10 Bad Habits That Are Eating Your Life Savings Right Under Your Nose

In this video, you'll learn 10 habits that are stopping you from saving tons of money. Your habits are what determine whether you'll save every month or watch another month pass by with nothing to show for your efforts. To make sure your bank account continues to grow by the day, give up these 10 habits immediately. But before we dive in, please take a moment to like this video and hit the subscribe button if you are new to the channel. Now that we're all set, let's jump right into these habits. Number 10, impulse purchases. Instant gratification feels good, right? It feels good to have new things. It makes us want to forsake all else and pay attention to the shiny things. While there's nothing wrong with that, the feeling of happiness doesn't last and you find yourself spending more money to chase it. This is the wrong approach to saving money. For example, when you're sad, you want comfort. When excited, you wanna celebrate. Giving into these emotions can make you spend money you hadn't planned for. Emotions may cause your judgment to fly out the window and cause you to spend. For example, you buy comfort food when you're sad. And if your comfort food is pizza, you spend $10 per purchase. And if you're celebrating, you wanna buy jewelry and that can cost you a few hundred dollars. You see, these impulse buys prevent you from saving money and make you poorer. So to save money, discipline yourself to avoid making impulse purchases. You'll have less clutter and keep money in your wallet. There's a Swedish proverb that says, he who buys what he does not need steals from himself. Number nine, falling for get rich quick schemes. Have you ever received an email that promised you'd become a millionaire in just 24 hours if you make a one-time payment of $997? Imagine if you and 20 other people fell for this scam and paid the registration fee. Those cons would receive $20,000 in one sitting. They get rich off your sweat while you become poorer. Success coaches charge up to $150 per hour and can bankrupt you if you're not careful. They entice you with the promise that you'll get rich and be successful in the blink of an eye. And before you know it, your bank account is empty and success is still running in the opposite direction. Falling for get rich quick schemes can be your financial downfall. This is because you're parting with money but will never come back to you. Success comes from hard work, financial discipline, commitment, and patience. Warren Buffett, a billionaire investor, was 30 years old when he made his first million. And you wanna make a million dollars overnight? Sounds a little far-fetched, doesn't it? Number eight, failure to save. There is a saying that goes, if you're saving, you're succeeding. In simple terms, you can't succeed by spending all your money. This is because you will live paycheck to paycheck and may sometimes be forced to spend money before you have it. If you earn $5,000 and spend it all before the month ends, you may have to use your credit card to facilitate your purchases. However, a credit card attracts fees and interest. You may also have to pay up to $40 in late fees if you're late in paying your balance. Saving helps you become financially stable and gives you a cushion for the hard times. This allows you to avoid stress, which improves your health and boosts productivity. You can meet emergencies without worry and you can have peace in the knowledge that you have a nest egg for your future. Nobody wants to be broke and saving money can get you off that boat, but it will only happen if you start today. Number seven, relying on one source of income. Warren Buffett advises that you never depend on a single source of income. Invest to create a second source. Depending on a single income can be the death of your financial independence. This is because you're depending on it to cater to all your financial needs. This causes you to have nothing left to save and may also force you to get into debt. For example, if you earn $6,000 a month, a third of it may go to your rent. Besides that, you have insurance, student loans, car loans, and other financial obligations to fulfill. While you may pay for all those with your income, you have nothing left to save, which causes you to depend on your paycheck alone. Having multiple sources of income can make all the difference in your finances. Imagine making an extra $3,000 a month on top of your $4,000 income. You can do big things, right? You can have money to save in bigger amounts, which can help you achieve your financial goals in a shorter timeframe. And if this is something you'd love to do, let me know by hitting the like button below. Number six, ignoring small expenses. Small expenses can eat into your savings like moss on a sweater. $3 here and $5 there can add up to a lot of money. This subtracts money from your bank account into other people's pockets. For example, that $5 coffee you buy every morning is costing you around $150 a month. That's $1,800 a year, which is money you could be using to supplement your emergency fund. Also, making ATM withdrawals can cost you little amounts that can add up. If you're at a casino and use the ATM, you can spend up to $10 as the withdrawal fee. Imagine making three withdrawals at a casino. Oh, that's $30 of your money wasted. Ignoring small expenses costs you a lot of money in the long run. Taking control of them allows you to save money, which is one way to make decisive steps towards your financial freedom. He who saves pennies earns dollars. Don't ignore the pennies that you get back as loose change. You might find yourself with hundreds of dollars if you're consistently saving. Number five, not creating a budget. Financial experts can't emphasize enough the importance of creating a budget and sticking to it for you to achieve financial freedom. You have to create a budget and not deviate from it unless you're catering to emergency expenses that you had not anticipated creating. A budget allows you to spend the money you have planned to and helps you avoid overspending or impulse buying. For example, if you go to the store to buy some groceries, you might think that you have run out of pasta, which would force you to buy more pasta packs. And buying five packs of macaroni can cost you around $10. It may not seem like much, but small expenses can turn into big amounts over time. Also, you might find yourself buying something you don't need because you crave it, which causes you to make an impulse purchase. Impulse purchases can leave you broke and regretful. On the other hand, creating a budget helps you keep your eye on the ball and to figure out what your long-term and short-term goals are. This motivates you to work on them and track your progress, which helps you achieve those goals without making drastic changes to your life. Having a budget also helps you to prepare for emergencies, such as being laid off. This is because with an emergency fund in your budget, you always ensure that you have saved money that can help you meet unexpected expenses. Number four, playing the lottery. Did you know that in 2020, New York was the leading city in America with the largest lottery sales hovering around $9.74 billion? People spend all their money chasing the elusive jackpot, but the chances of winning are pretty slim with the odds of winning a Powerball being one in 292 million. With Americans spending over $1,000 a year in lottery tickets, it can hurt your wallet. With minuscule chances of winning the lottery, it does not make sense to keep spending all that money only to lose it. You have better chances of being hit by a comet than winning the lottery. Consider that studies have shown that low-income households spend more on the lottery than middle-income and high-income earners. This is because they are tired of being broke all the time and use their money to try and chase a windfall. But the downside is that instead of winning, they lose all the money which causes them to go into debt. If you wanna save money and be financially independent, say goodbye to playing the lottery. You might as well put that money into an investment that will bring you more probable returns. Number three, unwise investments. No matter how smart we think we are, sometimes we make foolish financial decisions that cost us our hard-earned money. If you have been in this position, don't beat yourself up. Mistakes happen, and it's what you learn from them that shapes your financial independence. Putting your eggs in one basket can be a financial risk that is not worth taking, which is a common mistake that many people make. Just because you don't think that all financial corporations can go down does not mean that the one you've put your eggs in won't. For example, you may have invested all of your life savings in a pyramid scheme only for it to go under. This means that you have lost all of your savings and have to start all over again. Making smart financial decisions can make all the difference between you and a handsome bank account. When you don't need to put your eggs in one basket, not investing is another foolish move because your money is not working for you. Investments can bring high profits. If you put all of your money in a traditional bank that gives you a 0.06% interest rate, that's not a smart move. Be smart with your finances, and you'll be smiling all the way to the bank, especially if you follow the tips I'm about to share in upcoming videos, which you can be sure not to miss by hitting the subscribe button below. Number two, not taking financial risks. All investments come with financial risk on a certain scale. While some are riskier than others, choosing comfort over financial progress is a mistake that can cost you a lot in the long run. Instead of putting your money in a bank account where it's relatively safe and low yielding, you can put it in a high yield account that has a higher risk but is more rewarding. For example, if you have money in your bank but are afraid to start a business, you're not taking any financial risk. Thus, your money will never grow and it will take you twice as long to achieve financial freedom. Also, putting money in stock markets is taking a financial risk, but if you know the right stocks to invest in, it pays off big time. Most people focus on the reward rather than the risk. They read financial books and learn about risk and rewards on a financial risk they wanna take. That way, they go in knowing what they're risking and how big their rewards are gonna be. Take time to know the money markets and decide which risk is worth taking, then dive in. You'll be glad you did. Number one, engaging in unhealthy habits. A wise saying goes, your net worth to the world is determined by what remains after your bad habits are subtracted from your good ones. And if you ask me, that is undoubtedly true. If you have unhealthy habits, what happens to your body is a result of not taking good care of it. This also costs you the money you spend to feed your habit and to treat the consequences of the same habit. For example, having a beer or two is fun when you are out with your friends on the weekend. It helps you unwind and relax after a busy week, but too much of something is poisonous. If instead of unwinding, you drink yourself into a stupor, you need to rethink your fun choices. The average cost of beer in America is $4.75. If you drink 10 bottles, you're spending almost $50 in one sitting. If your habit starts Friday and ends on a Sunday, you're spending $150 every weekend just to drink. This isn't even counting the rounds you buy for your friends. From a health perspective, drinking causes liver cirrhosis, which is an incurable disease that attacks your liver. It also reduces productivity, causes depression, and wastes your money at an alarming rate. Beating unhealthy habits allows you to stay in good health and saves you money, which is a big determinant of how quickly you can achieve financial freedom. Rich people know this, and that's why they live differently than the poor. And if you wanna learn what else rich people do that poor people don't, click on this next video, and let's get started.