in today's video I'm going to teach you how to stay poor engage in these bad money habits and they will increase your odds of staying poor so some people want to build wealth and Escape their Rat Race but not everybody wants that you've probably heard the saying More Money More Problems right so if you're looking for an effective strategy on how to continue living paycheck to paycheck then you've come to the right video so let's get started number one lifestyle inflation so if you want to stay poor engage in lifestyle inflation so essentially as you
make more money spend more money so there are many ways that you can rationalize this type of bad decision-making a common way to justify this bad money habit is to say to yourself now I'm making more money I work hard I deserve to treat myself work hard play hard so I want to tell you a true story I have a cousin that makes $40,000 a year and he spends almost all his money on Essentials he's got nothing left over to save or invest so he's not Building Wealth I have a friend that makes 120k a
year and he spends all his money on a nicer home a nicer car entertainment Etc now I know this because I do his taxes for free and I see is 401K I see his Ira capital gains his investment income and he's not saving he's not investing so my friend friend makes three times as much as my cousin but he spends it all so they're in the same boat neither of them is saving or investing they're both living paycheck to paycheck and I have an Amigo that makes 700,000 pesos a year and he spends 700,000 pesos
a year and guess what it's the same thing he's got no pesos to save or invest so it doesn't matter if you make more dollars or more pesos or more Doge if your income goes up but your spending goes up just as quickly that's called lifestyle creep and you're not going to be able to build your wealth you're going to stay poor number two if you want to stay poor pay more taxes than you're legally obligated to pay more than your fair share so when I was doing people's tax returns I was a very honest
accountant I would offer free consultations and I would not accept people as clients if my work would not justify my price so for example if I charged a small business $1,000 then I would typically end up saving them $115,000 in taxes easy usually more so I turn down so much money because I am not in the business of ripping people off personally I hate dishonest mechanics I hate dishonest dentists I hate dishonest politicians and I don't want to be like them and I will tell you this this is my honest assessment so many Americans are
overpaying their taxes and they have no idea now let me give you a crash course on what you need to do so if you just have a W2 and that's it then you don't need an accountant there's nothing that they're going to be able to do if you get to the point where you're dealing with a side hustle independent contractor sole proprietor a rental property stock options or you're just making more money which opens up options for tax planning then go get a free consultation with a tax accountant so there are many owner operated tax
practices that offer free consultations and take them up on their offer now to increase the chances of finding a good accountant check their reviews on Google or Yelp so you want to go with an accountant that has a lot of good reviews of course and here's the trick when you go to the free consultation tell them I found you based on your Google or Yelp reviews and those will be the magic blackmailing words because they're going to be forced to do a good job with you otherwise they will be deathly afraid of you leaving them
a one-star review now the best time to get a free consultation is during off seon so during tax season try to get it in January or early February because no tax accounting will give you a free consultation in March or April so you preferably want to see a CPA that's a certified public accountant but please be advised having a CPA does not mean that you're a tax expert it just means that you're competent so if you can't get a CPA try to get an EA so that's an enrolled agent if you can't get a CPA
or an EA then you're really playing with fire and you're just you're rolling the dice so just keep your guard up in that type of situation and have a healthy dose of skepticism and don't feel bad about doing a free consultation with no intention of using their services because they offered but you might end up needing their services immediately or in the future or you might end up referring someone to them so you never know number three if you want to stay poor then this one is a must spend money to show off to elevate
your status to get people to like you and to boost your ego so what are some good examples of wasting money to show off I would say bottle service in the USA big waste of money I would also say any dude with Louis Vuitton luggage or a duffel bag or a backpack it's just so embarrassing in my opinion I've seen restaurants that serve $11,000 Stakes so listen why are you trying to impress people by flaunting or wasting your hard-earned money nobody cares if they do you're attracting the wrong crowd of people and you're just you're
just setting yourself back why are you sabotaging yourself so you will see that it's not going to buy you friends or respect if you don't believe me you're free to find out yourself it's going to be an expense of regrets that keeps you poor number four if you want to stay poor then load up on the bad debt so a lot of my clients ask me this question they say Brian with my extra money should I pay down my credit card debt or put that money in the stock markets and listen it's never a special
situation it's not like oh this person's going to declare bankruptcy and wipe out their credit card debt no the questions are like Brian I'm in $10,000 of credit card debts I have an extra $4,000 should I put that $4,000 in the stock market or should I pay down my credit card debt just very straightforward like that and I asked them okay what's your credit cards interest rates and I'm like okay do you have like a introductory rate of 0% or something and they usually say no I'm paying an interest rate of 20 7% and I
just tell them straight up that just pay down your credit card debt because it doesn't make sense for you to try to make 10% in the stock markets when you're paying 27% interest on your credit card debt another form of bad debt is a car payment especially on a luxury vehicle so this is a true story my friend has car payments on his Lamborghini so please make that make sense it makes no no sense to me but this is the world that we live in I guess he told me that his auto loan has an
interest rate of 7% and number five not tracking your spending so you need to know where your money is going and listen I am not talking about budgeting I'm talking about you need to do an accounting of your money you need to account for what you're spending your money on so if you ever say that I don't know where my money is going then you clearly are not tracking your spending which which is a good way to stay poor so how are you supposed to make improvements to your finances if you don't even know how
much you're spending knowing is half the battle and it's like going back to grade school you have to show your work write it out please so are you seriously trying to do all this in your head like do you have a photographic memory or something like can you tell me with Precision how much money that you spent each month this year on eating out how much did you spend on groceries on entertainment on Transportation Etc just make it simple use a spreadsheet that's free use an app or software whatever you want and number six saving
and investing so I hear a lot of excuses for people not saving or investing money so the one that I hear the most is that okay I can only save 50 bucks I can only save a 100 bucks a month and people say that's close to nothing but I would say you know what that's better than nothing and the earlier that you start the better even if it's just a small amount it is so much better than nothing that's because of the law of compounding as time passes you have this effect where your money is
making you money and that you have more money making you more money and it's a Snowball Effect and the key is giving this process More Time by starting to save and invest as early as possible and here's my recommendation to you so this really works I would say automates your savings so as soon as your paycheck comes in heaven amounts automatically go to your retirement account or some savings account or brokerage account whatever you want and consider that money off limits so just have that money out of sight and out of mind so that's going
to make it easier for you to resist the temptation of overspending so a lot of people call this the pay yourself first method and a lot of people find this very helpful and and I'm telling you that if you automate this then you will see your money build up and you'll be pleasantly surprised in the future as you check up on your balance in a few months or a few years you're going to be like wow like I can't believe it's accumulated this much and number seven so listen if you want to stay poor this
is the classic one engage in overspending you only live once right so I don't feel the need to go further in depth on this one obviously if you're overspending then you're going to have no money left left over to save or invest you won't build your wealth and this will keep you poor I hope you enjoyed today's lesson Please Subscribe I thank you for the support and I wish you a very nice day take care
