grunt work you'll have to do and the less own money you'll need to become a millionaire, even if it's just fifty dollars a month, start investing now. Don't wait, it's very easy to start investing if you just put your money in some low-cost index funds and I talk more about how to choose good index funds in this video right here, so check it out for more information and I also have a There is Lots of great investing tutorials on my channel, so set aside a weekend to learn and get started.

You'll be glad you started when you did, if the idea of ​​saving and your money doesn't sound fun to you, then try rethinking how. If you think about it, it's not about discipline and deprivation, it's about taking care of your future, it's a form of self-care. and self-care is fun because it makes you feel good and it makes your life so much better if you've caught yourself doing any of these money habits just be kind to yourself, you know, don't beat yourself up about it because most of us don't learn these things in school and we don't learn them from our parents, most of us people who have good money.

Habits are usually learned the hard way, by screwing up and wanting to do better. I'm definitely not perfect by any means either, so even though I'm a YouTuber who talks about money, a lot of what I talked about in this video is stuff. which I also needed to be reminded of, it's about having the awareness and financial education to notice if your daily actions are bringing you closer to your financial goals or further away from your financial goals and it's never too late to replace bad financial habits. with good money habits and to improve your relationship with money, so if you want to move forward, make sure to visit my channel to see more videos that inspire you and teach you more about money, like this video if you liked it and to me.

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