Warren Buffet : 14 Money Mistakes The Poor Keep Making

In this video, we'll look at 14 money habits that keep most people broke and poor and how you can break free from them. Try Our Favourite Passive Income Business : https://bit.ly/46AmT3c #1. Not having a budget If you're not careful, money can slip through your fingers without realizing it. This is especially true if you don't have a budget. Without a budget, it's easy to overspend on things you don't even need. #2. Lack of emergency savings It's no secret that one of the main reasons people are broke and poor is that they don't have any emergency savings. Why is having emergency savings so important? Because it gives you a buffer in case something goes wrong. Life is unpredictable, and things can go wrong at any time. If you don't have emergency savings, you're much more likely to end up in debt if something unexpected arises. #3. No passive income The vast majority of Americans are broke because they rely on just 1 source of income. Buffet is famously quoted for saying the following : If you aren't making money while you sleep, you will work until the day you die. You can start by looking for a passive income side hustle that will allow you to make extra cash even when you're not working. There are many passive income side hustles out there, but my favorite one is perfect for beginners who want to work from home, and only have 5-10 hours of extra time per week. So what is this side hustle that I love so much? Learn more here : https://bit.ly/46AmT3c #4. Keeping up with the Joneses: Trying to keep up with your neighbors is a great way to spend more than you can afford. It would be best if you focused on your own financial goals and not what others have. #5. Making impulse purchases: Impulsive spending is usually driven by emotions such as excitement, happiness, or anger, and while they may give you short-term gratification, they will only leave you broke and in debt in the long run.  #6. Not diversifying Don't just rely on a single job to cover all your expenses for life. Even at prestigious companies, no matter how smart you are, you could lose your job at any time. More than 10,000 highly skilled Facebook employees learned that the hard way. #7. Lacking a financial plan If you're like most Americans, you probably don't have a personal financial plan. Without a financial plan, it's easy to make poor money decisions that can keep you broke and in debt forever.  #8. Paying lots of taxes Chances are, you are unhappy with the amount you pay in taxes. Some people may try to avoid paying taxes altogether, but this is usually not possible or legal.  But that doesn't mean that you can't legally reduce your tax burden.  #9. Gambling The house always wins. Gambling is the easiest way to run out of money because the chance of winning is always lower than the chance of losing. Warren Buffet says that it’s ok to gamble once in a while for fun, but if you let it become a habit, you will go bankrupt. #10. Gym membership Your health is very important, and a gym membership can be one of the best investments in yourself … but only if you actually use it. Train your mind until you can commit to an exercise routine. And if you can’t do that, save your money and cancel that useless gym membership. #11. Luxury brands Poor people love to buy things they don’t need, at a price they can’t afford. Just to impress people who don’t even care about them. The rich focus on their career and their ability to solve problems. No car or watch is more impressive than a person who can solve hard problems for a lot of people.  #12. New Car Buying a new car is one of the worst decisions most young people make. Because as soon as you drive the car off the lot, it loses a lot of its value. As a general rule, the value of your car will drop by 20-30% after just 1 year. In 5 years, it will lose at least 60% of its initial value. If you want a nice car that still smells new and fresh, you can buy one that is a few years old from a dealership and get at least a 30 % discount. Invest the money you save. #13. TV + video games Warren Buffet revealed an important fact about middle and lower class families. They waste a lot of time and money watching TV and playing video games. #14. Fancy Vacations Traveling can really open up your mind to new experiences and give you a lot of perspective on what life is like around the world. It can teach you skills and make you more confident. And eating new tasty dishes around the world is also fun. But none of this matters if you go on vacations that put you in debt. If you can’t afford it, don’t do it. Images © Piers Baker. SVGDoodleWhiteboard.com 📜 Disclaimer 📜 Images © Piers Baker. SVGDoodleWhiteboard.com 📜 Disclaimer 📜 Nothing herein shall be construed to be financial, legal or tax advice. Some of the links are affiliate links, and I will receive a small commission for referring viewers to the service at no cost to you. #money #budget #warrenbuffet