Money Habits Keeping You POOR In 2025 | Finance Consultant Explains - video Dailymotion

Matt | Personal Finance

In this video, I reveal 3 of the most common bad money habits that keep you poor and prevent you from reaching your financial goals – and how you can break them to start building wealth.   Most of our daily financial choices are made unconsciously. The more aware you are of your money habits, the quicker you can reach your financial goals. Without realizing it, you might be doing these 3 money habits which are keeping you stuck in a cycle of poor finances.   How to stop spending money on unnecessary things, things that keep you poor, good habits of successful people  #moneymanagement #moneytips #personalfinance #money #savings #investing #salary #income #wealth #debt #creditcard #financialfreedom #financialeducation #financialliteracy

Transcript

00:00In this video, I'm going to share three bad money habits that keep you poor and stop you from

00:04growing your wealth. I think these three habits are fairly common, but no one actually teaches

00:09you not to do them. If you're new to this channel, I'm Matt. I've been a finance consultant for over

00:1410 years. I've worked for one of the top consulting companies in London. I now run my own company and

00:20on this channel, I talk all things personal finance. So let's get going with the video.

00:24The first one is thinking of income as only coming from one job. I grew up always thinking

00:30that you should work hard in your one job, try to get promoted and earn a bigger salary.

00:35I think a lot of us are brought up in a similar way, but the big difference between those who

00:40are earning a low or average income and those who are earning millions or more is that they have

00:45multiple sources of income. In fact, a study showed that 65% of millionaires have at least three sources

00:52of income. These can be from a variety of sources from real estate being rented out,

00:57earning dividends from stocks and shares, or earning income from businesses that they own.

01:02By spending time on adding passive income streams, I found my income exponentially grew. And as you earn

01:08more income, you're able to invest in new sources and create more income and your wealth keeps growing

01:14and multiplying. There are lots of videos on YouTube and online giving ideas of different types of passive

01:20income streams you could start up from scratch. And many of these, you don't need lots of startup

01:25money to get going with yourself. For example, it could be that you teach a short course online about

01:31video editing, and you can do this on platforms such as Udemy. The second habit is on how you manage

01:37your income and expenses and stopping the cycle of lifestyle inflation. As you earn more money,

01:42you spend more money. In London, in the city, I would always see people earning more and more money,

01:47getting promoted, increasing their income, but then spending it all on fancy new cars, designer clothes,

01:53or expensive meals out. If you can do your best to try and keep your expenses at a similar level

01:58or within your means while your income goes up, you'll find you're able to grow your wealth at a

02:03much faster rate. There's a great book called Rich Dad, Poor Dad by Robert Kiyosaki, which talks about

02:09the concept of paying yourself first, which is what rich people do. And what this means is instead of

02:15having the mindset of when money comes in, I pay all my bills and I spend my money, meaning at the

02:20end of the month, I've got nothing left to save. What rich people do is they have a different mindset.

02:26When money comes in, the first thing they do is they save a chunk of it, put it to one side and

02:31invest it. And then they manage their expenses and costs of living to be within the remaining amount

02:36of money they have for the month. You might be thinking, well, that's all well and good, but how do I

02:40actually do it? One of the things I found really helpful was to have an income and expenses tracker.

02:46It helped me to target where I wanted to get to, what I could save and invest. And it also helped

02:52me to target reducing the big ticket monthly expenses so I can manage my budget to be within

02:57my means each month. The third habit is bad debt. And I mean that in two ways. The first point is using

03:04credit cards and buying things when you don't have the money. There can be loads of tempting times,

03:09whether it's sales in the shops, whether it's the latest fashion trend or the latest technology

03:14launch or phone upgrade. But unless I have the money in my bank, I don't buy it. 46% of households

03:20in the US have credit card debt and the average interest rate on a credit card is 22%. Often people

03:27get trapped going month to month, paying off their credit cards, and it's a difficult spiral to get out

03:32of. I'm not saying don't use credit cards because there can be a lot of benefits in doing so,

03:37such as protection on your purchases. But the key is to only spend on credit if you have the money

03:43already to pay for the item. The second point is about over leveraging yourself. If you take out

03:48the largest loan you can afford to buy the biggest house you can get, the problem is the monthly

03:53payments are so high on the mortgage, you'll struggle to save anything each month and you end

03:58up paying massive amounts of interest straight to the bank. You get trapped in this cycle of earning

04:03to pay the mortgage, but with no savings to invest and grow your wealth. So try to pay off your high

04:08interest debt first and then look at your debt to income ratio and make sure you're still able to

04:14save and invest on top of paying back any mortgages or loans that you have. I 100% get these three money

04:21habits are not easy to stop doing as I've done all three of them. But if you can gradually make steps

04:26towards one or two of these at first, you'll make a difference to your financial stability in the long

04:32run and also your ability to grow your wealth. I hope this video has been helpful. Feel free to leave

04:37any questions in the comments and give the video a like and a subscribe and I'll see you on the next video.

Money Habits Keeping You POOR In 2025 | Finance Consultant Explains

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