Today I am sharing with you the 10 money mistakes to avoid at all
costs so that you can have more money and make more money.
I am Tiffany Thomas with wealthy tiffany.com
and I achieved Financial Freedom and became a millionaire.
If you're looking to do one or both of those things, make sure and hit
that like button and to hit the subscribe button and we're going to
dive right in.
All right, if you wanna stay poor, go ahead and continue to make all
of these money mistakes, but if you don't, I am going to share with
you the mistake and then the way to fix it so that you can become
wealthy or become a millionaire.
Money mistake number one is not looking at your money.
So if you want to stay poor, then continue not looking at your money.
Don't figure out how much is coming in and how much is going out and
where it's going to.
Just go ahead and continue to spend all of your money or spend more
than you are even making.
This is a huge mistake that people make way too often.
By not looking at your money, you are completely avoiding your money
situation and that means you are not able to make progress to improve
your financial health.
Once you start looking at your money and seeing where you are spending
a lot of your money, you can make adjustments, you can make
improvements.
One way I like to look at my finances is by using a free app.
It's called Personal Capital.
You can hook your checking, your savings, your credit cards, your
mortgage, your 401k, everything possible all of your financial
accounts into personal capital, and that way you can see your full
financial picture in one place.
So it makes it super easy to take a look at your money to know where
you are financially and that way you can see if you are spending a lot
of money at Chipotle or Cafe Rio.
And once you start to realize how much money you are spending on
eating out, you can make adjustments.
You can say, Oh, I didn't realize I was spending that much money.
I better change some of my habits and start bringing my lunch to work
a few times a week.
And if personal capital is something you are interested in, I will
leave my referral link below, you can click on that to set up a free
account with Personal Capital and then you can start taking a look at
your finances.
Money mistake number two to avoid at all costs is keeping high
interest debt for as long as possible.
Apparently you wanted to pay a lot more for that pair of shoes or that
iPhone or that really cute dress than you originally planned because
you're paying a ton of interest for that original purchase.
So even though that dress may have been on sale, you are no longer
getting that sell price because you're paying so much in interest.
So just continue to pay off that credit card very slowly, make the
minimum payment each month and pay that 17% interest and continue to
have that compound over time.
But maybe you wanna start putting that money towards something else,
something that is going to make you money.
So you'll want to pay down your high interest debt as soon as possible
and then make sure that you are not using your credit card or going
into debt for things that aren't going to make you money.
Money mistake number three to avoid is not building up your credit.
So just never use any type of credit, keep a really low credit score
so then you have to pay even more for the most expensive purchases
because most likely you're going to put a house on credit or even a
car on credit and you're going to have to pay a really high interest
rate if you do not have a high credit score.
So continue not to build up your credit and you can pay even more and
more to creditors.
Or you could start to build up your credit score.
You could take one credit card, make sure that you use that credit
card, but pay it off in full every single month, not just make the
minimum payment like mistake number two, but pay it off in full so you
are not paying any interest and that way it shows the creditors that
you can handle debt.
And if you wanna know other ways to build up your credit score, I
created another video for you.
I'll leave a link above and below.
Even though we may not agree with the whole credit rating system, we
need to play the game so that we can build up our credit score and not
have to pay as much an interest.
Money mistake number four to avoid at all costs is not having an
emergency fund.
So if you don't have an emergency fund and an emergency comes up, then
you'll just swipe your credit card and pay that off over time and
continue to rack up that credit card debt.
Or you could set a specific amount that you want to have in your
emergency fund and don't touch that money until you have an emergency.
And once you do spend that money, then make sure and build that
emergency fund back up again.
That way we don't have to go into debt for emergencies.
And if you want to know how I figure out how much to keep in my
emergency fund, I have another video for you.
I'll leave a link above and below.
Money mistake number five kind of goes along with the money mistake
number four, and this one is keeping all of your money in a savings
account.
So if you never want your money to work for you and you always want to
work for the money, then just keep saving your money and put it in a
savings account.
I know I was guilty of this for a while.
I was really good at saving my money and not so good at investing my
money, but once I switched over and became more of an investor, I knew
I had to continue down that path because that is how I was able to
build my wealth exponentially.
I was investing my money instead of just saving my money.
So while you want to have a certain amount for an emergency fund in
your savings, you don't wanna keep all of your money in your savings.
Once you hit that certain amount, start investing the rest of your
money.
And just as a side note, I like keeping my emergency fund in a high
interest savings account.
I like using Ally.
There are a few others out there, but if your money is just going to
be sitting in savings, make sure it is earning you a little bit of
money.
Comment below and tell me if you have your emergency fund in a high
interest savings account already.
Money mistake number six is never setting any money goals.
Don't plan to work toward anything.
Just keep going status quo and never set a money goal.
That way you don't have to worry about getting discouraged if you
don't reach that goal and you can just spend your money on whatever
you want to in the moment, or you could set a really specific
financial goal that you want to achieve and make a plan of action to
achieve that goal.
For example, when I wanted to buy one of my properties, I needed to
save up for a down payment.
So I set a specific amount that I wanted to have for my down payment
and I worked toward that.
And as I was tempted to spend my money on other things, I would think,
Man, I really, really wanna buy that next property as soon as
possible.
So I am not going to spend my money on clothes right now or eating out
or whatever it was that I was tempted to buy.
It really helped me stay focused on what I really wanted to
accomplish.
Comment below and tell me one of your money goals.
I am curious to know.
Money mistake number seven, to avoid at all costs is just spending
money whenever you want to and without really thinking about it or
without thinking about the consequences of spending that money.
And this kind of goes along with money mistake number six because if
you are setting specific goals, you will be less tempted to just spend
your money on whatever you want to.
So if you're not worried about the trade off and you don't really care
about money or whether you have the money to spend, just go ahead and
spend that money, swipe that credit card wherever you want to, or you
could be really intentional with your spending.
You could spend on your priorities.
It's not about deprivation, it's about prioritization.
If we really don't care about eating out that much, but we really love
traveling, then let's stop spending money on eating out and put that
money toward a vacation.
I know that's how I feel.
I would rather not eat out all of the time and put that money toward a
fun trip.
I've been able to travel to a lot of different places because that is
one of my priorities.
I really love traveling.
So I cut back on the rest of the things that I don't really enjoy and
I put that money toward traveling, and people have often asked me how
I'm able to travel so much and I don't have some high paying job.
It's because it's one of my priorities.
So I'm not wasting my money on things that are not important to me.
I'm focused on spending on what is important to me.
Someone could really love designer shoes and spend a thousand dollars
on two pairs of shoes and not really travel anywhere because they
don't really like traveling.
It's about your priorities.
So figure out what those are, spend on those and cut back on the rest.
Money mistake number eight, to avoid at all costs is to buy
liabilities before we buy assets.
Make sure that you are buying that brand new boat or that brand new
car before you buy your rental property.
Make sure that you have all of the latest gadgets and the most up to
date technology with the new phone and the new laptop, the new Apple
Watch.
Whatever it is, make sure that you are just buying those things that
are going to give you instant gratification before purchasing things
that are going to make money for you and then you can purchase those
liabilities with the assets.
This is a really big shift for a lot of people.
We really want to focus on buying those assets first and then the
liabilities.
We want to focus on saving up for that rental property and that way
once we are collecting cash flow every single month from that
property, that cash flow can buy that new car for us that we want.
So really start to think in terms of assets and liabilities.
Have your assets pay for your liabilities.
You could invest in the stock market.
You can buy an index fund that pays dividends or even an individual
stock that pays dividends and those dividends that you are receiving.
And once you purchase enough shares of that stock or that index fund,
then you can take those dividends that you'll be receiving and you can
pay for a subscription that you want.
Too many people are just focused on the instant gratification.
What can I have right now that is going to make me feel happy this
instant?
Rather than taking a step back and thinking, all right, how can I make
my money work for me instead of me always having to work for the
money?
Once we do that, once our money is working for us, then we can
continue to invest in things that are going to make our money work for
us, or we can choose to buy something that isn't going to make us
money, but that will bring us happiness.
For example, a new car.
We live in a world right now where we want everything right away.
We want it overnight and a lot of things we can buy on Amazon and get
them overnight, but one thing we cannot do is just have money
overnight.
We don't want to look at those get rich quick schemes.
If we are taking the mindset of get rich quick, we are most likely not
going to get rich quick.
We are going to spend a lot of money thinking that it's going to make
us rich quick, but we will end up just spending more money and more
money thinking, Oh, maybe this will make me rich quick or this will
make me rich quick.
Instead of thinking that way, think in the long term.
What do you know will actually make you rich?
For me, I know that is real estate and the stock market, so that is
why I chose to invest in both of those things.
I will take the get rich for sure over the get rich quick any day.
We know there are strategies that we can use to build our wealth over
time, and that is where I would rather focus my efforts because I know
that works and that get rich quick will most likely not work.
Money mistake number nine to avoid at all costs is not knowing how to
make money.
So just continue to live your life and work a minimum wage job and
collect that paycheck every two weeks.
Continue to struggle paying your bills, Never have any extra to buy
something a little nicer for yourself.
Never have any money to invest to make your money work for you.
Just continue with that status quo or you can figure out some skills
that are going to increase your income.
You can really focus in on marketing if that is what you would like to
do.
You can take some courses or find a mentor that is really good at
marketing and ask to work for them free.
Build up your skills and in particular income making skills.
And if you work a nine to five job and you really like that nine to
five job, but you would like to make more money, then figure out the
skill of negotiating your salary, asking for a raise.
What is something that applies directly to your situation?
What skill do you need to build in order to increase your income?
Figure out which skill that is, and then figure out how to improve
that skill so that you can increase your income so that you know how
to make money and how to make more money.
I even have some friends that I feel like they are selling themselves
short.
They think that they can't really get a better job, that they won't be
able to get a promotion or make a lot of money, but the reality is if
they just took the time to figure out what skillset they needed, then
they could improve that skillset and increase their income.
And money mistake number 10 we want to avoid at all costs is
continuing to ask poor people for money advice.
Yes, please continue to ask your broke uncle what he thinks about
investing in the stock market.
I know he's lost all of his money in the stock market, but go ahead
and ask him anyway you can get advice from him or ask that friend
that's really nice to you, that's very sweet, but has never invested
in real estate.
Yes, please ask her, should I buy a rental property?
Or ask your old coworker who's been stuck at the same job and the same
income for years, how to get a raise.
We don't wanna be asking people money advice that are not ahead of us,
not where we want to be.
So find the right person to ask money advice from.
And I know this is true because I have a really good friend who is
very successful with real estate investing, and when I was considering
buying my first rental property, I went to him.
I asked him all of the questions about investing in real estate.
He was where I wanted to be.
I didn't ask one of my best friends who always looked super cute and
well put together about investing in real estate.
I asked her about which outfit I should wear on my date.
Make sure you are asking the right people the right questions.
These are the 10 money mistakes to avoid at all costs.
Hopefully you found them helpful and you can know which ones you may
be guilty of and make some changes to improve your financial health
and become more wealthy.
Please hit that like button and share it with someone else who would
like to hear this information and to hit the subscribe button to
subscribe to my YouTube channel and to the little bell to get notified
on when I post new videos.
And if you wanna see even more content from me, make sure and check
out the videos on the side of the screen.
Thanks so much for watching.
I'll see you in the next video.