7 Money Habits That Keep You Stuck (And Broke!)

Transcript:

On this episode of the Personal Finance Podcast, seven Money Habits that Keep you stuck and Broke.

What's up everybody, and welcome to the Personal Finance Podcast. I'm your host Andrew, founder of Master money.co. And today on the Personal Finance podcast we're gonna be talking about. Seven money habits that keep you stuck. If you guys have any questions, make sure you join the Master Money Newsletter by going to master money.co/newsletter and follow us on Spotify, apple Podcast, YouTube, or whatever your favorite podcast player you love listening to this podcast on.

And if you want to help out the show, consider leaving a five star rating and review on Apple Podcast Spotify. Or your favorite podcast player, cannot thank you guys enough for leaving those five star ratings and reviews. They truly mean the world to me. If you're getting value out of this show now today, we're gonna be diving into these seven money habits that keep you broken.

What I wanna do is I want you to go through each and every single one of these and ask yourself a couple of questions. One, am I doing this? Is this something that I am currently doing? And if I am, how can I improve my specific situation? Number two, what are the action steps that I need to take after each one of these in order to improve on that specific thing?

And these are the questions that I want you to ask throughout this episode as we start to motivate you and talk through some of the things that you need to be doing in order to improve your finances. This is going to be one of those powerful things that if you take action on some of this stuff, you will.

Absolutely change your financial life, but it's up to you to start today and take action on these things. This can be one of those life changing episodes if you are willing to listen, absorb the information and then get after it. 'cause that's gonna be one of the most important things that you do this year.

So if you're ready for it, let's get into the seven money habits that keep you stuck. Number one is wishing and hoping instead of having goals. Now, there are so many people out there who have these different goals in life. They want to retire one day, but I hear so many people say they wanna retire one day and they have zero plan in place.

Whatsoever on how they are going to achieve that retirement goal. I have talked to people who should be retired in their sixties, who are hoping they are going to retire one day and wishing that one day they can retire. And what a lot of people do with their money is when they do not get their financial life together.

They just hope it's going to happen one day and they just hope they're going to stumble upon retirement or they hope they'll have a fully funded emergency fund. And if you have zero plan in place, you will never. Ever achieve any of those goals? You might get part of the way there, but you're gonna have a retirement that's not that fun, and you don't have much extra money to go out and spend to travel with your family or spend it doing things that you love, or you might accidentally stumble upon some money and be able to achieve some of these goals.

But for most people, that is not a plan that's going to work. So what I wanna do right here is show you how to come up with a plan number one. Is you need to understand your why. Why do I care about building wealth? What kind of life do I actually want and how am I going to achieve it? What would financial freedom look like for me and my family?

And you gotta ask ourselves these questions because understanding your why is your fuel. This is going to be your north star. This is what is going to propel you forward. In order to achieve your financial goals and dreams. You have to have that mission statement. That financial mission statement is something that is.

Absolutely imperative when it comes to building wealth. Now, once we understand what we are going to be doing, maybe it's you wanna retire early, or maybe you wanna have that fully funded emergency fund, or you just wanna get started investing and take that first step towards progress towards growing your money, or you want to have cash flow from real estate.

It doesn't matter what your financial goal is. Now we're gonna start to set up a plan in. Order to actually achieve that goal. And so we wanna set up smart goals Now, smart goals for the longest time are just one of those things. You can learn it in high school, you can learn it in college, and people talk about them all the time.

But when it comes to your money, they are extremely relevant. Meaning you have a very specific goal based on your why. What is your why? What is your goal? Maybe your very specific goal is. I want to make sure that I fully fund six months in my emergency fund in 18 months. Well, if that is your specific goal, that is a really powerful goal to have.

Or I will max out my Roth IRA, contributing $583 every single month. Well, that's another really powerful goal. These are goals that we have to get very specific on. Now how do you measure that? Meaning with money you can measure a lot of things and it's actually very simple to measure things with money.

Well, if I wanna max up my Roth, IRA $583 need to come outta my account every single month and into my Roth IRA. But you also need to A, make it. Achievable and achievable goals are things that you can actually achieve. If you're gonna say, I wanna make sure that I make a million dollars this year, well, for most of us, that's likely not going to happen.

It needs to be an achievable goal that you can actually accomplish, but it also needs to stretch you a little bit. That's one really, really important note there. Also, it needs to be realistic. This needs to be one of those things. That is realistic. It's not way out there in space. You need to make sure it's a realistic goal and then time bound one of the most important parts because you need to have a time associated with when you wanna achieve that goal.

So an emergency fund is a great example because let's say you want to have your fully funded emergency fund over the course of the next. Two years. Okay? And over the course of the next two years, you know that having a fully funded emergency fund is $24,000 in your emergency fund. That's what it costs for you to have six months expenses saved up.

Now, I'm just using this as an example, especially 'cause it's easy math. And so in order to do that in the next 24 months, you need to save $1,000 every. Single month over the course of the next 24 months. This is just step by step how you are going to achieve this goal that's $250 every single week in order to achieve your long-term, six month fully funded emergency fund goal.

Now, see how easy that is? You start with the big goal and you work backwards towards that goal. Well, how am I gonna do this? Well, to take action on this, you're gonna automate $250 every single week into your high yield savings count in order to achieve this goal. This is how you achieve goals automatically with how to having to.

Think twice about it. Now when you're setting up your goals and you're thinking through, okay, well what are some of my big financial goals here? I want you to first take that big, hairy, audacious financial goal, that huge goal that you have in place, and I want you to think about that goal for a second, and we're gonna break this down over time.

So let's say your big, hairy, audacious goal is to have that a hundred K net worth by the time 2030 rolls around, and you wanna have a hundred thousand dollars in net worth over the course of the next five years. Well, what is your yearly plan in order to achieve that? Well, I need to make sure my net worth goes up $20,000 per year over the course of the next five years.

So that is my yearly plan. So you take your big goal over the next five years, and now what you need to do every single year is have $20,000 per year. Well, what does that mean? I need to save X amount of dollars every single month in. Order to achieve that goal, which is $1,666 and 67 cents every single month, is what you need to be saving in order to achieve that goal or adding to your net worth.

Okay? So maybe you're investing those dollars, maybe you're putting 'em towards your emergency fund, but you need that amount every single month in order to try to achieve that goal. And then what are your weekly actions? You wanna break that down into weekly actions so that you can. Think through this process and depending on what type of goal it is, you also wanna have some daily checkpoints in there if it is a very specific goal.

And those daily actions need to move the needle. This is how you achieve goals, is you take big goals, you break 'em down into smaller and smaller and smaller chunks. We call this goal stacking. So you have the big goal, then you have the yearly goal, then you have the monthly goal, and then lastly, you have weekly actions and daily actions that you need to be.

Taking, and so this is how you can think through this process. Now I like to review my goals and make sure I'm on track every 12 weeks. This is the 12 week process that I follow. I got this from a book called the 12 Week Year, and this is what we teach and Master Your Money Goals is how to break this down every 12 weeks.

If you've never heard of Master Your Money Goals, it is our course teaching you how to set and actually achieve your financial goals. If you go to master money.co/courses, you will find it there. But we are gonna set targets for the next 12 weeks, is what I like to do. And this allows me to track my progress weekly, but in addition, it also allows me to achieve more every year.

I'm gonna achieve way more every single year because I'm breaking these goals down and chunking them into 12 weeks and trying to accomplish them faster. I. And so because of that, you can accomplish financial goals faster because you are really intense about these specific goals for that timeframe. So it's a really, really powerful way to break this down.

Again, we focus on that in master Your Money Goals a ton. And so this is what I want you to do first is think about your goals and how you can actionably go after those goals. Number two is not focusing on million dollar decisions. So one of the most powerful things that you can unlock in your mind is understanding that there are million dollar decisions when it comes to your finances.

And if you don't understand what those million dollar decisions are, today is your day, my friend. We are gonna flip the script because this is a huge, huge, big difference maker that a lot of people just. Don't realize, way too many people focus on the little things, the $3 latte and ignore the 300,000 to million dollar decisions that could change their financial life forever.

You can retire so much faster if you focus on the million dollar decisions. You can have financial freedom so much sooner if you focus on those million dollar decisions. And so this is the way that we need to think through our money when we are taking. Actions when it comes to building wealth. So a lot of people will, they'll skip the latte, but then they'll go out and they'll finance the $60,000 card, an 8% interest rate, or they'll cancel Netflix, but they never invest in their 401k or reallocate those dollars.

Or they'll coupon hunt, but they'll never question their $2,500 rent. This is what keeps you broke. Is focusing on the wrong things when it comes to your money. And a lot of people with a scarcity mindset focus on the wrong things because they were never taught how to focus on the right things when it comes to your money.

So here are some of the big multimillion dollar decisions that you need to understand. Now, one big thing I'll note is with each of these decisions, we also like to factor in opportunity cost. If you don't know what opportunity cost is, that means how much money would this money be worth if you also invested those dollars?

That's what takes six figure decisions and turns them into million dollar decisions. Is that opportunity cost. It is a really powerful way to think about your money. So housing is the number one expense for most people, and so controlling your housing expenses is going to be really, really important because if you buy way too much house, if you're spending more than 30% of your income every single month on housing, you are spending too much on housing.

You need to make sure that your housing spend is below 30% of your income. So if you're renting out a luxury unit, or you're living in a really high cost of living area, but you cannot afford that, that means that you are most likely house poor or spending too much on housing. Now, if you are in a big city like.

San Francisco or New York and housing is really high, then you're gonna need to sacrifice somewhere else, like transportation or some of these other big areas in order to make that fit into your budget. Where you live matters, and it matters tremendously when it comes to building wealth, and some people will struggle more building wealth because of where they live.

Number two is transportation costs. Way too many people in the US right now are spending way too much on their car payments, but not just their car payment. They go well beyond that and spend way too much money on transportation costs alone because buying the brand new fancy $70,000 SUV comes with higher insurance costs.

It can come with a higher gas bill. And all of these things factored in means that your transportation costs will rise over time. And all this to get from point A to point B is not worth it. A car is a depreciating asset. It's not like it's an asset that goes up in value over time. It goes down in value over time.

And so this can absolutely kill your wealth building ability if you get a brand new car every. Three years. So we have a rule called the 24 7 10 method, meaning you put 20% down on a car, your payments on that car, if you're not paying cash, should be four years or less. You should have 7% or less of your income spent on the car payments, and you should drive that car for 10 years or longer.

Okay? So that's how we think about. Cars and how we want you to think about transportation costs. Next, number three is asset allocation, meaning not investing or being too conservative with your money and having the wrong asset allocation can be a multimillion dollar decision. For example, if you are earning a four or 5% rate of return on your portfolio and you're in your twenties and you have a really long time horizon before retirement, that could be detrimental to the long-term impact of what your portfolio can be.

So you wanna make sure that you have the right asset allocation, meaning the right mix of stocks and bonds in your portfolio based on what your goals are. So this comes down to having an investment plan in place and making sure that that plan is something that's going to help you over time. This is why it's really important to have a financial team in your corner and or listening to podcasts like this so that you can have an understanding of how to put those plans in place.

Four is investment fees. This is a really, really high impact multimillion dollar decision. Investment fees can make or break your portfolio and will cost you well over a million dollars if you are not careful. For example, we have talked about this before in the past, but if someone had a $5 million portfolio that they built up over the course of 40 years and they had a 1% fee on that portfolio, their portfolio value is gonna get reduced.

1.5. Million dollars because they had an additional 1% fee. In addition, if that fee was 1.5%, their portfolio value is gonna go down over $2 million just from this small fee. So you have to make sure that you are controlling investment fees. It is for sure a multimillion dollar decision. A couple of other ones, and I encourage you to listen to the entire episode where we talk about the million dollar.

Money decisions, but there are things like interest rates on debts that can absolutely destroy your wealth building ability. You need to make sure that your interest rates are up below 6% on all of your debt. Otherwise, you need to pay it off because it's a pants on fire. Emergency, your education decisions are a million dollar decision.

Going to the fancy school, that's $200,000 per year instead of the. State school that's $15,000 per year can absolutely set you back decades when it comes to your finances, career and income growth. Growing your income is one of the most powerful things that you can do. It is a million dollar decision.

To learn the skill of negotiating your salary, you need to have that skill that is very important. And a lifestyle. Inflation is another one that could absolutely kill your wealth. Now, some lifestyle inflation is good, meaning as your income increases, you spend more on things. You get the bigger house, you get the fancier car, you get the nicer groceries.

That's completely fine. But you need to make sure it's controlled so when your income increases, 50% goes towards future, you 50% goes towards current you where you can enjoy that money. Big rule of thumb here that I want you to understand on this one is I want you to focus on the million dollar decisions and not the $10 decisions.

That is what is going to change your financial life and what I want you to focus and optimize your time on. Number three is worrying about things they can't control or playing small. So broke people stay stuck because they waste their energy on things they cannot change. What if the market crashes?

What if the Fed raises interest rates? What if the new president ruins the economy? Here's the truth. You can't control the Fed. You can't control what the president does. You can't control some of these economic indicators that are happening right now, but what you can control is your actions with your finances, and so.

Focusing more on the things that you can control and reducing the amount of time that you're reacting to things within the news is what is going to allow you to build wealth? Wealthy people? Look at all the wealthy people around you that you know. Did they worry about what's happening on the news right now, or did they get up every single morning?

They start taking action on building their career or building their business or building up their financial situation in a way that is going to benefit them in the long run. It's going to be the latter, and that is what I want for each and every single one of you as well. As you go through building wealth, here's some things you can't control.

I'll give you a bunch of examples. So this hits home market. Dips or recessions are things that you can't control. And guess what? You also can't predict them. Where a lot of people think they can predict market dips and recessions, you absolutely cannot. And if somebody tells you that they can predict a market dip or recession, you need to write that person off immediately.

Inflation trends. Inflation is not something you can control. It's something you're going to have to deal with, but you cannot control. Inflation. Trends who gets elected is not something you can control. You can cast your vote, but that's all you can do. And I encourage everybody to go out and cast their vote, but that's all you can do.

You cannot control who gets elected. The next crisis in the news. There has been crisis after crisis after crisis for decades, and the market continues to go in which direction. If you pull out a stock market chart and put on the longest time horizon within that stock market chart, what direction does it go in the long run?

This is why I am a long-term investor. This is why most listeners of this podcast are long-term investors, because we know the market goes in one direction over the course of. The long run. What else you can't control is what your friends and family think about your financial goals. That is something that a lot of people struggle with.

If you have specific financial goals or you want to do things in a specific way and people in your life are pushing back, you cannot control that, but you don't have to listen to 'em if you don't want to or what the latest TikTok trend or finance trend is, or what other people are doing that contradicts your.

Plan, let me tell you right now, there is a lot of bad information out there online, a ton of bad information out there online, and even stuff. When I talk about specific things, do your due diligence, do your homework and trust, but verify when it comes to some of this stuff, you need to make sure that you understand.

What you're doing and what you're investing in before you go about and taking action on it. Now, here are some things that you can control and things that you can focus on, how much you save and invest every single month. Automating your finances so you don't have to lift a finger when it comes to managing your money.

Tracking your net worth, reducing lifestyle creep, increasing your income, learning a new skill that is going to help you earn more throughout the rest of your life, or following a long-term plan and sticking. To it. These are all the things that you could focus on, and these are the things that you can control.

I want you to spend more time doing those things because that's it. That is the entire game. So if you feel like you are anxious about the news, you feel like you are anxious about the things that are going on, here's a couple of tips for you that I hope will help you out. Number one is to zoom out. Now, you hear people talk about this all the time, but when the market is going up and down day in and day out, and you're looking at the market and it's going crazy, and you're like, oh my goodness, this is so crazy.

Should I get outta the market? Should I stay invested? What do I do right now? I want you to zoom out and look at the market over the long run. What happens to the market over the long run? That is going to give you the consistency because time in the market always beats timing the market. I'm gonna say louder for people in the back time in the market, always beats timing.

The markets do not think you are some professional money manager and you know when to get out. It is amazing how many people think they know when to get in and get out, and most of the time. They are wrong. Number two is to build a rule-based system. What do I mean by that? That means to set up auto investments, choose your index funds and understand what your system is for that.

Use a consistent strategy and remove emotions from the process so that you can remove stress because this is how you do it. Make it black and white for yourself. Hey, I'm gonna buy these three index funds consistently over the course of the next 40 years, and that's what I'm gonna do. I'm gonna auto invests my money into my my emergency fund until I have six months of expenses saved up, and that's what I'm gonna do.

I'm going to continue with my consistent strategy in order to make sure that I can build wealth long term. Three is if news stresses you out, limit your news intake. So we have a new show called The Business Show that I've talked about a number of times on here, but the business show, it's the news. And the reason why I created this show is I was so sick of the doom and gloom on the news where I am reporting the news.

And then if it is something that is doom and gloom, I am gonna tell you. Don't worry about it. That's the entire goal of the show is to reduce your stress and anxiety around news and to realize that a lot of this stuff, short term is not something that you need to worry about. It can impact your money, it can impact how much things cost, it can impact certain things.

But we are gonna ride through this thing together. So if you're not subscribed to the business show, check it out. If you like news, uh, journal on what you can do. So think through. Okay. If you're getting stressed out about a situation and you're like, okay, the inflation rates are rising, or tariffs are absolutely destroying my finances, take out a piece of paper and start getting some clarity on this.

Well, what are some things I can do to make sure I combat this? Or what are some things I can do to ensure that my financial security is intact in this situation? Sometimes the best thing you could do is nothing. And that's what I want for a lot of people to understand is nothing is sometimes the best action overall.

And so those are some things I want you to think through. But focusing on what you can't control is a poverty habit. Focusing on what you can control is a wealth building superpower Act accordingly. Number four is ignoring real money problems with an action. So most people don't need more information.

They need to stop hiding from their money problems. There are way too many people out there who have money problems and they're like, I'm just not gonna do anything about it. They know they're in debt, they know they're not saving enough. They know they have no plan, and instead of taking action they freeze.

Now this may be some of you out there who you have frozen 'cause you just don't know what to do. You have been grinding so long. You're so busy with work and your family and your kids. You just don't know what to do next, and so part of the goal of this podcast is to make that easier for you. That is my entire goal with this, is to bring you as much value as possible by making finances.

Easier, or if you are someone who freezes, maybe you distract yourself with these really small little wins. Hey, I didn't buy a latte all month this month, or I saved $49 this month by eating out less. Those are all fantastic things, but they don't always move the needle depending on your financial situation.

So here's the truth, ignoring the problem. Doesn't make it go away. In fact, it makes it get a lot worse if you ignore the problem. So every day you wait is another day you are losing to mounting debt or compound interest or growing financial stress. And so what I want you to do is think about this. Here are some common money problems people ignore.

'cause I want you to understand what I'm talking about here. Carrying credit card debt and only making minimum payments. If you are someone who has credit card debt, which is a high interest debt and you're only making minimum payments, you are going further and further backwards every single month. And I need you to understand this.

This is a very important thing. If you have credit card debt, it is a pants on fire emergency, you need to pay it off. We have a free debt course if you go to master money.co/courses, uh, that will teach you how to put together a debt payoff plan. Now, not knowing how much interest you're actually paying is another thing that people ignore.

They go, they sign up for the car loan and they have no idea what the interest rate is, and they don't really care. They're not gonna deal with it 'cause they know they're not gonna sell the car. You could have a 12% interest rate on that car and it would take you an extra decade to pay off, or it's gonna cost you double what you actually bought it for.

And that's what I think a lot of people need to understand is that there's a huge impact on the amount that you're spending or not having an emergency fund to protect their finances against things that will happen in life. Life is going to happen. You need to have cash on hand to solve your money problems.

When they come up, not investing because they're afraid or don't know how is another one? Well, we need to get together. We need to learn how to invest, and we need to take the simplest path possible to getting started investing. And so taking that next step. Now, if you're that person, we have a free investing for beginners course.

If you just go to mastermind dot coast slash investing for beginners, I'm plugging a lot of stuff today, but they all are falling right into my lap here. Uh, not tracking, spending or a basic budget or letting lifestyle creep. Eat up every extra dollar. So here's how to stop ignoring and to start fixing.

'cause I wanna give you action points and things that you can actually do right now in order to fix your financial problems. If you're watching me on YouTube, my hands are flailing everywhere 'cause I get really passionate about this stuff. Uh, but let's talk through these a little bit. First, you need to face the numbers and facing the numbers means you need to look at your debt.

You need to look at your balances. You need to look at your interest rates, and you need to go through and face those numbers. Secondly is you need to start tracking your net worth. When you're facing the numbers, you may be in debt and have a negative net worth. This is your assets minus your liabilities.

If you wanna learn how to do that, we have a bunch of episodes on it teaching you how to track your net worth. Or maybe you need to also audit your spending. And so we talk about that a ton too, on how to audit your spending. But those are some of the things that you need to do is start facing the numbers when it comes to your finances.

Then you need to start creating a simple plan. Well, I just taught you how to set money goals, but now we need to create a plan in place, and it doesn't have to be perfect. One thing I want most people to understand right now is if your financial plan doesn't work the first time when you set it up, who cares?

Adjust and try again. This is not a situation where you're perfect. I have never had a perfect financial month in my entire life. I guarantee there are three Amazon boxes at my front door this week that are something that I just frivolously spend money on and I'm gonna regret later on. Nobody has a perfect month when it comes to spending or budgeting or putting their money together.

If somebody tells you they do, then they are either way too optimized or they're lying to you. Also, when you're creating this simple plan, I also want you to focus on one issue at a time. Maybe it's debt first. Maybe it's savings, maybe it's investing. Usually if it's between those three, let's do debt first and make sure we get that paid down.

Three is also try to automate everything. Auto transfers to debt, auto transfers to savings, auto transfers to your investing. All of this is gonna be really important to help you move towards that. And if you need to start small and in scale, 10 extra dollars towards debt, $25 into investing a hundred dollars into your emergency fund.

All of these are gonna have a long-term impact, but it's gonna get you started. It's gonna get the train rolling your. Pushing that cart down the hill so that you can start to build up this wealth building snowball that is going to make a massive, massive difference in the long run. Now, if you don't know where to start, you feel like you continuously keep freezing and you are pulling your hair out, get help.

Ask somebody for help. Talk to a money coach. Go talk to a financial planner who actually knows what they're doing, and they're not just trying to charge you out the wazoo for no help. Okay? Go talk to an accountant and get your tax situation lined up, but start asking people for help and learning more.

Read and learn as much as you possibly can, and subscribe to this podcast. We'll help you as much as we possibly can throughout this entire process. Five is spending without intention. So spending money isn't the problem. Spending without intention is a huge problem. Now, money isn't something that's just meant to be hoarded up in cash.

It's meant to be used to enjoy life, to take care of your family, to build the future that you want money. Is a tool, and you need to use it that way accordingly. This is not something where we're gonna hoard a bunch of cash under our mattress like a drug dealer. We're gonna stick it into the safe in our bedroom.

What we're gonna do with our money is we're gonna utilize it for things that we want to get out of life. Maybe it's financial freedom, so investing your dollars into your retirement accounts is what you wanna spend your money on. Maybe you wanna go on more family vacations, maybe you wanna spend more time with your kids or your aging parents.

All of these are amazing use cases for money, and it depends on you and your specific situation. I feel like there's way too many people out there who are like, Ooh, I, I spent too much money today, and they just feel guilty about it. But meanwhile, what they spent money on was an amazing experience with their family.

Maybe you went to a a football game or a Formula One race, or you went out on vacation, or you took a family day trip down to the beach. All of these are amazing things that you can spend your dollars on. And if you feel guilty about this, we need to reframe the way that you are spending your dollars.

'cause I want you to spend more on the things that you love, but less on the things that you hate spending money on. Now, obviously you gotta spend money on bills. That's not what I'm talking about. What I'm talking about is the frivolous trips that you take to target that help you feel better for five minutes, or the random Amazon purchases that you buy in the middle of the night on Friday nights.

Those are the types of things that I'm talking about where I want you to spend. Less on those specific things. Intentional spending means three things. It means you know what's worth spending money on and what isn't. It means you align your spending with your goals and your values and your season of life, and it means you give yourself permission to enjoy your money.

Some of us just have a really hard time giving ourselves permission to enjoy our money. I was one of those people, I completely had a mindset shift, and it was amazing how much easier life is when it comes to your finances, when you give yourself that permission. So how do you spend money with intention?

Let's talk about this step by step. One is you wanna define your values. Ask yourself, what do I love spending money on? Is it travel? Is it great experiences? Is it helping others? Is it a beautiful home? What do you love spending your dollars on? What do you wanna make it rain on when it comes to spending more money?

I. And then make a list. These are your value categories. I want you to write this down. Put it in your phone. I don't care where you put it, but make this list. Now, audit your current spending. So if you spend over the course of the last 30 to 90 days, look at what you spent your money on and pull out your banking credit card statements.

Highlight the areas that are frivolous spending. It's places that you do not want your money going there anymore. So are there a bunch of Walmart trips or are there a bunch of target trips that you don't even remember what the heck you bought when you bought these things? Or is there a bunch of Amazon light items?

Or what about the 12 different Apple charges that we get on our phone and we don't think twice? I got one for $10. I got one for 7 99, I got three for 99 cents. I don't even know what these charges are. Let's look at all those different things and figure out what we are spending money on that we could care less about.

Three, we are going to cut the waste. I want you to cut out all the waste and we're gonna take this chunk of money and do something really, really cool with it. Cancel all the subscriptions you don't use. Redirect that spending towards what actually matters. Boy oh boy, is it amazing When you start doing this, you start reallocating money.

Don't leave it commingled in your checking account. You actually have to take action with it, with the CIA method. So you cut, identify, and then take. Action and automate towards the actual place that you want that money to go, and then build a values-based budget. If you do not budget right now or don't have a spending plan, it is one of the things that's really gonna help you When you wanna spend more on things that you value and then you want to have that spending plan in place.

Spending money is not the enemy. Spending money does not mean that you are bad with your finances, but spending money on things that you do not value is what is the true enemy. I want you to change the way you think about that. Number six is letting your money beliefs become reality. So your beliefs with money shape your reality With money.

If you think money is evil, you'll subconsciously push it away. If you believe you're bad with money, you're going to act like it. And if you think I'll never be rich, then you probably won't. You have no idea how powerful our words actually are and how powerful are. Thoughts actually are. And so you need to make sure that you need to realize that your inner money scripts are running the show.

Whatever monologue that you're playing in your head is running, what actions you take day in and day out. And if you're someone who thinks like this, you're gonna be repeating the same cycle over and over and over again. Here's something I want you to understand. Your beliefs, build your behavior. Your beliefs are building your behavior.

Every time you think about something, if you think that is true, it is building up your behavior. So entrepreneurs all know this. To be an entrepreneur, you have to be pretty positive in some pretty heavy and difficult situations. Can't make payroll this month. We're gonna find a way to make payroll. If you can't figure out how to raise some capital, we're gonna have to find a way to raise capital.

But you have to stay positive through all these very difficult things. But I want you also, if you're struggling with your money right now. I want you to figure out a way to turn it around. Here are some common things that people say to themselves. I'm just not good with money. You need to reframe that.

People like me just never get ahead. I believe every single person in this world can build wealth and anybody can get ahead, which is the purpose of this podcast. Money always just disappears somehow. Well, if money always is disappearing, we need to put a plan together in order to track it properly. I'll start saving when I make more.

This is a big one. A lot of people do. Oh my God. Goodness. I will start saving when I start making more. We need to put a plan together to start making more so that you can start saving. Rich people are greedy. Okay, so this is one that we could do a whole podcast episode on, but just thinking that all the time is gonna be something that is detrimental to your finances.

You have to work 80 hours a week to be wealthy, and people think hustling all the time is something that is what you have to do. All of these, you know what all of these things do. They create financial ceilings on your life, and the longer you hold onto them, the longer you will stay stuck. So instead, let's try to replace these limiting beliefs with some abundant ones because your mindset is everything when it comes to building wealth.

Identify the belief as number one. The first thing I want you to do, and I want you to write down what you actually think about money and be brutally honest. I don't want any filters here. This is between you and yourself. Write down what you actually think about money. Number two is it's time to change that belief.

So how can we change that belief and ask yourself, is this always true? Where did I learn this? Is this actually serving me in a positive way, or is it just a negative thought that I'm always going to think and it's giving me an out as an excuse. Number three is I want you to rewrite this narrative.

Replace it with something that is empowering. So instead of saying, I'm bad with money. Say, I'm learning to master my money every single day. Instead of saying, I'm never going to be rich, say I'm building wealth. One smart choice at a time. My friends, your words are so incredibly powerful and you need to figure out how to flip this script, and then we're gonna reinforce this with action.

So we are gonna start stacking small wins. And every smart money move that you make is gonna build more confidence, and confidence is going to reinforce that new belief. So you gotta take action on these new beliefs in order to make them concrete within your mind, and then surround yourself with people with positive attitudes.

If you surround yourself with people who are just all negative about money and they're all just in this negative place, you need to make sure that you are surrounding yourself with people who are also positive around that. Now remember this, if your beliefs are broken, your bank account will be too.

Number seven is not learning to master money psychology. Now this is one that we are gonna have an entire episode on coming up in the next coming week or so, and it is gonna be one of the most important things that you need to understand is your money psychology. Morgan Hauser wrote an entire book on it called The Psychology of Money, and it is one of the most powerful things that I think most people need to understand.

Money isn't just math, it's mindset. In fact, 90% of building wealth comes down to your mindset, and it only about 10% comes down to your head knowledge. That's why mastering money psychology is one of the most important financial skills that you can develop. Now, why is mastering money psychology so important?

First, it helps you stay consistent when motivation fades, we cannot rely on our willpower as one of the most important things you need to do. Two, it stops self-sabotage when you are making progress. Three, it makes investing feel normal. Not scary when the market's going up and down. Four, it gives you the tools to fight fear, shame, and guilt and comparison.

Understanding your money psychology is gonna help you overcome any challenges that you have. Five, it builds long-term habits instead of short-term hacks. It helps you make more aligned decisions and not emotional decisions. Your emotions can destroy your finances if you do not get them in check, and so this is going to help you as mastering money psychology, and it rewires your relationship with money to serve you.

And to not stress you. And so to master your money psychology, you need to know a couple of things. One, you need to know your triggers, meaning what makes you spend when you don't want to, or what causes you to avoid checking your bank account or identify emotional patterns tied to money decisions. When you get stressed out, do you start spending money?

Think about what those patterns are. Two is I want you to build self-awareness. I want you to think about some of these money thoughts that come up. I want you to write 'em down and I want you to ask yourself, what emotion is driving this decision? What is actually driving this decision forward and making me believe that this is the best decision going forward?

Track not just the purchase, but the why behind it. I want you to think through the why and why you actually did this specific purchase and then create guardrails, not just goals. And so using automation to remove real power in the equation is the number one thing I want you to do. It helps you. Solve this problem pretty quickly, so you're not relying on your willpower, you're not relying on your motivation or your emotions to get you through this, and I want you to design a system that makes good behavior easier.

The most helpful thing for me when it comes to my money psychology is continuously learning and continuously reading. So I try to read a book every single week. I listen to a lot of business, financial, motivational podcasts that help me reinforce. These positive thoughts on what I wanna do with my money going forward.

Because if you don't learn to master your money mindset, your emotions will master your money. But when you get your psychology right, wealth building becomes natural, and that's what I want for each and every single one of you. So we're gonna do an entire episode on that coming up in the next week. So make sure you're.

Following this podcast if you're not already. Now, listen, thank you guys so much for being here on this episode. If you found value on this episode, share it with a coworker, a family member, or a friend. Also, if you enjoyed the show, consider leaving that five star rating and review. Cannot. Thank you guys enough for being here again, and we will see you on the next episode.