There are some millionaires who are known for having good habits such as planning and spending their money wisely, constantly educating themselves, waking-up early, and putting a great deal of time in taking care of their health.
But, there are also those millionaires who don’t quite have those same self-control habits. These millionaires lack the necessary knowledge they need towards actually keeping their wealth and money, which in the end leads to poor spending habits and eventually them being broke.
Here’s four common habits of millionaires who have gone broke:
1. Not tracking what their spending
Whether you’re a freelance writer or Warren Buffet, everyone needs a budget. When looking at your money, you should be tracking every penny you spend. So make sure you set budgets and know where every single cent goes to.
This includes the small subscriptions you may have like Netflix or some other service as well, because the more you have, the more money will be getting subtracted from your account each month.
While this is a habit that most millionaires follow, the ones who go broke are not watching and following their money. They’re doing the complete opposite. They couldn’t even tell you where it went. These people don’t even go over their bank statements or monthly bills to make sure that there aren’t any unauthorized transactions.
They sure as heck don’t look at bills from restaurants, hotels or retail purchases, much less the grocery store, to make sure that they weren’t overcharged. Usually, they recklessly spend thinking that there will always be more coming in.
In the end, these millionaires end up wasting a ton of money simply because they don’t track their spending. It may not seem like much of a problem in the beginning, but it can quickly add up. And in the end having no money becomes a problem.
2. Making Expensive and Emotional Purchases
Millionaires who are going broke have a terrible habit of making emotional purchases. For example, going on an Amazon shopping spree because they’ve had a bad day at work.
Most millionaires are frugal and known to be careful with their spending. They avoid making emotional purchases as much as possible because these types of purchases tend to be a bit more expensive than Amazon.
One thing that I find particularly interesting about the millionaires who continue to generate wealth is that many are always looking for the best deals, using coupons and are constantly analyzing their purchases, making sure they weren’t overcharged for something.
So best advice for you, is to be frugal no matter what stage of life you’re living.
3. Not Having Multiple Streams Of Income
Never ever rely on one source of income. Every millionaire that I know has multiple streams of income. In fact, there was a study conducted that came to the conclusion of millionaires having at minimum, 3 streams of income.
So never put all of your eggs in one basket.
4. Impatient, Aggressive Investing
Long term investors are patient and remain calm when making investments. Broke people pick stocks on a hunch and quickly sell when things start going downhill. These people typically don’t seek the education they need to remain profitable and rely only on their own, limited knowledge.
So the bottom line is, continuously educate yourself about your money. Protect it, watch it constantly, and take care of your money so that you, too, won’t be a broke millionaire.
Read John’s original post on “4 Bad Money Habits That Have Left Millionaires Broke”
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