Thread by Kenny | Accent Investing
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- Jan 19, 2023
- #Personalfinance
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If you break these money habits, you will be able to control your finances and accumulate wealth:
• Keeping up with the Joneses
A lot of people spend money simply to fit in or for social validation.
This results in financial insecurity and an inability to manage their finances.
The appearance game is a never-ending cycle.
Being wealthy is not the same as appearing rich.
A lot of people spend money simply to fit in or for social validation.
This results in financial insecurity and an inability to manage their finances.
The appearance game is a never-ending cycle.
Being wealthy is not the same as appearing rich.
• Not avoiding lifestyle creep
Inflating a lifestyle that you can't afford is a recipe for a financial disaster.
You end up in debt, pay interest, and stay in poverty.
There is no need to want to impress people.
People do not care about your material possessions.
Inflating a lifestyle that you can't afford is a recipe for a financial disaster.
You end up in debt, pay interest, and stay in poverty.
There is no need to want to impress people.
People do not care about your material possessions.
• Not having the right priorities
Having the right priorities is a skill in today's world.
There are still people who struggle financially but choose to buy a Gucci bag rather than invest.
Often times, it is these small decisions that make a difference.
Having the right priorities is a skill in today's world.
There are still people who struggle financially but choose to buy a Gucci bag rather than invest.
Often times, it is these small decisions that make a difference.
• Postponing retirement
The longer you delay investing, the more money you will need to have a good nest egg.
If you start investing at the age of 35, you'll need about $820/mo. to reach $1 million by the age of 65 (7% return).
But if you start at age 25, you'll need $381/mo.
The longer you delay investing, the more money you will need to have a good nest egg.
If you start investing at the age of 35, you'll need about $820/mo. to reach $1 million by the age of 65 (7% return).
But if you start at age 25, you'll need $381/mo.
• Having one source of income
It is difficult to create wealth with one income.
The more streams of income you have, the less likely you are to go broke.
Seek to generate other income by investing in appreciating assets.
That's the best way to build wealth.
It is difficult to create wealth with one income.
The more streams of income you have, the less likely you are to go broke.
Seek to generate other income by investing in appreciating assets.
That's the best way to build wealth.
• Not paying yourself first
A poor person's mentality is to receive money and spend it without saving.
A rich person's mentality is to save or invest and then spend the rest.
Rich people know that owning assets is the key to their financial stability.
A poor person's mentality is to receive money and spend it without saving.
A rich person's mentality is to save or invest and then spend the rest.
Rich people know that owning assets is the key to their financial stability.
• Not keeping record of your finances
Only by tracking your finances can you determine where your large expenses originate.
Tracking your money allows for accountability and clarity.
You can't make progress unless you have a measurement system.
Only by tracking your finances can you determine where your large expenses originate.
Tracking your money allows for accountability and clarity.
You can't make progress unless you have a measurement system.
• Spending on wants
Spending money on things that you do not need is the fastest way to stay broke.
Learn to distinguish wants from needs.
Wants are non-necessities:
• Shoes
• Watches
• Trips
• Electronics
• TV Monthly subscriptions
• New clothing
Spending money on things that you do not need is the fastest way to stay broke.
Learn to distinguish wants from needs.
Wants are non-necessities:
• Shoes
• Watches
• Trips
• Electronics
• TV Monthly subscriptions
• New clothing
Needs are necessities.
These are your basic living expenses.
• Rent or mortgage
• Utility bills
• Healthcare and/or therapy
• Medication
• Food
• Commuting
Making a distinction between wants and needs is essential if you want to build wealth.
These are your basic living expenses.
• Rent or mortgage
• Utility bills
• Healthcare and/or therapy
• Medication
• Food
• Commuting
Making a distinction between wants and needs is essential if you want to build wealth.
• Having a short-term mindset
Poor people live in the present moment and never focus on the future.
The rich are always forward-looking. They take care of their future with today's income.
This is how they prioritize their future:
• Invest
• Save
• Buy assets
Poor people live in the present moment and never focus on the future.
The rich are always forward-looking. They take care of their future with today's income.
This is how they prioritize their future:
• Invest
• Save
• Buy assets
• Accumulating debt
Ignoring your debt has consequences.
Interests increase over time. It is hard to escape the vicious cycle.
When you do not pay the debt, it leads to:
• Penalties
• Fees
• Repossession
Debt places your independence in the hands of lenders.
Ignoring your debt has consequences.
Interests increase over time. It is hard to escape the vicious cycle.
When you do not pay the debt, it leads to:
• Penalties
• Fees
• Repossession
Debt places your independence in the hands of lenders.
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I write about
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I write about
- Personal Finance
- Investing
- Wealth
Follow me @AccentInvesting for more tips.
Subscribe to receive a free guide on the top 5 ETFs to hold for life: bit.ly/AccentInvesting
