馃攳
8 Money Habits That Keep You Poor (STOP SELF SABOTAGE) - YouTube
Channel: It's Your Girl Rose
[0]
most of what we do on a daily basis is
automatic like brushing your teeth you
[4]
don't even think about it and most of
the time you don't even realize that
[7]
you're doing it this is especially true
with how you handle your money in this
[11]
video I'm gonna talk about eight money
habits that keep you poor before
[16]
recognizing these eight bad money habits
I was always in debt and had trouble
[20]
saving any money but once I realized
what I was doing I started replacing bad
[25]
money habits with good money habits and
that's exactly what helped me pay off
[29]
$80,000 of student loans in just a few
years and to finally start investing my
[34]
money so that I could work smarter not
harder your habits have ripple effects
[39]
that get compounded over time and they
ultimately determine who you become and
[44]
whether you'll end up rich or poor
that's why it's super important to
[48]
recognize any bad money habits you have
early on and replace them with good
[54]
money habits so hit that like button and
let's get started money habit number one
[59]
is paying yourself last here's what I
mean by this as soon as you get paid you
[64]
pay your rent your phone bill your gym
membership you go out to dinner you buy
[68]
something nice for yourself and you're
planning to save if there's any money
[72]
left at the end of the month problem is
there's never any money left to save
[76]
sound familiar
people who get ahead financially do the
[80]
exact opposite they pay themselves first
that means that before they start paying
[85]
their bills swiping their cards left and
right and giving money to everyone else
[89]
in their mother except for themselves
they put a portion of everything they
[93]
make into their own pockets first then
they pay their bills and live on what's
[98]
left they prioritize making themselves
richer versus making other people richer
[103]
people who are good at saving money all
understand something called Parkinson's
[108]
law so Parkinson's law is the principle
that demands will always expand to
[114]
consume all available resources that's
why if you have a week to finish a
[118]
project you end up taking all that time
to finish it and you were probably
[121]
pretty inefficient with your time
whereas if you have just one hour to
[126]
finish that same project you'll be super
focused and efficient
[129]
and still get it done so work expands to
consume all available time and it's the
[135]
same with money you're spending will
expand to consume all available money
[140]
whether you have a hundred dollars or a
hundred thousand dollars your expenses
[145]
will keep increasing to consume all the
money that you have that's why making
[150]
more and more money isn't always the
answer
[152]
and saving money after after you do all
your spending is just not gonna work
[156]
because your spending will always rise
to just eat up all that money you got to
[161]
pay yourself first you gotta treat
saving money like a bill so as soon as
[166]
you get paid commit to setting aside 10%
or whatever percentage that you can
[170]
handle and put that towards savings and
investments and then just live on what's
[175]
left so if you want to stop letting
money slip through your fingers and you
[179]
actually want to start keeping some of
what you make for yourself then give up
[183]
money habit number one for good the next
money habit to give up it's trying to
[187]
keep up with friends who have expensive
tastes so do you have friends who always
[192]
want you to go out to expensive
restaurants and go shopping with them
[196]
and go on trips with them and stay in
nice hotels so if you have friends with
[199]
bigger budgets and yours then it's okay
to be authentic and say just you know
[204]
hey I can't I can't do that because I'm
working towards some financial goals
[208]
right now and I need to save money it's
out of my budget if there are real
[211]
friends they'll understand
everyone has very different levels of
[215]
tastes as well as very different budgets
so trying to keep up with everyone
[219]
around you is going to leave you broke
and in debt this includes friends as
[224]
well as people you see on social media
the reality is the average American has
[229]
very little in savings and an average of
thirty eight thousand dollars in debt
[234]
and that's not even including mortgages
so a lot of what you see in terms of
[239]
amazing lifestyles on social media and
whatever is often just an illusion
[243]
in fact I personally know someone who is
always posting Instagram photos of
[249]
herself traveling to all kinds of exotic
locations and it really looks like she
[254]
has this glamorous awesome life but the
reality is she has $20,000 in credit
[259]
card debt and has
zero in savings and investments so don't
[264]
be fooled a lot of what you see is not
real and chasing experiences just so you
[270]
can post a cool photo on Instagram or
look good to everybody else is a recipe
[274]
for ending up broke I think it basically
comes down to this
[278]
would you rather look rich or would you
rather be rich if you dream about
[282]
becoming financially independent one day
you have to stop caring what everyone
[287]
else thinks about you because no one
else is gonna make it happen for you but
[290]
you just learn how to speak up for
yourself don't be afraid to turn down
[295]
invitations or don't be afraid to just
adjust cheaper activities for you and
[300]
your friends because chances are people
will respect you for having your
[303]
priorities straight and it'll probably
inspire them to reassess their financial
[308]
priorities as well the third money habit
to give up it's putting everything on
[313]
your credit card for the cash back
rewards and award miles now don't get me
[317]
wrong
credit cards are amazing I love my
[321]
credit card I haven't paid for a flight
in years thanks to the award miles that
[326]
I rack up on my United explorer card but
often times I find that people end up
[330]
spending way more on their credit card
than they would have spent otherwise and
[335]
that basically just cancels out all the
benefits of having these credit card
[339]
rewards I'm freakin guilty of this as
well when I'm considering whether to
[343]
make a purchase or not sometimes I find
myself justifying it because I'm like
[348]
hey well at least I'll get miles for it
and this is even if I can't actually
[352]
afford it so this is a very very very
slippery slope ever since I realized
[358]
this pattern I've just stopped putting
everything on my card and here's what I
[362]
do instead for everyday small items like
coffees and cab rides I just pay for it
[367]
with my debit card in cash but if
there's anything that's a hundred
[372]
dollars or more like facials and hotels
courses things like that I basically put
[377]
it on my credit card to get the award
miles but then I pay it off immediately
[381]
like within seconds of making the
purchase and I just do it all on my
[385]
phone that way it forces me to only buy
things I can afford to pay for in cash
[390]
while also allowing me to get those
vials and turn all those amazing credit
[395]
card benefits before I started doing it
this way I would usually just rack up a
[399]
balance and then every month I just be
shocked at how much I'd spent because
[404]
putting things on plastic really has a
way of just making you spend a little to
[408]
mindlessly especially if you're
justifying your spending because of the
[412]
rewards so the money habit to give up is
to make sure you only put things on your
[417]
rewards credit card if you have the
money to pay for it in cash and don't
[421]
justify the purchase just because of the
points or the or miles money habit
[426]
number four is having disorganized
finances having disorganized finances is
[431]
basically another way of keeping your
head in the sand if you have credit
[435]
cards open everywhere student loans that
you don't really know the balance for
[439]
and you're not really sure what you're
spending every month then it's really
[443]
time to consolidate so there's a lot of
really awesome apps out there that make
[447]
it super easy to track all your
financial stuff for example I used to
[451]
use mint and I really liked it you can
connect your bank accounts and your
[455]
credit cards and they'll look at your
spending and your income and tell you
[459]
what you're spending looks like every
month and you can also put in all your
[462]
accounts and look at your network than
how it changes over time and it really
[466]
only takes a few minutes to setup it's
totally worth your time and ever since
[470]
I've actually switched over to tracking
my finances in a spreadsheet versus in
[474]
apps cuz I'm just a big nerd and I love
my spreadsheets and I look at my
[478]
spreadsheet to update my net worth every
month that way I can see the progress
[483]
that I'm making month by month and not
only is this hugely motivating but it
[488]
also forces me to keep my finances very
organized because I know where all my
[492]
money is at all times something also
helps with keeping your finances
[495]
organized is choosing a financial
institution that offers a wide range of
[501]
services so that you can do all your
financial stuff in one place the less
[506]
online usernames and passwords you have
to keep track of the better for example
[511]
I have my personal checking account as
well as most of my investment accounts
[515]
like my Roth IRA and my
say and blah blah blah I have all that
[519]
fidelity so I could access all my
financial stuff with one username and it
[525]
was really convenient another place that
offers a full suite of services is
[529]
betterment which offers a checking
account a high-yield savings account as
[535]
well as different investment accounts
for all your financial goals either way
[539]
with technology and all these amazing
new platforms it's really not hard to
[544]
get and stay organized with your
finances the key is to just get up that
[549]
courage to really look at where you
stand financially and I know it can be a
[553]
humbling and sobering moment for some
people but until you know what your
[557]
starting point is it's impossible to get
to where you want to be you know how can
[562]
you get to where you want to be if you
don't know where you are now so give up
[565]
the habit of staying confused about your
finances build a habit of staying
[569]
organized and looking at your numbers
regularly money habit number five is
[574]
numbing yourself to debts we live in a
society where practically everybody has
[579]
debt it's become totally normal for
someone in their 20s to have tens of
[584]
thousands of dollars of student loan
debt and it's totally normal for someone
[588]
in their 40s to have a mortgage a car
loan credit card debt and possibly even
[595]
be paying off their student loans still
but listen up just because everyone else
[600]
lives with debt doesn't make it okay for
you to live with debt either when I was
[604]
applying to colleges I had the option to
go to USC which is a school in LA on a
[609]
full ride for my tuition however the
school that I really wanted to go to was
[615]
NYU and I chose to go to NYU because
that's the school that I really wanted
[620]
to go to except that I didn't get
anywhere near as much in scholarships to
[623]
NYU as I did to USC and honestly
sometimes I wonder where I would be if I
[630]
just gone to USC and didn't graduate
with student loans don't get me wrong I
[633]
don't have any regrets I really loved
going to NYU
[637]
but because debt is so normalized in our
society I just didn't even think twice
[641]
about signing away my life to student
loans as an eighteen year old it's crazy
[646]
bottom line don't get into debt if you
don't have to
[650]
just pay for things in cash don't do
things if you can't afford it don't go
[654]
into debt for college and months unless
you absolutely have to and you know you
[658]
you'll get a job that will allow you to
pay that off quickly don't get a car
[663]
loan to buy a car
don't get a mortgage if you're still
[666]
paying off student loans it's just too
much America is one of the wealthiest
[670]
countries in the world yet somehow it's
considered ok to have crop loads of debt
[675]
these days the status quo is to live
with debt but don't settle for the
[680]
status quo do whatever you need to do to
live debt-free money habit number six is
[685]
paying extra due to lack of planning I
used to be the queen of cheap $10
[691]
umbrellas because I always forgot to
check the weather and I just end up
[695]
getting caught in the rain and having to
run into a drugstore to just buy another
[700]
umbrella despite having like multiple
umbrellas at home not planning in
[704]
advance and being caught unprepared
always ends up costing you money so this
[709]
could be things like having to take an
uber instead of using your subway card
[712]
it could also be like paying overdraft
fees because you didn't check your
[716]
account balance
another way is you put things on a
[719]
credit card and you just end up paying
all these interest charges because you
[722]
didn't set money aside for unexpected
unexpected expenses no I'm all about
[727]
Yolo and living spontaneously but if
you're always having to buy things you
[732]
already have at home or just paying
extra fees and interest because you're
[736]
unprepared then just take a few extra
minutes to plan ahead check the weather
[741]
before you leave the house leave buffer
time in between appointments look at
[745]
your account balance every so often and
things like that even just a little bit
[749]
of planning will save you tons of money
and at the end of the day having money
[753]
in the bank is what allows you to really
Yolo as much as you want money habit
[758]
number seven is paying too much in taxes
taxes are gonna be the single biggest
[763]
expense in your lifetime so why not do
it you can to cut down on your tax bill
[768]
most of the tax blue bowls are for the
rich for people who own assets and
[772]
businesses but there are a lot of tax
loopholes available to the average
[777]
person as well for example most people
have a 401
[781]
through their employer and contributing
to your 401k is a way to directly reduce
[786]
your taxable income the HSA is another
way to reduce your taxable income and
[791]
also everyone is eligible to open an IRA
either a traditional IRA or a Roth IRA
[796]
and these are investment accounts that
shelter your dividends and profits from
[800]
taxes so I'll talk more about ways to
cut down on your tax bill in this video
[804]
right here so definitely check it out to
learn more because there are a lot of
[809]
ways you can start paying less taxes
starting today
[812]
bad money habit number eight is putting
off investing until you have more money
[817]
like I mentioned in my first tip putting
things off like saving money and
[822]
investing for the future that is a very
slippery slope you might be thinking
[826]
that you'll start doing it one day when
you have more money but more often than
[830]
not that becomes a never-ending cycle of
procrastination and excuses there's
[835]
always gonna be reasons why you can't
invest not enough money not enough
[839]
knowledge not enough time other
priorities etc etc etc but the longer
[845]
you put off investing the harder you'll
have to work to get to the same level of
[850]
financial freedom as someone who starts
investing earlier someone who starts
[854]
investing at age 20 can become a
millionaire by age 50 by investing just
[860]
one hundred eighty thousand dollars of
their own money however if they were to
[865]
wait until age thirty to start investing
they would need to invest almost twice
[870]
as much of their own money to reach
millionaire status by age fifty which
[874]
means the sooner you start the less
heavy lifting you have to do and the
[878]
less of your own money it takes to get
to a millionaire even if it's just fifty
[883]
dollars a month
start investing now don't wait it's
[888]
really easy to get started investing if
you just stick your money in some
[891]
low-cost index funds and I talk more
about how to pick good index funds in
[896]
this video right here so check it out to
learn more and I also have a ton of
[900]
great investing tutorials on my channel
so just set aside a weekend to learn and
[904]
get started you'll be glad you started
when you did if the idea of saving and
[909]
your money just isn't fun for you then
just try to reframe how you think about
[913]
it it's not about discipline and
deprivation it's about taking care of
[918]
future you it's a form of self-care and
self-care is fun because it makes you
[924]
feel good and makes your life so much
better if you've recognized yourself
[927]
doing any of these money habits just be
gentle with yourself you know don't beat
[932]
yourself up about it
because most of us don't learn this
[935]
stuff in school and we don't learn it
from our parents
[938]
most of us people who have good money
habits usually just learn it the hard
[942]
way by screwing up and wanting to do
better I'm definitely not perfect by any
[946]
means either so even though I'm a
youtuber that talks about money a lot of
[952]
what I talked about in this video is
stuff that I needed to be reminded of as
[955]
well it's all about having the awareness
and the financial literacy to notice
[960]
whether your daily actions bring you
closer to your financial goals or take
[964]
you further from your financial goals
and it's never too late to replace bad
[968]
money habits with good money habits and
to just improve your relationship with
[973]
money so if you want to keep the ball
rolling make sure to check out my
[977]
channel for more videos to inspire you
and teach you more about money please
[981]
like this video if you liked it and I
hope you'll subscribe to my channel
[985]
because I'd love to connect with you
again I post new money and investing
Most Recent Videos:
You can go back to the homepage right here: Homepage