9 Money Habits Keeping You Poor

The YouTube Creator Academy:

MONEY HABITS THAT KEEP YOU POOR:

Number 1: Lifestyle Inflation.
This is what happens when spending increases right alongside your income - so, as soon as you start making more - you begin spending more. So, instead of spending more money, do your very best to keep your expenses at the exact same level and save the difference. The longer you can delay making those ‘nicer’ lifestyle purchases, the more you’ll be able to invest for the future so that you won’t need to continue running on the workaholic treadmill.

Number 2: Not Tracking Your Expenses.
The people who don’t properly manage their money NEVER track their finances, and If you’re struggling with money right now, and NOT doing this step - YOU NEED TO. Consider this almost like your financial check engine light - tracking your spending will tell you what’s wrong so you can look deeper and fix it. 

Number 3: Borrowing The Maximum That You Can Afford.
The truth is, what you qualify for - and, what you can actually afford - are two ENTIRELY separate equations, and when it comes to your lifestyle, you should NEVER spend the maximum just because you can.

Number 4: Not Understanding Taxes
It's more important than ever to make sure that you have, at least, a basic understanding of how the tax system works so that you can fully utilize every single resource that’s designed to help you keep more money.

Number 5: Ignoring Retirement Accounts
Just like the law allows you to legally reduce your tax bill, it also entitles you to some financial incentives if you invest. For example, a Roth IRA, Traditional 401K, and HSA could be three accounts to look into further.

Number 6: Not Having More Than One Source Of Income
It was found that 65% of millionaires have 3 or more sources of income, so, with this in mind, you’re doing yourself a disservice if you aren’t actively working on diversifying your work. This is also going to dramatically help you build more wealth - since all of this should be “extra” money that you could further save and invest. 

Number 7: Being “Too Cheap” In The Wrong Areas.
Don’t let cost define your purchases when quality matters. There’s something called “The Boots Theory,” which suggests that a rich person can buy one expensive pair of boots that lasts a lifetime, while a poor person is forced to choose the cheaper pair that have to be replaced every few years, which - eventually adds up to way more money. So spend more money - upfront - if you'll get a long term savings.

Number 8: Not Planning For The Worst.
In this case, save enough money on the side so that - if you lose your job, you’ll be financially okay for the next 3-6 months. Make sure you have the proper home insurance so that you’re covered in the event of a disaster. Go get regular checkups so that, if you do get sick - you’ll catch it early. Spend the money to maintain your car so that it runs for another 100,000 miles.

Number 9: Not Having A Plan.
This means figuring out what you want to be doing, how much money you realistically need to live, and where your priorities are. I think most people would be shocked to learn that they don’t need tens of millions of dollars to live the life they think they want, or - they haven’t come to terms that running a global empire just isn’t for them.

My ENTIRE Camera and Recording Equipment:

[ryangray]

Bro unlocking his inner Andrew Tate with that title 💀

[BrandonMinguez]

Being cheap vs. being frugal is always a very important distinction and I’m happy you mentioned that here.

[SavageBunny]

First Kevin calls me poor, now Graham called me broke 😔

[AndreiJikh]

I feel more insulted than Graham's like button

[Dontdrinkblinkerfluidplease]

Unfortunately during the 2008 home crash, instead of buying up low-cost real estate, I was too busy with being in third grade.

[blubeary]

I think having relatively cheap hobbies is important especially when you are married with kids. When times gets depressing because of piles of work to be done, I think about what's on the priority of my favorite things to do, when is the fastest I can do it and I can be fully motivated again to finish the job. I'm going fishing this weekend and to the rest of you have a nice day!

[StopBeingSoldMedia]

These are all great points to keep in mind when trying to improve your financial situation. It's important to remember that being financially responsible isn't always easy, but it is necessary for building wealth and creating a stable future.

My question is: Which of these habits do you think is the most challenging to overcome, and why?

[JoshuaReigns]

Graham, you're doing excellent things to help others. Many thanks for contributing your time. And thanks also to those of you commenting on several other ways to increase wealth. Kudos to all of you.
-Steve

[zach]

I still get so excited when I get a real estate commission check until I remember I gotta deduct like 30% for taxes 😂😒

[livephysiology]

Graham makes an important point here about owning a beachfront property in Florida. Perhaps Graham could do a follow up video on how each individual defines financial success, and how to know when it has been achieved. Graham could also share about his own vision of financial success and whether he feels he is there or still has financial goals he has yet to achieve.

[dannymartial]

The dislike ratio is the reason why I look down on poor people. I used to be broke, the the difference between me and them, I actually listened to rich people to become rich myself. All you poor people can stay poor; in fact, I'm rooting for it.

[joseperez-igyu]

I have never seen anyone so full of wisdom as you Graham! My plan in life is to throw caution to the wind and worry about dying later!

[thefocuschic]

The one about sudden illness is sadly true.

[gcard]

Inflation and "real inflation" terrify me in terms of planning retirement, as it seems to eat my potential returns. I don't want to underestimate the effects of inflation. Can you offer any help with how to think about this, Graham?

By the way, thanks so much for all the fantastic info, which you present in an understandable, digestible manner. Thank you.

[ScottCugno]

Ahhh back to the good ole frugal Graham Stephen videos! I missed these types of content.

[chely]

Brought it back to the basics. Sometimes we need videos like these!

[StuartMacadam]

One thing which has saved my wife and I a lot of money recently has been cutting back on refined and processed foods. Less chips, less museli bars, less breakfast cereals and so on. Here in New Zealand, you would not believe how expensive that stuff is and how quickly it adds up. It may seem like $5 and $10 there but suddenly your food bill is $`50 more than you expected in a month and over $1, 000 in a year. Yes, fruit and veges are expensive too but at least they give you consistent energy and reduce your chances of getting sick or fat.

[conner_andrew]

Thanks, Ive been following steps similar to this, but having it drilled into my head makes me see my future more clearly

[bkucenski]

My goal has always been to keep my bills (things I have to pay) below half my take home pay. Subscriptions you can cancel anytime and variable expenses like food and clothes are not bills.

I'm currently at about 28%.

Baby Step 0 is getting away from employers that don't want to pay you and landlords that want to rob you. Get your income up and don't throw away so much money to a property you have no equity in.

[ChristianRB]

Key point for me was how I can arrange my retirement accounts and put money in them and that I need to use one of those platforms to track my money, also when necessary I’ll be grabbing that website.

Edit: I also want to imply all the other things but I either am or understood those things already. Glad this video brought some new point for me and hopefully others.