Money Habits Keeping You Poor | Nischa

Description: An experienced accountant provides a deep dive into the everyday money habits that often keep people from achieving financial freedom. The speaker shares her decade-long experience in finance, accounting, and investment banking, offering practical tips to break free from these detrimental habits. The video is a treasure trove of financial wisdom, covering topics from understanding your income and expenses to the importance of investing early.

Here are the key tips and examples from each section:

1. Paying Yourself Last (0:28 – 1:53): The speaker emphasizes the importance of paying yourself first, a concept she first encountered in Robert Kiyosaki’s book, “Rich Dad Poor Dad”. Instead of paying bills and expenses first, she suggests setting aside a minimum of 10% of your income into savings as soon as you get paid.

2. Bad Debt (1:53 – 2:31): The speaker warns against the habit of accumulating bad debt, such as using credit cards for unnecessary purchases. She advises only buying things outright in cash if you can afford them.

3. Buffer (2:31 – 3:17): The speaker stresses the importance of having a financial buffer, ideally six months’ worth of expenses. This can be achieved by consistently paying yourself first and saving.

4. Income & Expenses (3:17 – 3:57): The speaker highlights the importance of understanding your income and expenses to avoid lifestyle inflation, where your spending increases as your income rises.

5. Spending (3:57 – 4:48): The speaker discusses the importance of being mindful of your spending habits, especially if they involve expensive hobbies or unnecessary purchases.

6. Saving (4:48 – 5:37): The speaker emphasizes the importance of saving and creating more income streams. She points out that while saving has a cap, earning potential is unlimited.

7. Taxes (5:37 – 6:56): The speaker discusses the importance of understanding tax rules and using legal structures and advisors to minimize tax bills. She suggests using tax-advantaged accounts like an ISA or a Roth IRA.

8. Waiting too long to invest (6:56 – 7:59): The speaker warns against waiting too long to invest. Once you have enough savings, she suggests starting to invest so that your money can start working for you.

9. Not caring (7:59 – 8:06): The speaker concludes by emphasizing the importance of caring about your financial health and taking active steps to improve it.

This video is a must-watch for anyone looking to break free from poor money habits and start on the path to financial freedom. Remember, understanding your financial habits is the first step toward changing them.

DISCLAIMER: Information provided is for general purposes only. Seek professional advice. We do not endorse products or guarantee the accuracy of external links. Watch at your own risk. Subject to change.