These 7 Money Habits Are Keeping You POOR
Summary
- Recognize habits that are preventing financial success and consciously work to break them.
- Avoid the mentality of sacrificing tomorrow's financial security for today's gratification, which often leads to living paycheck to paycheck.
- Master impulse control to improve financial habits; resist the urge to spend on desires that are not logical.
- Confront the discomfort of checking your bank account; avoiding it only increases anxiety and hinders financial progress.
- Tackle debt head-on; avoid the mindset of ignoring debt, as it can hinder real financial growth.
- Create a personal balance sheet to keep track of liabilities and assets and use it to plan debt repayment and financial decisions.
- Spend money to save time or promote growth; use money to gain experiences or education that would take too long to acquire otherwise.
- Commit a percentage of your income to save before spending; automate transfers into savings to ensure this happens.
- Resist the urge to try looking rich on social media when the reality doesn't match; it's better to work on being financially stable than to put up a false front.
- Move out of your comfort zone in terms of the income you earn; don't settle for complacency but strive for more to have greater impact and fulfillment.
- Surround yourself with people who inspire you to earn and achieve more rather than those who keep you comfortable with where you are currently.
Video
How To Take Action
To improve your money habits, follow these steps:
- Break Bad Habits: Notice any habits that waste money, like buying things you don't need. Stop these actions to save money for the future.
- Control Impulses: Try to say no to things you want but don't need. Practice this until it gets easier to avoid unnecessary spending.
- Check Bank Accounts: Don't be scared to look at your bank account. Check it often so you know how much you have and can plan better.
- Pay Down Debt: Make a list of any money you owe and start paying it back little by little. This helps you use money smarter in the long run.
- Use Money Wisely: Sometimes, spend money on learning or experiences that save you time or help you grow.
- Save Before Spending: Right after you get some money, move some into savings. This way, you always save a bit and it grows over time.
- Be Real on Social Media: Don't try to show off with things you don't have. Be true to yourself and focus on saving and earning more money.
- Grow Your Income: Always look for ways to earn more, and don't get too comfortable with what you make now. Push yourself to do better.
- Choose Inspiring Friends: Spend time with people who motivate you to reach higher and earn more, instead of those who make you feel okay with staying the same.
Follow these steps, and you'll be on your way to managing your money better!
Quotes
"Sacrificing tomorrow for today is a habit that people have in a lot of different areas of their life, it just happens to come out in money"
– Leila Hormozi
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"Just because you want something doesn't mean you should do anything about it"
– Leila Hormozi
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"Whatever we avoid expands, whatever we confront diminishes"
– Leila Hormozi
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"Money is a tool to accumulate education, experience, time, resources that cannot be replenished while money can"
– Leila Hormozi
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"People are more concerned with looking rich than actually being rich"
– Leila Hormozi
