4 Money Habits Keeping You Poor

Author

Lawrence Briscoe
March 16, 2024

4 Money Habits Keeping You Poor

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Upgrading Your Lifestyle

The more money you make, there will be more temptation to upgrade your lifestyle.

There are ample opportunities to upgrade your lifestyle and buy high-ticket products as you go. If you can resist those urges and continue to maintain your current lifestyle, you’ll experience a type of freedom 90% of people won’t get to experience.

Selling Yourself Short

Set an aspirational hourly rate. If you could pay yourself any amount per hour, say it out loud and outsource tasks that can be done for less than this rate.

Your time is valuable, and spending it on low-paying tasks can limit your earning potential.

Here’s the catch, you’ll have to dedicate that time to something that will bring you to your aspirational hourly rate or you’ll just go broke being lazy.

Use your time wisely.

Not Compounding Your Money

Compound interest allows your money to grow exponentially over time, as you reinvest your income, the interest you receive will continue to grow.

Investing early and consistently maximizes the benefits of compound interest.

Compound Interest is the 8th wonder of the world.
Those who know it, earn it. Those who don’t, pay it.

3 variables that control compounding

  1. Starting capital & recurring investment (money)

  2. Amount of time invested (time)

  3. Average Annualized Return (return)

Money

The more money you can invest, the more money that can work for you.
Every dollar is a worker, the more workers you have, the more money you will make.

Time

The longer your money is invested the more time it has to grow. Time is the most valuable currency so it's imperative to invest early and often.

Return

How fast can your money grow?
If you don't want to wait as long or if you're older in age, you'll have to find an investment vehicle that will yield you a higher return.
Here’s the catch, the higher the return/reward the higher the risk. Your money will compound faster if you choose a good investment, and have a solid plan.

Starting Late with Compounding

Waiting to invest means missing out on the magic of compound interest, which can boost your wealth over time. Time is your ally, invest early and often.

Your money has more chance and opportunity to grow and secure your financial future. Start planting those seeds in your money tree.

The best time to invest was 20 years ago; the next best time is today.

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