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| Eliminate Bad Money Habits | How to Create a Rich Life - Cash Cobra |
What bad habits are keeping you poor?
A lot of times you might not even notice how much when you are just throwing out random things and that's really hurting your wealth. I'm gonna talk about common things that really get in the way of reaching that wealth.
Once you have a mindset shift things will really take a turn for the better and you will be making more money-making investments and then living abundantly.
Welcome back I am going to teach you all the things that schools should have taught you about money but there was too busy training you how to be an employee well be sure to subscribe because we talked about everything from personal finance to investing in the economy so let's get into it.
Exchange Time for Money
The number one thing that people do that stops us from being rich is thinking that you're supposed to exchange time for money. Now again I'm working 9-5. There is nothing wrong with me 9-5 and in fact, your nine-to-five can and should be funding your passion projects and your side hustles and your streams of income.
I constantly see people saying oh I'm grinding I just put in a voice in our ship getting my money up and I just cannot but think that's not always supposed to be I know I might sound crazy but I am not trying to work for 40 years I'm sorry I'm not I'm telling excited quick fashion in a hurry okay.
When I say retire just so what y'all know it I'm still gonna be working but it won't be for the man but the idea of exchanging time for money. You'll never reach optimal wealth that way because there are only so many hours in a day you can only work for so long before you become burnt out.
Having Passive Income
Having passive income having scalable businesses is a way that you really reach wealth because your money is making money for you and you don't necessarily have to be there.
I talked here about having rental income and using real estate as an investment. I mean this is one of the greatest ways to make money right because you'll have a long-term tenant. Maybe you have to go you know call somebody to fix a toilet occasionally but that money will be coming in the first of the month all the time.
You don't have to really put a whole bunch of work in it's just kind of maintenance the work is put in upfront and then after all that is done it runs itself. That's the true way to create a lot of money without having to really waste a whole bunch of your time and then you can focus your time on doing better things.
I try to find more money and I know everybody's not built for that entrepreneurial lifestyle and that is okay but trying to find passive income is a good way to just kind of pad your retirement it's a good way for you to build wealth and not have to depend on your job solely for income.
Being Easily Influenced
Another thing that people do that sussing being is being easily influenced. have been victim to this plenty of times where there was a point where I was getting that new iPhone baby every single year crystal had a new iPhone.
Now I have the iPhone eight I've had it for a couple years and I'm faithful I'm sorry okay I don't want to know I don't see anybody else.
Do not try to keep up with the Joneses it doesn't just are in debt I saw it they cannot afford it you cannot afford it if what you have ain't broke don't fix it don't fall victim to.
Let's go out for drinks to let's go on vacation again for the third time this month have a little bit of self-control because those things add up even going to Starbucks will add up.
I used to spend one hundred and fifty dollars at Starbucks a month and if you're not keeping track of those things it can really creep up on you. Definitely make sure you are keeping up and being very conscious of falling into temptation from friends.
Check Out: How To Pay off Debt FAST | Steps to Financial Freedom
I want you to really think about the manage your spending and determine like hmm is this what I want or is this what society says that I want you to know and do I really need that iPhone 11 with the three eyes looking at me or am I okay with my iPhone 8 then has a little crack but you know you can't feel it when you put your finger on it.
The thing that is detrimental to your wealth is lifestyle inflation if you were getting by when he was making $20,000. When you get that raise keep on making it by.
I mean that doesn't mean you can't spend a little bit extra but it does mean that you should not spend all of that money on doing a whole bunch of something weren't doing before.
Try to live within a comfortable means you don't have to have a brand new car you don't have to have everything new and updated because you make more money. I've talked about this before but it's worth repeating just cuz you make no money doesn't mean you need to spend more money.
If anything you can invest that money and eventually your investments we making money for you and then you can spend that money also on those people who get paid bi-weekly.
You normally get paid twice a month. There are two extra checks that you should be having I should automatically be going towards some sort of savings or some sort of investment or some sort of debt pay down right.
Think about that you know where does that third check go your bills are beginning to pay for the past ten months you've been Ian for the past ten months off of two checks so use that other check and put it somewhere else more important.
It's really important to learn how to manage the money that you do have okay the money isn't the problem it's your spending habits is your control it's your discipline it won't matter how much money you make if you do not have those things.
Addicted to Buying
Addicted to buying do you always need to have the newest outfit or always to spend money when you go out. Be able to tell yourself no, tell your mama no. tell your best friend no, tell your boo no okay.
The importance of no not only from a financial perspective but just kind of a mental psychological-emotional. I don't know I'm not a therapist but the idea of no is so important to have because you have to have limb boundaries now.
It's the idea of having an impulse buy list and the idea of the impulse buy list is basically if you feel like you want to buy something but you know that was not in your plan it wasn't in God's plan you just came out of nowhere students buy this write it down instead how much it costs and don't buy it.
Then at the end of the month or the end of the week tally up all your impulse buys and see how much money you saved from telling yourself no.
Pay it Later Mentality
If you don't happen now and you probably won't pay it later do not spend before you make do not put it on the credit if you cannot afford it do not put on the credit period if you ain't gonna pay it off.
It is really good to make a habit of using your credit card for benefits which I talked about. If you know you do not have the discipline. Do not swipe it is a debt sentence.
Not Applying for Extra Money You Make Towards Your Debt
Debt is the number one thing that now holds people back and stops creating financial freedom and financial independence. Any extra money you have you should be applying it to debt first.
It's the idea of should you pay up hit that first should you invest first and everybody's situation is different but if you have credit card debts. It's almost always a better idea to pay that off expeditiously.
Interest rates have been going down pretty much everything except credit cards. I saw a credit card for 27% I mean that's a lot of interest I interested in it the reason why credit card debt is so detrimental it's because it's variable and it'll creep up and you won't even know it so you might have started off at 15 but next thing you know you're at 18% and you didn't even notice.
If you do have a credit card debt check on a Debt Calculator. You can see how long will take you to pay off. It's really good to use.
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