could lose your source of income and survive ten years.
Money is good. People that say that money is the root of all evil are very much mistaken. You can only create money by offering a product or service to others. 99 times out of 100 this product or service is a positive one. I would say that poverty is the root of all evil, which is a lack of money. People don’t tend to burgle houses when they are wealthy. Poor people are far more likely to do this.
Chapter 19
Habits
Your money habits will either make or break you financially. Your financial future is determined by how much you earn, and then what you do with that money. People that earn millions every year can soon go bankrupt if they spend millions every year. People that earn twenty thousand a year can become wealthy if they spend less than they make and invest the difference.
People that have won tens of millions on the lottery that weren’t financially literate have become broke within a few short years. This is because of their habits.
What are your money habits? Do you save ten percent of what you earn every month? Do you spend over your means every month because you have to have the latest gadget? Do you invest in sound investments? Do you gamble all of your money at the casino or bookmakers?
Here’s one habit you should start: Keep strict accounts every month so that you know where all of your money is going.
Here’s one habit you should stop: Spending money on credit cards. I know this one is difficult, especially if you’re used to treating yourself all of the time, but you have to stop it.
Creating habits takes time, but if you sincerely want to change your financial life, you must do it. What are the habits of people that are broke? Let’s have a look (I used to be one of them so I know these pretty well).
Broke People’s Habits
Spending more than they earn. If you earn £20,000 a year, and spend £24,000 a year, how much money can you accumulate? The answer is zero. Also, not only can you accumulate zero, you will be in debt for the rest of your life if you don’t change this habit.
Having unnecessary expenses. For example, cable or satellite TV, expensive gym or club memberships, owning cars they can’t really afford with massive monthly payments, going out for expensive meals. You get the picture.
Not keeping accounts. If you don’t know how much you’re spending on rent/mortgage, gas/electric, utilities, food, petrol, taxes, paying off debt, etc, then how will you know what to cut out or reduce?
Trying to look rich. This is a big one. Did you know that most of the expensive watches are sold to people that aren’t wealthy? The most popular watch for American millionaires is a Seiko. So who’s buying all of the Rolex’s? The people that are trying to look rich that’s who. Don’t be one of them (unless you are rich!)
Not planning. If you want something, then plan and save for it. Set yourself a goal of when you want it, then work out how you can afford it and start planning and saving.
Relying on their sole source of income for all of their income. If you only get paid from your job, you’re risking all of your income from one place. Create some more sources of income!
Wasting time. This is the biggest one. If you’re wasting your time, you can never get it back. Are you going to the pub instead of working on a business idea? Are you sat in front of the TV instead of learning new skills? Are you spending all of your time socialising, instead of planning your future and being productive? If you are, you will stay where you are. You’re either climbing or you’re sliding. You can’t waste time AND move forward. You have to use your time productively to move you towards your goals.
Wealthy People’s Habits
Planning where they are going to put their money, and what they are going to do with their money. Allocating it towards things that will
Money is good. People that say that money is the root of all evil are very much mistaken. You can only create money by offering a product or service to others. 99 times out of 100 this product or service is a positive one. I would say that poverty is the root of all evil, which is a lack of money. People don’t tend to burgle houses when they are wealthy. Poor people are far more likely to do this.
Chapter 19
Habits
Your money habits will either make or break you financially. Your financial future is determined by how much you earn, and then what you do with that money. People that earn millions every year can soon go bankrupt if they spend millions every year. People that earn twenty thousand a year can become wealthy if they spend less than they make and invest the difference.
People that have won tens of millions on the lottery that weren’t financially literate have become broke within a few short years. This is because of their habits.
What are your money habits? Do you save ten percent of what you earn every month? Do you spend over your means every month because you have to have the latest gadget? Do you invest in sound investments? Do you gamble all of your money at the casino or bookmakers?
Here’s one habit you should start: Keep strict accounts every month so that you know where all of your money is going.
Here’s one habit you should stop: Spending money on credit cards. I know this one is difficult, especially if you’re used to treating yourself all of the time, but you have to stop it.
Creating habits takes time, but if you sincerely want to change your financial life, you must do it. What are the habits of people that are broke? Let’s have a look (I used to be one of them so I know these pretty well).
Broke People’s Habits
Spending more than they earn. If you earn £20,000 a year, and spend £24,000 a year, how much money can you accumulate? The answer is zero. Also, not only can you accumulate zero, you will be in debt for the rest of your life if you don’t change this habit.
Having unnecessary expenses. For example, cable or satellite TV, expensive gym or club memberships, owning cars they can’t really afford with massive monthly payments, going out for expensive meals. You get the picture.
Not keeping accounts. If you don’t know how much you’re spending on rent/mortgage, gas/electric, utilities, food, petrol, taxes, paying off debt, etc, then how will you know what to cut out or reduce?
Trying to look rich. This is a big one. Did you know that most of the expensive watches are sold to people that aren’t wealthy? The most popular watch for American millionaires is a Seiko. So who’s buying all of the Rolex’s? The people that are trying to look rich that’s who. Don’t be one of them (unless you are rich!)
Not planning. If you want something, then plan and save for it. Set yourself a goal of when you want it, then work out how you can afford it and start planning and saving.
Relying on their sole source of income for all of their income. If you only get paid from your job, you’re risking all of your income from one place. Create some more sources of income!
Wasting time. This is the biggest one. If you’re wasting your time, you can never get it back. Are you going to the pub instead of working on a business idea? Are you sat in front of the TV instead of learning new skills? Are you spending all of your time socialising, instead of planning your future and being productive? If you are, you will stay where you are. You’re either climbing or you’re sliding. You can’t waste time AND move forward. You have to use your time productively to move you towards your goals.
Wealthy People’s Habits
Planning where they are going to put their money, and what they are going to do with their money. Allocating it towards things that will
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