Watch This If You're Tired of Being Broke (7 Money Mistakes)
Episode Summary:
Most people think building wealth is complicated. But the truth is, it often comes down to avoiding a few key mistakes. In this post, we’re diving into the 7 money mistakes that are keeping most people stuck in a cycle of living paycheck to paycheck. If you’re tired of being broke and want to finally get ahead, this is what you need to know.
1. Living Paycheck to Paycheck
60% of Americans live paycheck to paycheck—not just low-income earners, but even those making six figures. If you’re spending everything you earn, it’s nearly impossible to build wealth. The first step is understanding where your money is going. Start by tracking your expenses for the past three months and automate your savings. The less you have to think about it, the better.
2. Not Having a Financial Plan
Making good money but still broke? Chances are you don’t have a clear plan. A financial plan is more than just budgeting—it’s setting milestones and tracking your net worth. Apps like Empower can help you monitor all your accounts in one place, giving you a real-time view of your financial health.
3. Carrying Bad Debt
Not all debt is created equal. High-interest credit card debt, personal loans, and payday loans are designed to keep you stuck. On the flip side, good debt—like real estate mortgages—builds your wealth over time. If you want to escape the paycheck-to-paycheck cycle, eliminating bad debt is non-negotiable.
4. Ignoring Investing
Saving alone won’t make you wealthy. Inflation eats away at cash sitting in a savings account. Investing in appreciating assets—like stocks, real estate, or even Bitcoin—ensures your money grows over time. Start with as little as $50 a month; it’s about building the habit more than the amount.
5. Not Building an Emergency Fund
Nearly 57% of Americans can’t cover a $1,000 emergency. If you want financial security, you need at least three to six months of living expenses in a high-yield savings account. This buffer keeps you from selling investments at a loss when life throws you a curveball.
6. Relying on One Source of Income
In today’s world, job security is a myth. Relying solely on your 9-to-5 is risky. Building additional income streams—like rental properties, dividend stocks, or side hustles—not only boosts your income but also gives you more security.
7. Thinking More Money Will Solve Everything
More money isn’t always the answer. If you don’t fix your habits, you’ll just spend more. Building wealth is about discipline and strategy—not just earning more. Understand what 'enough' looks like for you and build towards that goal.
Final Thoughts
If you’re tired of being broke, start with these seven mistakes. Correct one at a time and watch the transformation happen. Financial freedom isn’t about hitting the lottery; it’s about building smart habits and avoiding common traps.
Want to Take the Next Step in Your Real Estate Journey?
If this post resonated with you, let’s connect! Find me on Instagram @cashflowsaga to chat about your financial freedom goals—I’d love to help however I can.
Looking for more resources? Download my free investing tools or explore my 1:1 coaching program, Rental Property Investing 101, to fast-track your success.
Stay committed to the journey, my friend. Your future self will thank you! 🚀
