Wealth is not a color, gender, person, place or thing.  It is not exclusive to a specific demographic.  It’s a mindset and a series of habits that if performed consistently attract prosperity and abundance.  

While there is a significant wealth gap is this country, there are also a lot of habits that people consciously or unconsciously do to prevent wealth accumulation.  

Below are 10 money habits that you should leave in the past if you want to build lasting wealth.

“You don’t have to be smarter than the rest.  You just need to be more discipline than the rest.” – Warren Buffet

Spending More Than You Earn

Credit can give you a false sense of buying power and enable you to spend well beyond your means. People mistakenly or purposely supplement their lifestyle with hopes that they will pay it back in the future. However, what typically happens (which the banks know you will do) is you will only pay a portion of what you spend and the debt will gradually accumulate.  

Honestly, it does not matter how much you earn if you consistently overspend that amount.  You have heard of celebrities and athletes filing for bankruptcy, right? Was it because they did not earn enough? Highly unlikely.  It was because they spent way more than they could manage.  

Get honest about how much you earn and stop using credit to fund your lifestyle.

Not Paying Yourself First

If you are not paying yourself, you are disrespecting your time and money. One of the first bills you should pay (besides your taxes, which is automatic) is a bill to yourself.  Saving in your cash reserve or investment accounts should be a mandatory expense.  

Too often, people save what is left over rather than spending what is left AFTER SAVING.  They will buy clothes and go out to dinner and then say there is no money to save.  

Make your financial future a priority.  Evaluate your current spending habits and determine what could be set aside for saving. Pay yourself first and make it automatic so you do not have to think about it.  

Put some RESPECT on your check! 

Relying Only on One Stream of Income

“Don’t put all your eggs in one basket.” “Diversification is key.”  We have all heard these statements and yet we continue to allow our job to be our ONLY source of income.  

Yes, your job may pay well, but what if they stop paying all together? They have that option, but what are you going to do.  As valuable as you are as an employee, your salary and benefits are an expense to the company.  Do not forget that.

Even the government withheld pay from their employees for over a month! Yes, that good government job. This demonstrates that there are no secure jobs.  If this isn’t a flaming example about no job security, just google the word ‘company downsizing’ to see the latest company announcements.  

Diversification is not just for investments, it is for your income as well.

The average millionaire has at least 7 streams of income.  If you only have one or two, there is some work to do. 

Believing Your Salary is Your Earning Potential

Just because your employer pays you $50K does not mean you can only earn $50K.  That is just how much THEY will pay you for your skillset. No one says that you cannot offer your services and products outside of your employer (unless you have a conflict of interest agreement.  Then you need to offer a different skillset.).

You can freelance, bake cakes, teach English, sell on Amazon, drive for a ridesharing company, and so much more.  

Your earning potential is only limited by your imagination. Whatever you believe you can earn, you can earn.  The question is, what do you believe?  

This also doesn’t mean that you have to have 10 different jobs either.  Yes, a part time job is an additional source of income, but you have gifts that can be shared through the power of the internet and your local community. Find a way to leverage the internet. 

Do not just limit your earnings to a W-2.  (Besides, W-2 earners are taxed the highest anyway.  

Starting a business and/or buying income producing assets are other effective strategies to build wealth.

Think outside of your current employment for income.  What do people typically ask you about? What do you enjoy talking about? Find an audience and monetize it.  

Wearing Your Worth Over Net Worth

This one might step on a few toes.  So, you have a Gucci belt, Louie Vuitton bag, and Louboutin shoes with zero net worth? Or you have a luxury vehicle but say cannot afford life insurance.  It’s not to say that you cannot have luxury items, because abundance is available to you.  However, let’s get your financial priorities in order.

Stop trying to impress people with what you are wearing.  The games and the façade must end.  You are the value to the clothes; the clothes do not give you value.  Please allow that to sink in.  

Recognize your worth and the only reason why the clothes are perceived as valuable is because you gave it value.  

Take more pride in having money in your bank account, than on your back or on your feet.  

Again, it’s ok to want these items, but not at the expense of your financially future.  A better plan is to build your wealth and have your assets pay for those items instead.

It’s the best of both worlds.  

Buying Things Because It Is on Sale

Advertisers know how you think.  They study your weaknesses, habits, and preferences. It’s their job to entice you with coupons to lure you into the store to buy things you really don’t need.  

Too many times, you purchase things that are on sale JUST because it’s discounted.  Learn to say no or not yet if you do not need it at the moment. Trust me, there will be another sale.  

Use what you currently have and buy what you need.  

Believing Wealth is For Them and Not for You

People may discriminate, but money does not.  Money flows to the person who is providing the best service and is open to abundance. Stop believing that being wealthy is not obtainable because it is.  

You just need to understand the rules of money and how to make it flow to you rather than slipping through your hands.

Believe that you deserve it and that there is more than enough to go around.  

Now, some may gloss over this, but even though this is listed as #7, it really should be #1 because it is that important.  

Believe that you can be wealthy and watch the universe respond. 

Waiting to Start Investing in the Market

The greatest asset you have in investing is time in the market.  The power of compound interest will accelerate your wealth building over time. The earlier you start, the greater your return will be.  

You also do not need to be completely debt free to start investing.  However, you do need to have cash reserve and controlled spending habits because you should not be investing money you need to live.  

Depending on how much debt you have, you could be waiting years before you are officially debt free. If this is your strategy, that is fine. However, the opportunity cost is the compound interest you could have earned in the market.  You cannot make up time.  The more time you have in the market, the better.  

At a minimum, if your company offers a 401K, you need to contribute up to the match.  If not, you are giving away free money.

Ignoring Financial Education Because You Think You Know Everything

Financial education isn’t taught in most public schools or universities.  So, if you did not actively seek out this information, it’s likely that you were self-taught through observation from your parents, friends, or advertisers.   More times than not, that’s the blind leading the blind.  

For some reason as adults, there is this fear of asking questions or for help because you do not want to look silly.  Truthfully, choosing not to ask for help is more damaging than a brief moment of embarrassment.  Secretly, the person next to you is grateful that you had the courage to speak up because they were afraid to ask. 

Stop suffering in silence and trying to figure it out on your own.  Your wasting time and wealth building years.  Ask questions.  Seek the information.       

Investing in yourself is the best investment you can.  It is never too late to learn something new or enhance your skills.

Here are a few books to help you get started:

The Richest Man in Babylon by George S. Carson

The Millionaire Next Door by Thomas Stanley

One Page Financial Plan by Carl Richards

Not Tracking Your Spending

If you lose sight of how much money you are spending, you will probably be shocked by how much you are spending.  Regardless of your income, developing a tracking system to monitor how much you are spending per category is a good idea.

You must be actively engaged in managing your money.  

The wealthy direct their money where to go, the poor ask where did my money go?  Demand your money WORK FOR YOU and not the other way around.  

Bonus – Believing the Lottery Is Your Path to Wealth

The likelihood of winning the lottery is one in 175 million.  You are more likely to be struck by lightning not once, but twice before you win the lottery.

I get it.  If you don’t play, you can’t win.  But a lot of you all are losing the lottery daily so establish a more solid plan that you can manage.   

If you choose play a ticket here and there, then ok, but don’t make that your only path to wealth. You have better chances of being an entrepreneur and creating your own path to wealth.  

Check out this post for 10 examples of millionaires who came from humble beginnings and amassed success without the lottery.   

If you are serious about wealth building, let’s leave these money habits in the past.

That’s getting your FINANCES ON POINT. 

Drop a comment below. Which one of these habits or other habits that you are dropping to pursue generational wealth.