Becoming wealthy is not just about learning new habits, but also unlearning old habits.
If you are over the age of 35 and reading this, you would likely have had millions of dollars flow into your bank account over the years of your life. Yet most people over the age of 35 are not millionaires.
So where did the money go? How did it all disappear?
In this video, I talk about the habit of spending money and how it can be one of your biggest obstacles to becoming wealthy.
THE MYTH OF WEALTH CREATION
Most non-wealthy people think the reason they’re not wealthy is they don’t have enough money flowing in.
They think, “if only I received more income, I would be wealthy.”
This is a myth. Think about it. If you are over the age of 35 and reading this, you would likely have had millions of dollars flow into your bank account over the years of your life. Especially with the power of compound interest, that’s enough to make you very wealthy.
The reason you’ve not become wealthy is you put all that money towards the wrong things. That might be on eating out, expensive cars and clothes, or any kind of expense where you lose the ability to hold on to that money and let it multiply.
WHAT WE ARE TAUGHT
In Western culture, we are taught from a young age that money is for spending. Think back to when you got some money from your parents or grandparents for your 10th birthday.
The first thing they say to you is, “What are you going to spend it on?”
Of course, they mean well. However, this can be the worst kind of conditioning you can receive if your goal is to become wealthy. If you form a habit of letting all the money that flows into your life immediately flow out again, then you’ll struggle to grow any significant long term wealth.
HOW TO UNLEARN THE HABIT OF SPENDING
The first step to unlearn the habit of spending money is to stop justifying it.
When confronted with their unproductive spending habits, many people will say, “I needed to get that new car. The last one was going to break down.”
Or, “I need to buy expensive clothes. My job requires that people will take me seriously and I need to make a good impression.”
Or, “I’m too busy and I don’t have enough time to prepare lunch at home. I have no choice but to eat out for lunch every day.”
There may be some element of truth to these statements, but the reality is, these spending habits are what hold you back from becoming wealthy.
If your goal is to become wealthy, then you need to find ways to hang on to your money and invest it, even if it means making some sacrifices. Perhaps you could wake up an hour earlier every morning and give yourself time to prepare lunch, or walk to work instead of buying a new car. You’ll thank yourself later in life.