15 Money Habits That Keep You Poor

Everyday you choose if you will  be rich or poor in the future; sometimes knowingly and  other times unintentionally. This is the only video on this  topic you will ever need to watch! By the end of this piece you  will have a clear idea of what’s actually happening and you will have a  game-plan that will solve this for you!

Here are 15 Money Habits that  Keep you poor! Let’s do this! Number 1: Taking bad money advice from poor people You’ve been lied to by many generations who have no idea what they’re talking about.

Growing  up you’ve been told that the key to wealth is to get a well paying job that pays you a good  salary. Society has normalized putting hundreds of dollars worth of debt onto kids finishing  university by perpetuating this old lie. Brutal truth: you won’t get  rich working for someone else!

Also, stop taking advice from  people who are not successful! Talk to people who are where  you want to go. Without your choice you end up surrounded by some  people and they become your friends.

You are the average of the 5 people  you spend most of your time with. Hang out with broke people? ! 

Guess who’s gonna be the 6th? You need to be able to take  responsibility for your situation, even if the game is rigged against you. Poor people love to blame others for their failures!

Figure out a way to escape the system through skills that have economic value. If all you know  how to do is flip burgers, you won’t get very far. There are 2 ways to improve your  value and they work hand in hand: What skills you have How much people are willing to pay  for putting those skills to work.

Lucky for you, you can learn valuable  skills online for free and you can learn real skills which you can monetize. In the age of information, being ignorant is a choice! Sort through the bullshit,  find quality teachers and start learning.

Number 2: Gambling & Lottery:  Luck isn’t a strategy Nobody will save you. Jesus ain’t coming down to pay your rent  and no lamp has ever produced a Genie. Life is a probability game. 

The more you understand this, the quicker you’ll stop being poor. All rich people do every single day is to focus their efforts on improving  the probability of them making more money. Poor people leave this probability up to  the universe and with it their future.

The moment you’re not writing the  future for yourself that’s when you get whatever is left or whatever crumbs  others are willing to throw your way. Life is about control. Get  as much of it as possible.

Control yourself and your environment  until the future becomes predictable. Once you have control, you don’t need  luck. Rich people don’t believe in luck, they don’t need luck.

Luck is for poor  people. If you work hard you don’t need luck. Number 3: Spending money on things  that you WANT but don’t NEED Everytime you buy something you don’t need, realise you’ve been marketed to.

Someone convinced  you to trade your hard earned money for a feeling. Poor people are quite profitable! Companies and marketing people  understand this very clearly!

That’s why you see all those broke  people trying to flex on the gram. Poor people think rich people wear Gucci,  because Gucci is paying celebrities to wear the brand so they can sell more to  poor people. You are being marketed to all the time, because poor  people are bad with money.

That’s the paradox of growing up broke: You stay broke by trying to fill the  whole growing up broke left inside of you! Please remember that: If it’s  on sale but you don’t need it, it’s still expensive and you shouldn’t buy it. Number 4: Not knowing how much money  you spent last week, month and year Y’all just spend money the second it hits  your account.

Every poor person out there complains that they don’t have enough money,  yet none of them know where their money goes. You think tracking your expenses is hard? !

…  you know what's even harder? Staying poor and not being able to afford anything! Wake  yourself up and realise just how much money you’re unnecessarily spending on  subscriptions and stuff you don’t need.

That money could go towards paying off your  debt or plugging your other money holes. `Poor people are good at  surviving with little to no money, so when they do get paid they’re quick  to spend it to return to their default, out of a fear that somehow it will  be taken away from them by life. Every resource out there will  talk about budgeting and planning, and yes that’s the way to do it, but as long as: MONEY COMING IN - MONEY GOING OUT = 0 How can you expect your life to improve.

Measure  how much money you’re making and track how much you’re spending. It’s the first step to realise  just how fragile a position you find yourself in. Number 5: Spending money you don’t  have on things you can’t afford anyway This is the deadliest combination out there.

Why are you spending money you don’t have?  Debt is modern day slavery. The moment you borrow money to buy anything, the corporation owns  your time until the money is repaid with interest.

The first thing you need to  do is to stop wanting things NOW! Instead, only buy it when  you can actually afford it. A good rule of thumb is: If you have to ask if you  can afford it, you don’t!

Nobody needs to have an internal debate  when you’re picking up chewing gum at the cash register, you just buy it because you can afford it. You know damn well you  can afford 10-20 of those Orbits. If you can’t buy it twice, you can’t afford it!

Borrowing money is a horrible habit that is systematically keeping the  general population poor. Be wary of lending other people your money;  for while it’s with them, it ain’t earning money with you! Banks and loan sharks are  the only ones who profit from lending money, everyone else is being bled dry.

Number 6: Trying to keep up appearances People will sacrifice their own future  just to impress people they don’t like. The more you think about it, the more  you realise just how foolish that sounds. Why do you feel the need  to spend 100k on a wedding when you could invest in a business or  travel the world with your loved one?

Why do you feel the need to upgrade your iphone  every year when the old one works just as well? Why do you need to have a kid  just because your friend had hers? We are proud people and don’t want to  be perceived as inferior; and that’s exactly how you end up poor long term,  because the things that get you out of poverty are in the exact opposite  direction: STOP PLAYING STATUS GAMES!

There’s a hidden rule that poor people don’t  know: The appearance game can not be won! The second you get up to date,  that’s when the goal post moves. What you end up with is  called the RED QUEEN’s RACE.

Concept from Alice in Wonderland where you have  to run as hard as you can just to stay in place. That’s why you can never win this game. You need to keep spending your money  just to stay in the same place.

Number 7: Having only 1 source of income This is where we feel some butts clenching up  because who can afford to work yet another job? ! See.

. for poor people, working a job is  the only way they know how to earn money and as we established early on,  working a job will never make you rich. On top of that, there will always be  a ceiling to the number of jobs one can work and respectively, the  amount of money one can earn.

Plus, if a car runs you over and you  can’t go to work for the next 4 months, none of that income is coming in, is it? ! The math is simple, the more streams of income  you have, the less likely you are to go broke.

Research into the distributed  wealth of the rich shows that: 65% of self-made millionaires had three streams  of income, 45% of self-made millionaires had four streams of income, and 29% of self-made  millionaires had five or more streams of income. Poor people earn money only while they’re working. It doesn’t matter how much money  the side hustle brings in as long as it keeps dripping while you’re away.

If you’re unable to earn money while  you sleep, you will never be rich! The moment you taste the freedom  of working for yourself and having multiple income streams you become unemployable! We have a dedicated video about 15 Assets that  are making people rich which you can check by clicking in the top right corner.

Watch it after  this one and pick any of them as your side-hustle. Number 8: Wasting money and  time (usually on entertainment) When everybody has the same number  of hours in a day the difference in long term results comes from how many  of those hours we use to better ourselves. If you’re in your 30s and broke, it’s  because you procrastinated in your 20s.

Wanna be rich? Every day: Spend more time on creation  than you spend on consumption This creates a value added surplus in  your life. Pay attention to what you’re creating.

Understand the fundamentals  mentioned earlier about earning while you sleep and it’s just a matter of time  until the residual income becomes decent. If you want to start your wealth building  process, replace the dead-times in your day with productive activities. Follow up by  cutting entertainment.

It will be a pain in the butt for a while, but you’ll  see things get better fairly quickly. If you’re broke, you can’t afford  entertainment. You can’t afford to waste time, because wasting time  is the most expensive thing around.

Number 9: Going YOLO: Thinking  short term vs Long term Anyone remember when YOLO was  a thing? ! Stop sacrificing the future for the present when  the present isn’t that good.

Screw living rich and dying broke! The entire flex  culture and this attitude of living in the moment does nothing but harm on the poor part of society.  It keeps them poor by selling them the dream.

Fundamentally, Poor people buy things that don’t hold value! It gets worse… Poor people pay interest when they borrow money to buy things that  depreciate in value over time. The average car will depreciate -63% in the  first 5 years.

Not only you’re losing money every year but you’re also paying interest  in the money you borrowed to get it. You’re getting screwed from both ends, yet. . 

You flex that new whip on the gram right? ! Well.

. who’s actually laughing  when the lights don’t turn on? !

Every self-help book, product, video and so  on boils down to a single piece of advice: CHOOSE LONG TERM OVER SHORT TERM! Get it backwards and you  will be generationally poor! Number 10: Not learning how to  invest & Being afraid to change If what you are lacking is money… why don’t  you spend some time to learn how money works?

! It’s usually because of arrogance. People  falsely assume that they understand money, because they’ve seen it at other people.

Everything you need to know about money  is available for FREE. There’s more value offered for free on our channel alone than in the  MBA or elite coaching programs we’ve attended. That’s why over 3 million people subscribe  to us - and so should you if you haven’t!

Yet something keeps people from taking action.  Moment of truth, this is just between you, the viewers and us. How many  of you actually own at least 1 stock in any company?

How few of you know  what the process of buying 1 stock is like? There are hundreds of platforms that allow you  to invest money, yet you keep postponing it. Last year we let everyone know the exact stocks  we’re bought right here on this channel and everyone made money because of it.

But you need  to be able to take action. We told you to buy bitcoin when it was under $10,000 and a small  portion of you did as seen at courses. alux.

com You need to not be afraid to change. There’s  this abundance of technology all around us. Opportunities have been democratized to the  masses.

Anyone can hop on any new technology and use it to better themselves, yet they  use it to stalk fitness models on instagram. The more you learn the more you earn! The more  you’re able to use modern technology the higher your leverage is.

Don’t be scared of the new,  embrace it and you will be rewarded for it. Number 11: Spending first and then hoping there’s  something left to save or invest when you’re done Poor people do another thing  backwards than everyone rich. They get money, spend it and  save/invest whatever is left at the end.

As you probably know from experience,  there’s never anything left. That’s why 2 in 3 Americans  live paycheck to paycheck. When the rich get paid, a portion of the money  goes directly to investments or savings accounts and then proceeds to go through  your month with what’s left.

This works because the focus is always on  increasing income through those investments. Instead the average person goes on a spending spree. This is also fueled by  the rise of social networks.

57% of millennials say they overspend because  of something they saw on social media! When you see all these celebs  going to the Maldives you start craving that as you associate  it with happiness and success. This develops what is known as FOMO,  fear of missing out, so you spend more.

What most people don’t realise  is just how fake social media is. We are a sad generation posting happy pictures  for internet points! Every experience posted takes away from the actual experience. 

Everything posted has become an advertisement, if not for other brands,  then it’s for your own brand. Number 12: Paying too much in taxes It always blows our mind how Poor people  are happy when they get a tax-refund. That’s money you lended to the government with  no interest to it.

They used your money for free. But that’s not all of it. Poor people get taxes very differently than rich people  and we’ve covered this before.

If you’re working a job, the state takes  out your taxes straight out of your paycheck and then you’re left with the money to spend. If you’re a business, you first get to  spend how much money you want to spend and then the state taxes what’s left. We  have a phenomenal video on how the rich avoid paying taxes which you can check  out by clicking in the top right corner.

Number 13: Unhealthy lifestyle Almost every unhealthy habit you  have in your life is making you poor. Cigarettes? Yep, making you poor.

Alcohol. Same. Eating fast food on the couch  binge watching anime!

POOR! ! !

Not only do these create financial addiction  taking money directly out of your pocket, they also serve as a domino effect connected  to everything else in your life. If you’re fat, you’re less likely to get a job promotion and more  likely to have complicated heart problems which result in an enormous health-care bill since  you live in America and health is for profit. It’s the old idea that if you don’t fix a  cavity you will soon have to pay for an implant.

Take a moment to look around you right now  and see all the junk that surrounds you. You paid for most of it and  it’s affecting your life. Number 14: Wanting money to be easy and fast For some reason the idea of a progresive growth in income and wealth does  not resonate with poor people.

Every single one you ask will tell  you about how they want to hit it big. Have a big score and then retire. They grow looking up to the likes of  Pablo Escobar, Tony Montana, Don Corleone.

They all think of themselves as mobsters, of  people on the underground who have something big cooking. You know the type. They’re usually  flimsy, not creative and not that smart.

Put the same time and interest into  learning how people build companies and do what everyone else did in  your area. It’s not rocket science. It’s actually a lot easier to make  a ton of money legally than it is trying to run a cartel.

In the age where a 16 year old with an instagram account can become a  multi-millionaire, why risk getting shot? ! Making money is actually a boring process  once you figure out what you have to do.

It takes less than 10 years for anyone  who’s committed to go from poverty to wealth, yet for some reason it’s  still too long for some of them. That’s when they fall in the trap of get rich  quick schemes or Multi-level-marketing ploys. As long as you live remember this:  There are no get rich quick schemes, there’s only someone getting rich off of you!

Number 15: Staying poor is a choice The habit of thinking of yourself as poor, as  someone who will never be wealthy, as someone who’s not smart enough, good enough, educated  enough is what’s actually keeping you poor. People will less than you have  managed to escape poverty, yet there you are complaining that  things don’t come easier for you. Yes, life is hard.

Maybe it was a lot harder for  you than for everyone else. But what are you going to do. Drwn yourself in the misery of it all  or pick yourself up and start walking?

! As long as you keep going, keep learning and improvise  along the way, you’ll end up where you want. At the end of the day, you can’t choose  where you’re born, who your parents are and the environment you grow up in, but at some  point it all switches to you.

You can choose what your life will be like, how much you’re willing  to work and what the future holds for you. Bill put it well when he said: If you were born poor, it isn’t your  fault, but if you die poor, that’s on you! We take pride in the quality of our audience  and your desire to actively improve your life so we want you to join the conversion:  What behaviors did you experience or witness that are keeping people poor? 

Let us know in the comments! As for those of you still watching…  of course there’s a bonus waiting! Bonus: Limited vs Unlimited Output For the bonus part of this episode we  want to share with you this idea of Limited vs Unlimited output, or in other words  Linear vs Exponential returns on your work.

Even today, most people think of money  in linear terms, because that’s how they were brainwashed to think. That’s what  the world was like when they grew up. For them, if you put in 8 hours of  work -> you get 8 hours of output.

This was true when you were hand  making bricks or chopping wood, but it doesn’t apply to the  world we live in right now. Only poor people do linear work! Everyone rich has figured out  how to do exponential work.

Exponential work uses leverage or multipliers  to achieve greater results. This piece of content is exponential work. It took a while  to create, but it can be consumed by millions of people throughout time.

It’s unlimited  in terms of the return it can generate, unlike a bakery, where if I make a pie and  sell it, then I have to make another pie. Here’s where the golden nugget is: depending  on your ability to perform in the market you fall into one of 3  categories on Non-Linear work. Ok work -> gets you a multiple of 1 Good work -> gets you a multiple of 10 Amazing work -> gets you a multiple of over 100 Please pay close attention to this because it  can dramatically alter the corse of the future.

In order to be able to use multiples you will  need to work with your brain, not with your back. Let’s say you design a logo or  write a book. If it’s just ok, you will get paid for the time  you put into it and that’s it.

If you do good work, maybe you will get some  referrals and the business will slowly improve. If you do incredible work you will become  a brand. The logo makes you famous, the book becomes a bestseller, the song becomes  a hit and everything else around you blows up.

That’s why you should always strive to do amazing  work. The returns are just mind-blowingly good. What’s even crazier, is that you  only need to get it right once and all these doors that were previously inaccessible  to you are now open.

Modern day is meritocratic. Intellectual work knows no borders. We don’t care  if you're in Nairobi or Sao Paulo or Cupertino.

Good ideas have a platform on the internet  and are widely available to the masses. Code is non-linear. Content is non-linear. 

Authenticity is non-linear. Good writing, good branding, everything where creativity is involved  is non-linear. It’s just a matter of figuring out how to use your brain instead of your back and  delivering amazing work instead of just ok-work.

That’s when those X’s start pilling up. Hope  this bonus is actionable enough for you, the true ALUXERS to put it to work. Rid yourselves of the  habits mentioned in this video, and write the word MONEY in the comments as well as liking this  video.

As you’ve noticed, YouTube won’t show this video to the community unless to do all the dance  it requires. We really appreciate those who do!