Money Habits Keeping You Poor

Money Habits Keeping You Poor 

 If you’re tired of living paycheck to paycheck, stressing over money, and feeling like you can never get ahead—listen up ladies. The truth is, some of the habits you have right now are keeping us broke. But the good news is we can change them. And today, I’m breaking down the biggest money mistakes women make—and what we need to do instead to start building real wealth. 

1.Pay yourself first. This is one of the biggest game changers. So many budget for bills, groceries, everything and everyone else first. We then hope there’s something leftover for ourselves. That’s backwards. We need to make saving and investing our first priority. Even if it’s just a few bucks at a time in the beginning. Set up automatic transfers into your savings account and investments accounts so it’s happens before you spend. This will help you build a financial safety net. We’re not even going to talk about compounding in this video. 

As women we put everyone before us. It’s ok to make ourselves a priority too. I learned that lesson late in life. Put yourself first, your future depends on it. 

2. There’s the argument in the finance community is there such a thing as good debt and bad debt. Some say it’s all bad debt. Those same people live in areas where you can buy a modest home with cash. I do not live in that area. For those in my area, a mortgage can be good debt. However, it can be not so good debt if you become house poor or economic stuff happens and you become underwater with your mortgage.  

Student Loans is another issue. Not every child has parents who can afford to send them to college. That’s a debt that really needs to be looked for each child/family. Some kids will graduate with student debt. And that’s ok. Remember we’re a judgement free zone. We are not going to leave comments about that ok.  

But there is bad debt. Credit card debt, payday loans, financing things you can’t afford. In this case, let’s stop normalizing debt as a part of life. If you rely on credit, you’ll stay broke. For a while I had no choice but to rely on credit cards. It happens and I’m not going to beat myself up anymore. I have trolls on you tube who can do that. 

3.Build an emergency fund. Life happens. German car passenger side headlights need replacing, medical bills, job loss. If you don’t have an emergency fund, you’re one unexpected expense away from financial disaster.  

$1000 is the minimum. Then work to 3-6 months of expenses.  

Emergency fund = financial protection 

4. Know your numbers. Do you know exactly how much money you make every month and how much you actually spend? Wealthy women know their numbers. They track what’s coming in and what’s going out. Start checking your bank apps, creating a budget and staying on top of your finances.  

5. Stop spending mindlessly. We work hard for our money, let’s not waste it on things that don’t add value to our life. Impulse buys, emotional spending, lifestyle creep, that will keep you broke. Before you buy anything, ask yourself “do I really need this? Will this bring me closer to my financial goals? Does is add value to my life? I love candles. I no longer buy as many. I still buy them because they add value to my life. I have flameless ones and the ones that burn. I use them. 

I’ve also learned to include relationships in the adding value to my life. If they’re not adding value to my life and I’m not adding value to theirs, relationships are a two-way street. Then I just can’t anymore and I’m done.  

6. Save, Save, Save! Saving money isn’t just about cutting expenses, it’s about keeping more of what you earn. Set goals, automate as much as possible. Remember you can start small if you have to. Just start. 

Savings = Freedom

7. One way you can save is by understanding your taxes. Taxes are not something you deal with once a year. If you don’t understand them, there’s a good chance you’re overpaying. Look at classes at those adult schools. Where they offer 1 or two classes on a subject. Your YMCA or Jewish center may have these kinds of classes. The community college near me has them, there’s another school that offers classes. My mom used to take guitar lessons and tennis lessons. My sister took cake decorating, photography. The classes are usually reasonable. 

Know your taxes. Keep more money.” 

8. Invest now. Stop waiting. Saving alone won’t make you rich. If you’re not investing, you’re losing money to inflation. Women are less likely than men to invest. Women of color are even less likely to invest. That must change now. There are free and low-cost apps. There are those classes at the adult continuation schools. 

Investing = Building Wealth 

9. No one is coming to save you. You need to take control of your money. The biggest mindset shift women need to make is to stop waiting for someone else to take care of your money. This isn’t a Disney movie. There’s no prince, no husband, no government program that’s going to magically fix your finances with a magic wand. You have to care about your money. You have to take control. No more waiting, no more excuses.  

You are your own financial hope. 

We have a choice to make, do we stay broke or do we get on solid financial footing. I’m not going to tell you what to do, but I think we know what the right choice is. 

Start making just one change today. Let me know in the comments which one.