Your daily habits determine whether you build wealth or remain broke. Avoid these nine common money habits:

Taking advice from broke people: Only seek financial guidance from individuals who have already achieved the success you aspire to, such as mentors, expert coaches, or peers slightly ahead of you. Politely disregard advice from those without demonstrated success in the area.
Ignoring your bank account: Actively monitor your finances, as what you focus on tends to grow.
- Review your accounts daily.
- Automate financial tracking and budgeting using available tools or apps.
- Plan savings, expenses, and investments proactively.
- Set up financial alerts (sensors) for transactions or low balances.
Trying to get rich quick: Understand that sustainable wealth is built over time, not overnight. Avoid impulsive decisions driven by fear of missing out (FOMO) or ventures outside your expertise.
- Develop valuable, in-demand skills.
- Focus on solving real problems for businesses or customers who can pay.
- Learn to build a business, starting simply by selling a skill or service.
Trading time for money: Recognize the limitations of earning based solely on hours worked. Progress through these levels:
- Employee: Trading time directly for money.
- Entrepreneur: Trading money to buy back time (e.g., hiring help).
- Empire Builder: Trading money for more money (investing). Aim for this level.
Paying for status: Avoid buying things you cannot afford simply to impress others.
- Prioritize achieving your goals over external perception.
- Commit to living below your means.
- Develop the discipline to possess money without impulsively spending it.
- Choose not to participate in competitive consumption.
Impulse buying: Cultivate delayed gratification, as impulsive purchases often hinder progress towards significant goals.
- Recognize that the financial system often encourages impulsive spending through easy credit and leases; resist this pressure.
- Tie large, desirable purchases to the achievement of specific goals as a reward.
Spending time to save money: Value your time highly; use money strategically to save time.
- Calculate your approximate hourly value and determine your "buyback rate" (roughly one-quarter of your hourly value).
- Delegate tasks that you can pay someone else to do for less than your buyback rate.
- Reinvest the saved time into higher-value activities like skill development, business growth, or self-care.
Playing defense: Focus primarily on increasing your income (offense) rather than solely on cutting expenses (defense). You cannot save your way to significant wealth.
- Adopt an abundance mindset, focusing on growth and opportunity.
- Invest consistently in your skills, your professional network, and strategies to buy back your time.
Making money the goal: View money as a tool, not the ultimate objective. True fulfillment comes from purpose.
- Define what you want to achieve with money beyond just accumulation.
- Discover your purpose, often linked to overcoming personal challenges and helping others with similar struggles.
- Integrate giving back and contributing to your purpose into your financial journey.

Focus on your potential, leverage available resources, and adopt an offensive strategy towards building wealth, viewing any setbacks as valuable lessons.

9 Money Habits That Keep You Broke

9 Money Habits That Keep You Broke

Summary