5 'Normal' Money Habits That Keep You Poor
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- čas přidán 11. 09. 2024
- Normal habits that make people broke.
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Over 40% of our daily actions are just mindless and habitual. And when it comes to personal finance, the percentage is probably much higher because many people make illogical financial decisions. In this video, I share five common money habits that people have the end up making them poor.
1. Spend Credit, Pay Off Debt
Many people choose to spend money they get from a credit lender in the form of a credit card or a loan, and this causes the prices to be inflated because the interest rates from these credit lenders are often high. A person might spend $575 on a TV using credit compared to spending $500 using their own money. To avoid this toxic financial habit, it is important to have patience in your life. It is important to take the time to save money and once you have enough money saved, then you can buy whatever you want without having to pay high interest rates.
2. Setting ‘No Money’ at -$10,000
No matter how bad you are with money, there comes a point where you no longer can make irresponsible, careless decisions, and you are forced to cut your spending to save money. And this is because you no longer have any access to money and you have "no money." The interesting thing about this is the idea of having "no money" varies from person to person. Many people believe that "no money" is when all of their credit cards are maxed out, all of their bills are behind, and their bank is charging them overdraft fees. They believe that having "no money" is when they no longer have any options. To avoid this toxic financial habit, start making decisions to cut spending and save money before you go below $0.
3. Getting Banks To Tell You What You Can Afford
The financial crisis of 2008 happened because banks were lending money to people who couldn't afford to meet their monthly payments. And this financial crisis was partly due to banks being irresponsible with lending, but it also occurred because people allowed the banks to tell them what they could afford. Time has passed, but the banks are still handing out money to anyone who is willing to take it regardless if they can actually afford it. If you let the banks tell you what you can afford, you will probably be left with payments that make it impossible to get ahead. To avoid this toxic financial habit, it is important to be responsible, look at your own financial situation, and decide what you can afford to bring in your life.
4. Paying Yourself Last
Many people are very self-less with their money. Once they get their paycheck, they give all their money to people whether that's for paying rent, a car payment, bills, or other payments. And once they have paid everyone, there is no money left for themselves. To avoid this toxic financial habit, it is important to determine a specific amount of money to set aside each paycheck to save or invest before you start paying your bills. When you do this, your bank accounts will constantly be rising.
5. Not Investing In The Stock Market
Many people are afraid of the stock market and choose to not invest because they think that they will lose all of their money overnight. Instead, they put money in a savings account, and although this is important, if all of your money is just sitting in a savings account, you will lose money each year due to inflation. It is important to learn about the stock market and a simple type of investment called "index funds," so that you can grow your money over time.
My video on index investing: • Index Investing For Be...
**I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make. Links above are affiliate links where if you click and order, I will receive a commission at no cost to you. **
What's another normal money habit that makes people poor?
Eating out too much 😊
not learning some basic DIY skills and getting a expensive tradesman in for everything.
Alcohol consumption. Especially, going out twice a week.
Maxing out the mortgage amount the bank gives you for a house. Then, they can't afford heat, cooling, and maintenance. House poor.
Time given to people who suck your energy out of you because are polite and too nice. Learning boundaries and assertiveness. 😊
Your videos have totally changed my finances this year. I have saved more money than I ever have and am closer and closer to being debt free. Thank you, Austin!
I'm glad to hear! Good luck on your journey!
Good for you. If you find that exciting wait until you are debt free and see how good it feels to save/invest then. So worth it!
@@sandrabryan9106
I Agree Sandra!!
Hi Austin, I am from India. I'm 33. My father never had debt, but he didn't save much, I think he was content with what we had. When covid hit, I was at -$30000, then I found Dave, and now I am around -10000. But, I will be debt free by the end of this Year. I am super glad that I found you. My expenses are pretty low now and I have more time for my family. Would love to meet you in person. Thanks for sharing your valuable thoughts! 🙏
Everyone needs more than their salary to be financial stable. The best thing to do with your money is to invest it rightly, because money left for saving always end up used with no returns.
If you don't find a means of multiplying your money, you will wake up one day and realize that the money you thought you had, had been exhausted. Investment is a ladder to climb the financial wall.
Am looking for something to venture into on a short term basis, I really need to create an alternate source of income, what do you think I should be buying?
Cryptocurrency investment, but you will need a professional guide on that.
FB..
Evelyn C. Sanders
Love watching your videos, so much common sense. #3 has driven me absolutely crazy for ages, the idea that the bank will tell you what you can afford is just nuts. When we bought our current house, we knew exactly what we wanted and what we wanted to afford. The bank kept trying to push us to buy a bigger house because "you can afford it". We didn't listen to them and stuck with our plan. That was in 2010! So obviously they learned nothing from the prior situation.
"We learn from history that we do not learn from history."
You put a lot of effort into these videos and it shows. Loyal follower.
Hello 👋👋
I Save Emergency Funds in two sets.
1. Emergency Funds for Touch.
2. Emergency Funds for No Touch 😊
I was told by my late father there are two types of people. One lives on what he earns., the other lives on what he takes home.
Spot on, Austin!!!
Invest the max in your Roth IRA each year. Your 60 yr old self will thank you.
Great video! I think it's so important to recognize these 'normal' money habits that can actually hold us back from financial success. It's time to break free from the mindset of just getting by and start building wealth instead. Looking forward to implementing some of these tips in my own life!
I use cash for pretty much everything. Don't have a credit card. Don't want or need one. No payments outside of my utilities & student loans
ur videos are great motivation to us
Love the sarcasm! Especially when you said we are SO SELFESS when we give all of our money away. 😏Yeah, right!
Yes Yes Yes Augustine Patience🙌🙌🙌!!! Know when to hold them know when fold them....
"Own GOLD / Silver" Store your wealth through troubled times. If you don't Hold it, you don't Own it!
INTRINSIC VALUE (REAL)
note: "It is tough to make Predictions espicially about the Future." Yogi Berra
I enjoy watching these videos with my lunch every week. I agree 100% with this mindset. I’m concerned about whether Klarna/clearpay and these buy now pay later schemes are being regulated properly?
Yeah, I think with the tech industry there are so many new things that it is hard to keep up with regulations
Excellent video 👍 love the sarcasm….it really hits home 🏴
Thankfully I’ve never been in awe of expensive cars, jewellery or handbags, when I was in minimum wage jobs I only ever bought what I could afford, I’ve seen so many ppl get into debt through other ppls bad advice or spending habits, a good thing to remember is- a £300 handbag will do the same job as a £10 handbag, a £300 watch will tell the same time as a £10’watch, don’t make yourself broke trying to look cool
OMG habit n3…
As I have what is considered a good job the bank landed me very easily the amount I was asking for my first house purchase … they even could have landed me more ! But the reality is now I’m not comfortable… thank god I paid back my debts to my friends and family and try to be frugal now I can now even save , but it has been a long road.
I wish I was told this then
Love it man. Thanks
Great channel!
I put my schooling on my credit card. I had no choice. I'm working on finishing by the end of summer. Currently the credit card is not charging interest. Once I'm done, there is a huge demand in the field for workers. We have little debt otherwise. I pay it by saving it. The entry level pay is higher than I can make without the certificate. In one year I can make a great deal more. Because it's online it was only a few thousand for everything. We live well below our means so the debt is shrinking. I dump money in savings and investing first.
Why would you do that? 😂 Yes, you did have a choice. You acted mindlessly! You're fuсked now...
Loved this! Can you make some videos on how to invest in the stock market for beginners?
Hey Mr., just a quick message to let you know that all of your videos that I have been watching tonight are posting 30 minute commercials/advertisements. With youtubers that I follow closely I let the video roll through the advertisements, but each of your videos that I’ve watched tonight, which is about four, have 20 - 30 minute Advertisements. feedback. Thanks for all the great work you do on CZcams. I’m learning so much.
Thanks for letting me know. CZcams actually chooses the ads that are placed in the video and targets it differently to each specific viewer based on their interests. I unfortunately have no control over what ads appear in the videos. Glad you're enjoying my videos!
@@ElAgustin one add on - I noticed long advertisements (really other videos as ads) are in others I follow too…. 🤷🏻♀️
Most your age didn’t fully live the 2008 crash. Keep telling people because history is, again, rhyming.
Yeah, my dad lost his job, we lost out house, and my mom's company shrunk by 60%. I was only like 13, but I do have some memory as so much changed. I love the quote, "We learn from history that we do not learn from history"
@@ElAgustin keep telling people. Our older kids saw us foreclosed on and unemployment, but they didn’t fully get what happened. I keep telling them the details now so they know; really know. I sometimes feel I should have given them economic details at the time, but they could only feel the devastation, not understand the big picture economics. Keep telling people, so they know it is happening again.
Regarding the economy, I used to know all the answers. Now somebody changed the questions.
Think for yourself and avoid getting sucked in to self-slavery, like most.
Another great video as usual Austin! Thank you for your insights - they create an enhanced level of financial awareness in your subscribers.
Austin, just the intro of this video🔥
The amount of work you put in it is absolutely appreciated!
I love how you explain the hows and whys.....
"If you develop patience".....awesome!!💯
I appreciate it the recognition. Sometimes it takes 3 hours to write the minute and a half intro!! Writing becomes easier after you do it so much, but it is still very challenging because you want to make it engaging! It shocks me how much I write now.
God’s favourite country 😉 🤣🤣
I toss money in various accounts...Xmas Club for upgrades on electric, savings for emergencies, investing for millionaire status, then the bills get paid. I did a side job and put $225 towards debt and $100 in emergency fund. I was that greedy. Can you believe how greedy I was?! 😀
Brilliant 👏🏻🏴
The inflation in Austria is currently at roughly 10 percent. How lucky it must be with only 2 percent!
📌 *Nice video, love how you take your time to educate your viewers. You gave me the mindset to invest my savings now I have made profits over $120k Right now and still making more , I am enjoying a good life with what I made investing. Indeed ‚building a Portfolio income (investing) through a licensed investment adviser is one out of many ways to earn passive income.*
Quite impressive but HOW!!?😊 I know it's possible, my colleague at work got her first investment return of 40K after two weeks and she quit the job , I would appreciate if you show me how to go about it..
My first experience with Mrs Jessica Madilyn gave me the assurance and confidence that has made me to invest without fear of losing, I really appreciate her efforts and transparency..
@@dennisstevenson7038 That's awesome. I dealt with crypto last year on Robinhood, tried some index but didn't take it out so I lost it by the end. Any consistent strategies?
@@deborahmartins1792 *I got Jessica Madilyn McMain recommendations on ABC News in December 2022 and started following her lead and made $23,450 in two week. Lost my job in April 2022 and right now I'm back on top again and I always win with her guidance.*
Mrs Jessica Madilyn McMain service is a talk of the town in Sydney Australia 🇦🇺 , I started with a little amount of 1ETH and she made huge returns and I have been constantly investing with her
I don't understand why mortgages exist. It seems like you should just be able to buy the house up front. But I guess it would be really expensive.
When a finance expert says the rate of 4 out of 10 could 'even triple' 🤔😄
That’s what I said like wtf where they do that at😂
This guy looks like the actor, Raph Macchio.
Great video, handsome host 👍
Love your content.
More invaluable wisdom from Austin Williams' channel. And for FREE!
Nope, you've watched ads, he got his payment. It's not free advice. Free cheese is only in a mouse trap, dear 😂 He claims as if you only need shelter, water and food to survive, forgetting clean air, medical expenses etc. He creates controversial click bait content, so you click and watch ads.
Another good video. Thank you for what you do.
🔥Keeping up with Augustine🔥 #101
If you pay upfront by saving, you still lose inflation %. Every year.
Wrong!
Thank you Austin! This video is invaluable! How can this video reach the younger people who are at university/ finishing Uni and starting out life independently?
In this case, what do you guys think? Better to buy a house right now or wait as the rent increased as much as we can afford?
There are a lot of other alternatives. You have way more options than those 2 choices you've provided. Start thinking outside the box.
Great points. So smart...
Good advice, but I don't agree with investing in the stock market. That's not good advice.
Great advice, Austin. 👍xo
Brilliant video!
Wheres video 100?? I missed it x
What is that thing he says in the beginning of every video? I’m not a Spanish speaker :/
Damas y caballeros = ladies and gentlemen
he knows! Shut it down!
Extremely good advice! I subscribed to your channel after watching two videos! Actually, I am already following most of your advice, but I could make my saved money grow by investing much more in for example index funds. I will make that a priority. Thanks for bringing that up!
Excellent Video Austin. I have a question for you. What is your take on the CBDC being implemented in the U.S.A.
Augustine- ain’t touching that can of evil economic worms!
Seriously though- Neil McCoy Ward goes deep on this. Lots of info if you want to deep dive into this.
2% ???????
I dont invest in crypto stocks or any other volatile vehicle that can and does fluctuate and lose value.
When I pay myself first, I will put like $50 each month (plus a little extra whenever I can) into a high interest earning online savings account such as Betterment. And the almost $1600 I have in there has never let me down in the two years Ive had it, and in fact continues to grow by a few dollars each month.
You a habitual line stepper
Oh, please don’t talk about using the bathroom. 😝
💩💩💩
We all do it! At least once a day!
But we don’t need to chat about it. Let’s keep things classy. I otherwise love this content.
0 ZERO % for 1 1/2 is how I survived
👍👍👍👍👍
For me investing in real estate was the best financial decision of my life. I did it when the market was down, of course.
Question... do you follow the CZcamsr... uneducated economist? He really gets in deep with details.
I don't, I'll check him out!
America is god’s favourite country? Really? Americans actually think this is true? What a bizarre, insular statement.
2008 is nothing compared to what's coming
Another great video as usual Austin! Thank you for your insights - they create an enhanced level of financial awareness in your subscribers.