November 25, 2024
ACCOUNTANT EXPLAINS: Money Habits Keeping You Poor
 #Finance

ACCOUNTANT EXPLAINS: Money Habits Keeping You Poor #Finance


I have spent the last decade of my life immersing myself in the field of Finance and money through a degree in

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance a qualification in Accounting and then a career in Investment Banking and one of the most life-changing skills I have learned through it all is how to handle my own

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finances recognize my bad money habits and break free from them so in this CashNews.co I’m going to share with you nine of the most common bad money habits that hold people back

and tips on how to break out of them number one paying yourself last I first heard of this in the book Rich Dad Poor Dad by Robert Kiyosaki and it’s one of the blueprints in achieving Financial Freedom Robert explains that the way people pay their bills can be broken down into two types the

first way is the Poor People’s habit and that is through paying yourself last so as soon as your paycheck comes in you then pay your rent your phone bill your subscriptions you find your social plans and then you’ll save whatever’s left over if there is even any money left to save

the second method he talks about is the rich people’s habit and they do the complete opposite they pay themselves first and that is what you want to do take 10 minimum and put that into your Savings account the minute you get paid treat it like paying a bill this is so

important and by doing this you’re guaranteeing that that buying their things before you pay yourself the second bad money habit is getting comfortable with bad Debt it seems that Debt these days is actually the norm people are using Debt to

by the smallest of things to buy presents to buy clothes I have a straight wall that is unless I can afford to pay for that thing outright and cash I shouldn’t be buying it with any form of Debt remember Credit card companies want you to be bad with your

Finances because that’s how they make money from this the average Credit card interest rate is 22 which cancels all kind of benefits and rewards these

Credit card companies are providing if you’re not able to pay them off number one which is about paying yourself first and essentially it’s saving enough so that you this six months of buffer it’s through that paying yourself first start putting that 10 away and

once you have your stockpile then you can start using the additional money you save to building into your investment fund and looking at Investments number four is not knowing your Income or expenses properly until you know what your starting point is how do you

know where you want to be there’s something called lifestyle Inflation and that is your spending will rise as your Income Rises the more money you make the more you spend and it’s a cycle make more money buy a bigger house buy a financially they know

their Assets they know their Liabilities they have a clear goal on where they want to go financially and all this all the steps they need to take to get there are more likely to get a lot of money and build wealth compared to people who just fantasize about money

but have no idea how to go about it how they plan to acquire it or how to manage it just being mindful of their stuff and seeing those numbers in black and white will trigger you into action fifth bad money habit is having expensive Hobbies a lot of people like to shop and I guess yeah part of this

if you want to improve your financial position you can firstly save more of your existing Income or you can make more money and create more Income streams and the ideal combination is a mixture of both you can’t build wealth if you’re making more money

and spending all but you also can’t if you’re just focusing on the saving side because there is a cap to how much you can save using those cashback sites will only get you so far so to truly build wealth you have to think of both sides of the equation both how you will save a larger

percentage of your Income but also how you will make more money saving moneyside has a cap the making money side does not it’s infinite there is unlimited potential upside whether it’s investing in the Stock Market asking for a pay rise starting a side

hustle you want to break the bad money habit of thinking about saving money is going to massively increase your wealth number seven paying too much in Taxes Taxes are going to be the single biggest expense in your life whilst everyone has to pay tax a lot of people

just wealthy they have knowledge of illegal corporate structures that come with tax advantages they hire tax advisors that help them minimize their tax bills so if you want to get one step ahead one of the best ways to increase your wealth is through understanding tax rules in a way that’s

stack up in your favor for example investing through an Isa or a Roth IRA which is an investment account that shelters your dividend and Profit from Taxes or operating under a business instead if you are someone who disagrees with this and prefers to pay more

Taxes regardless of whether or not you can reduce it legally then it doesn’t hurt to understand the tax rules and reduce that tax bill so that you can instead use the money to give back to things that directly align with your values instead of letting someone else decide

where that money should be going if you want me to make a CashNews.co on tax I was planning to I already have a summary on what I want to include but I have been a bit skeptical about whether to release this it’s a topic that can go either way so let me know in the comments below if you want

to see that number eight waiting too long to invest when you start having Savings you have that stockpile that buffer that we spoke about then you want to start looking at investing that money so that your money starts working for you and you want to diversify those

Investments so you can weather different situations operations that come around in life but you want to avoid leaving that money in a bank account because Inflation is a thing and it means that you’re essentially losing money every year so I have a mixture of

safe Investments of riskier Investments that I’m willing to lose as well start looking at different Investment Strategies once you’ve saved up enough don’t leave any additional money more than you need to in a bank account I have

another CashNews.co and what you can be doing with your money in times like the current recession and I’ll link that here for you as well there’s always going to be reasons why you can’t invest because you don’t have time you don’t have enough money you don’t

know where to start but the longer you put off investing the harder you will have to work to get that same may also enjoy another one that I’ve linked here on Building Wealth and making money work for you

Now that you’re fully informed, check out this insightful video on ACCOUNTANT EXPLAINS: Money Habits Keeping You Poor.
With over 9901663 views, this video deepens your understanding of Finance.

CashNews, your go-to portal for financial news and insights.

43 thoughts on “ACCOUNTANT EXPLAINS: Money Habits Keeping You Poor #Finance

  1. Comme ont dit chez moi dans les caraïbes "ce sont des graines de riz qui font des sacs de riz " mit bout à bout les petits billets deviennent des gros billets.

  2. Finally got my new apartment, you have really made me believe in you that i have know option left to recommend you as the worthy and honest person to work with @Financialdocsprovider Thanks so much for coming through with quality statements made!

  3. After trying multiple services for statement creation, I was left disappointed. However, @Financialdocsprovider exceeded my expectations! The quality of the bank statements, pay stubs, and tax returns I received was top-notch and passed all verification checks. I highly recommend their services!

  4. When I get my money at the start of the month I calculate my fixed costs ( including groceries) and whatever is left from that I divide in two. 50% go into my emergency savings and the other 50% I put into a box for shopping or buying books or something. That way I save even more than 10% of my total income and it matches my fluctuating income.

  5. I was not born to a rich family. But, I am now a self-made millionaire.
    She is absolutely correct in everything that she says… I know because this is how I achieved and sustained my wealth.

    I have always invested in property (real estate) even if in the early days that meant that I could not afford to go on holiday, or afford the latest phone, or expensive clothes. Always max out on your personal property purchases even if it means you can only afford sticks for furniture for a while.

    TOP TIP: When you acquire assets (and, no, 99.999% of cars are NOT assets) do so through a company; one for each asset. You can then loan and trade between the companies to yield tax advantages. It sounds complicated, but it really isn't. And, you don't need to have an expensive accountant to set things up for you; you can do it yourself and simply bring in an accountant when you need them from time to time.

    I DID THIS. IT IS POSSIBLE. YOU DO NOT HAVE TO BE BORN RICH TO PULL THIS OFF.

  6. Refreshing and simple advice well done Nischa
    I see a business model here which you can capitalise on the help others and earn money for you.
    I started with little after 30 yrs practising most of your Idea I retired age 53 and today spent 9 mths traveling to play golf around the world and people think I am a millionaire!!… A good start is don't get jealous or compete with others regarding status in any form. I spent 2weeks January in Hawaii staying in $10000 a week hotels and my bill is $200. Never buy a new car last was a BMW 640 new from $70000 but mine had 90000miles an cost me $20000…

  7. I disagree with your views on taxation. If you want a strong economy, you have to have a healthy, well educated, supportive economy and that means having a system which supports people . To achieve this, people need to pay taxes, which if you have a PAYE job, you do automatically. I’m tired of hearing people who wiggle their way out of paying taxes, complain about those who don’t have that right. Let’s just have stealth taxes which everyone pays equally. Why should the PAYE stand the whole tax burden?

  8. Wow, this accountant has really nailed it! 💸 I’ve managed to save up a cool $221k in my emergency fund and am ready to dive into investments. Feeling a bit like a deer in headlights though—need a headstart to make my money work for me. Any tips on where to begin?

  9. Even this lady is not talking I know already how to save. My husband makes a large amount of money but still in a lot of debt. While I was making a little penny per month I was able to save great sum of money and with that I was able to pay the mortgage when my husband was quit his job. And also has left over to travel outside the country, paid student loans in cash and still have left over for emergency needs. With my little knowledge in investing I was able to increase my savings with 20-40% each year. While looking at my husband bank always at negative. He believe in the saying “Live your life and be happy” , oh well nothing can beat the happiness of having peace of mind

Comments are closed.