People often think making a lot of money is difficult, and they are right, I can tell
you that from my personal experience.
But what usually happens is that people usually make silly mistakes along the way that prevent
them from getting rich even when they are making a lot of money.How do I know that I
have made these mistakes and have learned the lesson?
When I was in college I use to make just enough to pay all my bills and I use to think that
if I just make twice the amount that I currently make, I will be living like a king.
At least that's what I thought.
But in reality, even when I started making multiple times more, things didn't really
change.
Yes, of course, I stopped worrying about how am I going to pay my rent next month.
But I didn't really notice a significant change in my lifestyle, but more importantly, I didn't
feel like I am rich.
After analyzing my spending habits, I realized that the problem wasn’t in how much I make
but rather silly mistakes that kept me struggle financially.
So let me share them with you.
Number one!
You rationalize when you overspend
When you live paycheck to paycheck, you imagine that when you will start making more money,
you will start investing, but what happens often is that you will start spending that
money elsewhere by the name of investing.
You will start taking an uber instead of a bus, or eating the exact same meal at a more
expensive restaurant or just buy more clothes that you will never wear.
The worst part about is that, in order not to feel bad about yourself when you waste
so much, you will start rationalizing that you are investing in yourself when in reality
you are just wasting money.
I am not against living comfortably or going to expensive places.
I myself do that every now and then.
What you have to understand is that overspending will keep you where you are!
Just because you are making a lot of money today, doesn't mean you it is going to stay
like that forever, so you have to manage that money responsibly and stop lying to yourself.
In fact, if you want to upgrade your standard of living or invest in yourself you don't
necessarily have to spend a fortune.
There are plenty of other better ways.
Number 2, Budgeting based on your current situation.
Time is such a strange thing that we don't even realize how fast it passes.
It feels like it was just yesterday when I was a little kid.
But now I am a grown-up adult, and one day I will be a grown-up old man.
What we don't consider is that, as we age, our expenses grow one way or another.
Just think about how much you use to spend 5 years ago.
I am sure that you use to spend much less. and you know what, 5 years from, your expenses
will even grow further.
So when you budget and plan your finances, do not only think about today but consider
your expenses 5 or 10 years from now.
You might start a family, have kids, so you will no longer be able to simply rent a room
or a little flat like you do now.
5 years looks like a long time, you think that you will figure something out by then,
but you won’t.
You will just keep postponing it until you find yourself in a situation where your expenses
are way more than your income, so you will be trapped in this paycheck to paycheck life.
and that leads us to mistake number 3
You keep postponing money management.
Most people do not consider money management important.
It looks so simple and easy that we often we ignorant.
I mean, look I have my paycheck and these are my usual expenses, what am I suppose to
manage!
When you don't have a clear understanding of where your money goes, you end up spending
it carelessly.
A dollar here and two there and then at the end of the month you will be wondering where
on earth did you spend your entire salary.
In order to avoid that, all that you have to do is to stop saying, I will figure it
out later and start managing your money.
Money management isn’t just about where are you going to spend your money but how.
How can you minimize your expenses?
How can you use your money more effectively that it earns more money?
These are the most common mistakes that I often see people are making.
Of course, it takes time and dedication but if you aren’t ready to manage your finances,
you shouldn’t be complaining in the first place.
and now go ahead and click on that bell button because if by any chance you are a subscriber
and you wanna see my next video, it seems like youtube isn’t going to notice unless
you do that.
Thanks for watching and I will see you in the next one.