Unfortunately, money habits aren’t taught in school. Most people get them from their parents. And if your parents didn’t have good money habits, it’s likely that it’s rubbed off on you.
So unless you really focus on changing habits that are costing you in the long-run, you’ll likely always be having a hard time managing money, or creating a fortune. Following are the most common habits that keep people poor – even those with a good income.
You’re relying on a single source of income
Most people just rely on a linear income and try to tiptoe through life wondering why their wealth isn’t ever growing. Linear payments include a salary, allowances or one-time payments.
Smart people, on the other hand, tend to focus on creating sources of passive income. They come in the form of royalties, interest, profit, etc. They don’t rely on a single source of income.
In fact, 65% of people had at least 3 streams of income before making their first million dollars. A lot of people seem to think that creating a passive income is a quick and easy alternative.
While it is definitely the smart option, it requires a lot of effort and possibly even years of hard work before you can see your labor bear fruit. If you’re like me, the best way out is to create sources of passive income while keeping your day job.
If you’re just earning money via your job and not investing time and money on starting a side business or passive income project, it’s likely that you’ll eventually run out of luck.
Linear income is like carrying a bucket to the river to fetch water. After a while your energy levels and health may not remain as robust – that’s when the real problems begin.
You have poor saving and spending habits
At one point I was working for a PR agency in Dubai, and making some serious money. I was working really hard, didn’t have much of a life outside of work, didn’t have time for friends and family, and at the end of the day didn’t even have any savings to show for my efforts. Why?
Because I was spending every penny I earned on a fancy apartment in upscale Dubai, buying fancy clothes – I thought people would take me more seriously for it – and spending truckloads on a fancy car and gadgets.
While it’s good to improve your lifestyle when you can, if you’re constantly looking for ways to spend your money, you’re destined for failure.
Stop thinking about ways to increase your expenses as soon as you get a raise. Instead, work on saving first, and spending later.
Robert Kiyosaki, author of Rich Dad Poor Dad, says, ‘Pay yourself first.’ Whether it’s an investment in real-estate or side hustle, or saving 20% or more of your earnings, do that first and take care of the expenses second.
Only 5% of the poor saved 10% of their income, according to this 5-year study. None saved over 20%. Certain habits keep the poor, poor. 93% admitted they never budgeted their spending.
66% admitted they were not frugal with their money. They also had a bad habit of spontaneous spending.
88% of the poor in the study had $5000 or more of credit card debt.
You don’t value your time
People often don’t realize it but time is a lot more precious than even money. The rich understand this all too well. They invest their time wisely in building a notable career or multiple side incomes.
According to this study, here’s what’s draining the time of most people;
- 77% of the poor people admitted to watching more than 1 hour of TV every day. They prefer reality TV. While less than 67% of the rich watch less than an hour each day.
- 74% of the poor people surfed the internet a lot more than was needed – more than an hour a day – while 63% of the rich spent less than an hour each day on the internet. This freed up more time to invest in self-education.
- Conversely, only 11% of the rich said they read for entertainment. Most of the rich surveyed read biographies, books on career, history, money, and self-help.
You’re always waiting to start your journey of success
How can you start your journey of success when you can’t move beyond the starting line? Whether it is fear, lack of capital or anything else; there’s no better time to start a business than now.
While you’re worried about not having enough capital, somebody is being resourceful about whatever little they have and building something valuable from it.
While you’re complaining about having a ton of challenges, someone is solving those very same problems, helping society become better, and earning money in the process.
The answer to all these and similar problems is this; start today, be resourceful and cast your fear aside. More importantly, anything that you want to do has already been done by someone else.
You can learn insider secrets from biographies or by talking to people who are already doing what you want to do. Learn, bootstrap and go.
s, call up good buddies for a day trip, go to a karaoke bar and sing like a madman. We all need a break, especially when things like this happen. It’s tough in the working world I’m sure, but don’t let that be an excuse for pushing yourself to the limit. No one can take care of you for you. Love yourself a little more through this hard time and accept yourself. You are no lesser than anyone else, just because you lost someone dear, you definitely have a place here and tell yourself that you ARE important.
Read, Write, & Grow Young📖 