In this episode, we are going to go over 7 money mistakes that keep you poor. Becoming aware of these ahead of time will allow you to prepare yourself financially for your future! If you’ve made any of these mistakes – it’s okay – we’re all learning!
✅ If you want the step-by-step guide on investing out-of-state to buy rental properties, check out our course Remote Rental Riches! https://courses.digitalnomadquest.com/p/remote-rental-riches
7 MONEY MISTAKES That Keep You POOR
Transcription
Below is a transcription of the podcast. This transcription was taken from Otter.ai so it might not be completely accurate:
mentioned depending on the location of your business bottle service can be anywhere from $300 for a small club, up to $7,500 for a well known club in a big city. And then in an article by Thrillist. They mentioned that the minimum price for bottle servers at the Las Vegas club x s, for example starts at $3,200 and the highest starts at $10,000. So even splitting this with friends is going to be a high amount the markup on bottle serves and drinks in general is just going to be so high and it gets even worse if you’re going to do that every single weekend. Now this leads into number four don’t buy things to just impress people. There’s a quote we buy things we don’t need with money. money we don’t have to impress people we don’t like you might have heard me say this before. But back in the day, when I started working on my first full time position where I was making $30,000 per year, I started thinking of time as money, for example, that equates to $15 an hour, if I bought something for $150, that would equate to 10 hours of my time. And I would think to myself, is that worth it for what I value and is that worth my time, so thinking about it like this allowed me to justify spending or make it so that is not worth my time, if there was a $2,000 Chanel bag, and my job was paying me $10 an hour, would it be worth 200 hours of my time, that’s something you have to think about. But a lot of people still do it, they want to impress people they don’t even care about because they want to just flaunt the things that they have. Like they want to flaunt the nice car and the nice bag. So then people around them and be like, oh, cool, like you are doing well with your life. But does that really matter? And I feel that quote really rings true that a lot of people do buy those things that they really don’t need just to impress people they don’t really care about. And instead, I think the better way to go is to just figure out what is in line with your values. And like spend more intentionally for example, if you are a musician, and you really care about music, and you want to have better equipment, I think that purchase makes a lot more sense because it is in line with your values. It’s something you’re passionate about. And it makes sense to spend more money on that. So I’m not saying to completely stop spending, but instead to just be more intentional with your spending and make sure it’s for you and not for other people. And make sure to think about it like that previous example where I was equating the purchase to the amount of time you spent to make that money, then think if it’s worth it for you. Number five, you want to make sure you don’t gamble regularly. According to casino.org. World gambling statistics show that around 26% of the population gamble. That means around 1.6 billion people worldwide gamble and 4.2 billion gamble at least once per year, no matter what casinos exist, because the house always wins, like they say meaning that they have advantages that ensure that they’re always going to profit off of you. And basically, the longer you play, the more you normally would lose more money. So once in a while, I think it’s okay if you’re just trying to go have fun or whatever, but know that it’s not a vehicle to make money or grow your wealth. Basically, if the house always wins, you are more likely to lose in the long run. Alright, number six is don’t invest outside of your risk tolerance level. So you want to be prepared because there are no guarantees, I would say investing is more about the mix of your portfolio versus just picking the hottest stock, it’s more about making sure your portfolio is diversified and matching your risk tolerance level. So the more risk tolerant you are, you might make your portfolio a little bit more higher risk, higher reward, maybe you are in the wealth accumulation phase, and you’re more about that versus the wealth preservation phase. And I’ve known some people who have overleveraged, for example, even in real estate, and they’ve lost a lot of money because the market turn and you want to make sure that you are not over leveraging you’re making sure you are comfortable with how much you are risking you can sleep well at night because you never know what’s gonna happen. So Mistake number seven is don’t not invest. Investing allows you to put your money into vehicles that have the potential for stronger rates of return, I like to look for safer long term investments, for example, in ETFs, like QQ or SP y, or index funds like Vanguard, because they basically include a basket of stocks, it’s not just investing in one. And I also like to make sure I diversify my portfolio. So I invest in also real estate as well as stocks and even crypto. So having a solid mix makes it so that you’re not just putting all your eggs in one basket, then if anything happens to it, you still have other types of investments to balance it all out. But again, if you’re investing, make sure you’re doing your due diligence, don’t just invest blindly. You want to make sure you’re doing your research beforehand. So you’re not just investing in whatever everyone else is investing in, you got to make sure you do your own analysis and actually believe in what you’re investing in. But again, investing does come with risks. I’m not a financial advisor, make sure you do your own due diligence. Now I hope you guys enjoyed this episode on different money mistakes that people make this all just about making sure that you guys stay informed and make stronger financial decisions, especially if you’re younger, it is important to understand these different habits that the average person tend to make and these habits could lead to problematic financial situations. If you guys don’t take care of it. It’s okay to make a mistake once in a while but you got to make sure you learn from it. And again, no one’s judging. We’re all on our different financial journeys.
So hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.Transcribed by https://otter.ai