15 Money Habits That Keep You, Poor
Every day you choose if you will be rich or poor in the future; sometimes knowingly and other times unintentionally. By the end of this piece, you will have a clear idea of what’s actually happening and you will have a game plan that will solve this for you!
Here are 15 Money Habits that Keep you poor! Let’s do this!
Number 1: Taking bad money advice from poor people
You’ve been lied to by many generations who have no idea what they’re talking about.
Growing up, you’ve been told that the key to wealth is to get a well-paying job that pays you a good salary. Society has normalized putting hundreds of dollars worth of debt onto kids finishing university by perpetuating this old lie.
Brutal truth: you won’t get rich working for someone else! Also, stop taking advice from people who are not successful! Talk to people who are where you want to go. Without your choice, you end up surrounded by some people and they become your friends.
You are the average of the 5 people you spend most of your time with. Hang out with broke people?! Guess who’s gonna be the 6th?
You need to be able to take responsibility for your situation, even if the game is rigged against you.
Poor people love to blame others for their failures! Figure out a way to escape the system through skills that have economic value. If all you know how to do is flip burgers, you won’t get very far.
There are 2 ways to improve your value and they work hand in hand: What skills you have & How much people are willing to pay for putting those skills to work.
Lucky for you, you can learn valuable skills online for free and you can learn real skills which you can monetize.
In the age of information, being ignorant is a choice! Sort through the bullshit, find quality teachers and start learning.
Number 2: Gambling & Lottery:
Luck isn’t a strategy. Nobody will save you.
Jesus ain’t coming down to pay your rent and no lamp has ever produced a Genie. Life is a probability game. The more you understand this, the quicker you’ll stop being poor. All rich people do every single day is to focus their efforts on improving the probability of them making more money.
Poor people leave this probability up to the universe and with it their future. The moment you’re not writing the future for yourself that’s when you get whatever is left or whatever crumbs others are willing to throw your way.
Life is about control. Get as much of it as possible. Control yourself and your environment until the future becomes predictable. Once you have control, you don’t need luck. Rich people don’t believe in luck, they don’t need luck.
Luck is for poor people. If you work hard you don’t need luck.
Number 3: Spending money on things that you WANT but don’t NEED
Every time you buy something you don’t need, realize you’ve been marketed to.
Someone convinced you to trade your hard-earned money for a feeling. Poor people are quite profitable! Companies and marketing people understand this very clearly! That’s why you see all those broke people trying to flex on the gram.
Poor people think rich people wear Gucci because Gucci is paying celebrities to wear the brand so they can sell more to poor people. You are being marketed to all the time because poor people are bad with money.
That’s the paradox of growing up broke: You stay broke by trying to fill the whole growing up broke left inside of you!
Please remember that: If it’s on sale but you don’t need it, it’s still expensive and you shouldn’t buy it.
15 Money Habits That Keep You, Poor
Number 4: Not knowing how much money you spent last week, month, and year
Y’all just spend money the second it hits your account. Every poor person out there complains that they don’t have enough money, yet none of them know where their money goes.
Do you think tracking your expenses is hard?! Do you know what’s even harder? Staying poor and not being able to afford anything! Wake yourself up and realize just how much money you’re unnecessarily spending on subscriptions and stuff you don’t need.
That money could go towards paying off your debt or plugging your other money holes. `Poor people are good at surviving with little to no money, so when they do get paid they’re quick to spend it to return to their default, out of a fear that somehow it will be taken away from them by life.
Every resource out there will talk about budgeting and planning, and yes that’s the way to do it, but as long as MONEY COMING IN – MONEY GOING OUT = 0; How can you expect your life to improve.
Measure how much money you’re making and track how much you’re spending. It’s the first step to realize just how fragile a position you find yourself in.
Number 5: Spending money you don’t have on things you can’t afford anyway
This is the deadliest combination out there.
Why are you spending money you don’t have? Debt is modern-day slavery. The moment you borrow money to buy anything, the corporation owns your time until the money is repaid with interest. The first thing you need to do is to stop wanting things NOW! Instead, only buy it when you can actually afford it.
A good rule of thumb is: If you have to ask if you can afford it, you don’t!
Nobody needs to have an internal debate when you’re picking up chewing gum at the cash register, you just buy it because you can afford it.
You know damn well you can afford 10-20 of those Orbits. If you can’t buy it twice, you can’t afford it! Borrowing money is a horrible habit that is systematically keeping the general population poor.
Be wary of lending other people your money; for while it’s with them, it ain’t earning money with you! Banks and loan sharks are the only ones who profit from lending money, everyone else is being bled dry.
Number 6: Trying to keep up appearances
People will sacrifice their own future just to impress people they don’t like. The more you think about it, the more you realize just how foolish that sounds.
Why do you feel the need to spend hundreds of thousands on a wedding when you could invest in a business or travel the world with your loved one? Why do you feel the need to upgrade your iPhone every year when the old one works just as well? Why do you need to have a kid just because your friend had hers?
We are proud people and don’t want to be perceived as inferior, and that’s exactly how you end up poor long-term because the things that get you out of poverty are in the exact opposite direction: STOP PLAYING STATUS GAMES!
There’s a hidden rule that poor people don’t know: The appearance game can not be won! The second you get up to date, that’s when the goal post moves.
What you end up with is called the RED QUEEN’s RACE. A concept from Alice in Wonderland where you have to run as hard as you can just to stay in place.
That’s why you can never win this game. You need to keep spending your money just to stay in the same place.
Number 7: Having only 1 source of income
This is where we feel some butts clenching up because who can afford to work yet another job?!
See.. for poor people, working a job is the only way they know how to earn money and as we established early on, working a job will never make you rich.
On top of that, there will always be a ceiling to the number of jobs one can work and respectively, the amount of money one can earn. Plus, if a car runs you over and you can’t go to work for the next 4 months, none of that income is coming in, is it?!
The math is simple, the more streams of income you have, the less likely you are to go broke.
Research into the distributed wealth of the rich shows that: 65% of self-made millionaires had three streams of income, 45% of self-made millionaires had four streams of income, and 29% of self-made millionaires had five or more streams of income.
If you’re unable to earn money while you sleep, you will never be rich!
The moment you taste the freedom of working for yourself and having multiple income streams you become unemployable!
15 Money Habits That Keep You Poor
Number 8: Wasting money and time (usually on entertainment)
When everybody has the same number of hours in a day the difference in long-term results comes from how many of those hours we use to better ourselves.
If you’re in your 30s and broke, it’s because you procrastinated in your 20s. Wanna be rich? Every day: Spend more time on creation than you spend on consumption. This creates a value-added surplus in your life.
Pay attention to what you’re creating. Understand the fundamentals mentioned earlier about earning while you sleep and it’s just a matter of time until the residual income becomes decent.
If you want to start your wealth-building process, replace the dead-times in your day with productive activities. Follow up by cutting entertainment. It will be a pain in the butt for a while, but you’ll see things get better fairly quickly.
If you’re broke, you can’t afford entertainment. You can’t afford to waste time, because wasting time is the most expensive thing around.
Number 9: Going YOLO:
Thinking short-term vs Long term; Does Anyone remembers when YOLO was a thing?!
Stop sacrificing the future for the present when the present isn’t that good.
Screw living rich and dying broke! The entire flex culture and this attitude of living in the moment do nothing but harm on the poor part of society. It keeps them poor by selling them the dream.
Fundamentally, Poor people buy things that don’t hold value! It gets worse… Poor people pay interest when they borrow money to buy things that depreciate in value over time. The average car will depreciate -by 63% in the first 5 years.
Not only you’re losing money every year but you’re also paying interest in the money you borrowed to get it. You’re getting screwed from both ends, yet…You flex that new whip on the gram right?!
Well…who’s actually laughing when the lights don’t turn on?!
Every self-help book, product, video, and so on boils down to a single piece of advice: CHOOSE LONG TERM OVER SHORT TERM! Get it backward and you will be generationally poor!
Number 10: Not learning how to invest & Being afraid to change
If what you are lacking is money…why don’t you spend some time to learn how money works?! It’s usually because of arrogance.
People falsely assume that they understand money, because they’ve seen it in other people. Everything you need to know about money is available for FREE. There’s more value offered for free on our blog alone than in the MBA or elite coaching programs we’ve attended.
How many of you actually own at least 1 stock in any company? How few of you know what the process of buying 1 stock is like? There are hundreds of platforms that allow you to invest money, yet you keep postponing it.
There’s this abundance of technology all around us. Opportunities have been democratized to the masses. Anyone can hop on any new technology and use it to better themselves, yet they use it to stalk fitness models on Instagram.
The more you learn the more you earn!
The more you’re able to use modern technology the higher your leverage is. Don’t be scared of the new, embrace it and you will be rewarded for it.
Number 11: Spending first and then hoping there’s something left to save or invest when you’re done
Poor people do another thing backward than everyone rich.
They get money, spend it, and save/invest whatever is left at the end. As you probably know from experience, there’s never anything left. That’s why 2 in 3 persons live paycheck to paycheck.
When the rich get paid, a portion of the money goes directly to investments or savings accounts and then proceeds to go through your month with what’s left. This works because the focus is always on increasing income through those investments.
Instead, the average person goes on a spending spree. This is also fueled by the rise of social networks. 57% of millennials say they overspend because of something they saw on social media! When you see all these celebs going to the Maldives you start craving that as you associate it with happiness and success.
This develops what is known as FOMO, fear of missing out, so you spend more. What most people don’t realize is just how fake social media is. We are a sad generation posting happy pictures for internet points! Every experience posted takes away from the actual experience.
Everything posted has become an advertisement, if not for other brands, then it’s for your own brand.
Number 12: Paying too much in taxes
It always blows our mind how Poor people are happy when they get a tax refund.
That’s money you lent to the government with no interest in it. They used your money for free. But that’s not all of it. Poor people get taxes very differently than rich people and we’ve covered this before.
If you’re working a job, the state takes out your taxes straight out of your paycheck and then you’re left with the money to spend. If you’re a business, you first get to spend how much money you want to spend, and then the state taxes what’s left.
Number 13: Unhealthy lifestyle
Almost every unhealthy habit you have in your life is making you poor.
Cigarettes? Yep, making you poor. Alcohol. Same. Eating fast food on the couch binge-watching anime! POOR!!!
Not only do these create financial addiction taking money directly out of your pocket, but they also serve as a domino effect connected to everything else in your life.
If you’re fat, you’re less likely to get a job promotion and more likely to have complicated heart problems which result in an enormous healthcare bill.
It’s the old idea that if you don’t fix a cavity you will soon have to pay for an implant.
Take a moment to look around you right now and see all the junk that surrounds you. You paid for most of it and it’s affecting your life.
Number 14: Wanting money to be easy and fast
For some reason, the idea of progressive growth in income and wealth does not resonate with poor people. Every single one you ask will tell you about how they want to hit it big.
Have a big score and then retire. They grow looking up to the likes of Pablo Escobar, Tony Montana, Don Corleone. They all think of themselves as mobsters, of people on the underground who have something big cooking.
You know the type. They’re usually flimsy, not creative, and not that smart. Put the same time and interest into learning how people build companies and do what everyone else did in your area.
It’s not rocket science. It’s actually a lot easier to make a ton of money legally than it is trying to run a cartel. In the age where a 16-year-old with an Instagram account can become a multi-millionaire, why risk getting shot?! Making money is actually a boring process once you figure out what you have to do.
It takes less than 10 years for anyone who’s committed to going from poverty to wealth, yet for some reason, it’s still too long for some of them. That’s when they fall into the trap of get-rich-quick schemes or Multi-level-marketing ploys.
As long as you live remember this: There are no get rich quick schemes, there’s only someone getting rich off of you!
Number 15: Staying poor is a choice
The habit of thinking of yourself as poor, as someone who will never be wealthy, as someone who’s not smart enough, good enough, educated enough is what’s actually keeping you poor.
People with less than you have managed to escape poverty, yet there you are complaining that things don’t come easier for you. Yes, life is hard. Maybe it was a lot harder for you than for everyone else.
But what are you going to do? Drown yourself in the misery of it all or pick yourself up and start walking?! As long as you keep going, keep learning and improvise along the way, you’ll end up where you want.
At the end of the day, you can’t choose where you’re born, who your parents are and the environment you grow up in, but at some point, it all switches to you. You can choose what your life will be like, how much you’re willing to work and what the future holds for you.
Bill put it well when he said: If you were born poor, it isn’t your fault, but if you die poor, that’s on you!
We take pride in the quality of our audience and your desire to actively improve your life so we want you to join the conversion: What behaviors did you experience or witness that are keeping people poor? Let us know in the comments!