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You probably know Warren Buffett as one of the wealthiest people in the world. As CEO of Berkshire Hathaway, a company he has built over time, Buffett has accumulated a net worth of $98.2 billion. That's pretty remarkable! 

But what's even more impressive than his billions is his frugal habits and astute financial mindset. The business magnate is widely recognized for his ability to identify profitable opportunities, negotiate deals, and invest wisely. 

And while it may seem like there aren't many secrets left when it comes to accumulating wealth, some surprising habits have allowed Mr. Buffett to amass so much capital in such a short period. 

In this video, we'll look at 10 Money habits that keep most people broke & poor and how you can disintegrate yourself from such habits. 

Money doesn't just appear once you get your first job and start making money. You need to have good money habits to save money, invest it and have it work for you rather than against you. 

It's imperative for young people who are just starting their careers and don't have much earnings yet. Having good money habits is key to a prosperous financial future. 

Without them, not only will your bank account stay empty, but also your life will be filled with stress, anxiety, and desperation every time you look at it. However, having bad habits won't make you poor now but rather set you up for poverty in the future when retirement comes along and your savings account is virtually non-existent. 

From not forming a healthy money habit to inflating your lifestyle, here are the 10 Money Habits that keep you broke and poor.

10. Not Forming An Healthy Money Habit 

If you're not disciplined with your spending and don't have a budget, it's easy to overspend and find yourself in debt. It's essential to ensure you're investing your money wisely and not just blindly throwing it into savings accounts or keeping it all in cash. 

Bad Money habits can also, in turn, lead to financial stress and difficulty making ends meet. Therefore, one must be mindful of one's spending habits and make a conscious effort to form healthy money habits. 

Warren Buffett is one of the most successful investors in history, and he attributes much of his success to his healthy money habits. He advises people to invest in quality companies with a competitive advantage and reinvest their earnings into the business. 

"Most behavior is habitual," "The chains of habit are too light to be felt until they are too heavy to be broken," Buffett stated in a 2007 speech at the University of Florida. 

He further stated that it's best to Work on developing good money habits while breaking bad ones.

By following these simple tips, you can start building your wealth instead of just watching others get richer. 

9. Not Having A Budget 

If you're not careful, money can slip through your fingers without realizing it. This phenomenon is especially true if you don't have a budget. 

Without a budget, it's easy to overspend on things you may not even need. For example, you might go out to eat more often than you should or buy unnecessary items simply because they're on sale. 

It's important to remember that just because something is on sale doesn't mean that you have to buy it. Excessive buying is one of the quickest ways to derail your finances. 

You must start tracking your spending and creating a budget to get ahead financially. These will help you stay mindful of your spending habits and make better decisions with your money. 

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8. Lack Of Emergency Savings 

It's no secret that one of the key reasons people are broke and poor is that they don't have any emergency savings. This statement was famously summed up by Warren Buffett, who once said: "If you don't find a way to make money while you sleep, you will work until you die." 

Why is having emergency savings so important? Because it gives you a buffer in case something goes wrong. Life is unpredictable, and things can go wrong at any time. If you don't have emergency savings, you're much more likely to end up in debt if something unexpected arises. 

There are two main reasons why people don't have emergency savings. The first is that they don't earn enough money. If your income is low, it can be challenging to save anything at all. The second reason is that people often spend everything they earn instead of putting some aside for a rainy day. 

To get out of the cycle of being broke and poor, you must start building up an emergency fund. Aim to save at least 3-6 months' worth of living expenses so that you know you'll be able to cover yourself if something wrong happens. And remember, start small if you need to – even $5 a week can add up over time! 

7. Keeping Up With The Joneses

Trying to keep up with your friends and neighbors is a surefire way to spend more than you can afford. It would be best if you focused on your financial goals and not what others have. 

If you're like most people, you're probably keeping up with the Joneses. You know who they are – the family down the street with the new car, the big house, and the perfect life. They always seem to have money, and you can't help but wonder how they do it. 

The truth is, the Joneses are probably just like you – they're living paycheck to paycheck, and they're in debt up to their eyeballs. The difference is they've learned to live below their means, and they save money instead of spending it. 

If you want to be like the Joneses – or even better off than them – then you need to change your money habits. Start by saving money instead of spending it. Put away at least 10% of your income into savings so that you have a cushion to fall back on when times are tough. 

By following these simple tips, you can stop chasing after the Jones. 

6. Not Tracking Your Spending 

Not knowing where your money is going is a recipe for financial disaster. You need to be aware of your spending patterns in order to make changes where necessary. 

If you want to get ahead financially, you need to be aware of your spending patterns. Too many people adopt a "just wing it" approach to their finances, and as a result, they never really know where their money is going. This lack of awareness can keep you trapped in a cycle of debt and financial struggle. 

To avoid this fate, make sure to track your spending carefully. Know exactly where your money goes each month, and adjust accordingly. Buffett recommends using a simple ledger to jot down every expense so that you're always aware of where your money is going. 

This act may seem like a tedious task, but it's essential if you want to take control of your finances. Once you're tracking your spending, you can start making changes that will help you save money and reach your financial goals. 

5. Making Impulse Purchases 

We've all been there before - you see something you want and buy it without thinking twice. This act is called an impulse purchase, and it's a major money habit that can keep you broke and poor. 

Why? Because impulse purchases are made without any thought or planning, which means they're often unnecessary and can quickly add up. If you're constantly making impulse purchases, it's essential to take a step back and consider your spending habits. 

They are usually driven by emotions such as excitement, happiness, or Anger. And while they may give you short-term gratification, they will only leave you broke and in debt in the long run. 

Here are some tips to avoid making impulse purchases: 

* Make a list of what you need before going shopping. These will help you stay focused and avoid buying things you don't need. 

* Set a budget for your shopping trip and stick to it. These will prevent you from overspending on unnecessary items. 

* Avoid shopping when you're feeling emotional. If you're angry, sad, or stressed, you're more likely to make impulsive decisions that you'll regret later on. 

* Take your time when making a purchase decision. If an item is on sale, but you're not sure if you need it, wait a day or two before buying it. Chances are, you'll realize that you don't really need it after all. 

4. You Don't Diversify

If you're not diversified, you're in for a world of hurt. Buffett described diversification as Protection against Ignorance.  

That's because diversification is key to mitigating risk and ensuring that your portfolio can weather any storm. By spreading your investments across different asset classes, industries, and geographical regions, you'll be able to offset any losses in one area with gains in another. 

Without diversification, you're essentially putting all your eggs in one basket - and that's a recipe for disaster. So if you want to stay afloat financially, make sure to diversify your holdings. 

3. Lacking A Financial Plan

If you're like most Americans, you probably don't have a personal financial plan. In fact, according to Schwab's 2021 Modern Wealth Survey, less than one-third (33%) of American adults have a written financial plan. 

Without a financial plan, it's easy to make poor money decisions that can keep you broke and in debt. For example, you may be tempted to spend money impulsively on unnecessary purchases or to make impulsive decisions about major life expenses. 

A lack of financial planning can also lead to problems like not having enough saved for retirement or being unprepared for unexpected life events. 

If you want to get ahead financially, developing a written financial plan is crucial. Start by setting goals for yourself and your family. Then, create a budget and track your progress over time. You may also want to consider working with a financial planner to help you get started. 

2. Paying Lots Of Taxes

Paying taxes is an important part of living in a society. They help to fund the government and provide for the common good. However, paying taxes can also be a burden, especially when they are high.

Some people may try to avoid paying taxes, but this is usually not possible or advisable. Ultimately, everyone needs to pay their fair share of taxes in order to keep the society running smoothly.

There are a number of strategies you can employ to pay your taxes and save money. One strategy is to use a tax-advantaged account such as a 401k or an IRA. Another strategy is to itemize your deductions.

This can help you save money on your taxes by deductions for things like mortgage interest, charitable contributions, and medical expenses. You can also take advantage of tax credits, which can reduce your tax bill by up to $1,000. Finally, you can try to negotiate a payment plan with the IRS if you cannot pay your taxes in full.

1. Inflating Your Lifestyle

When you live beyond your means, you are essentially spending more money than you have, which can lead to debt and financial problems. Additionally, inflation can erode your purchasing power, making it challenging to keep up with your lifestyle. 

As a result, you may find yourself struggling to make ends meet and living a lifestyle that is far from what you can afford. 

For example, let's say you make $50,000 a year and spend $40,000 of it. You're living on 80% of your income and save 20%. But then you get a raise to $60,000 a year. What do most people do? They start spending $50,000 and living on 83% of their income. Their savings rate drops to 17%. 

Lifestyle creep can be dangerous because it means you're never really making progress in your quest to become wealthy. You're always just treading water. 

To avoid lifestyle creep, you need to be aware of it and make a conscious effort to keep your spending in check as your income increases. One way to do this is to use the 50/30/20 rule: 50% of your income for necessities like housing and food, 30% for wants like travel and entertainment, and 20% for savings and investments. 

You won't find your way out of being broke and poor if you have these ten habits holding you back. "It doesn't matter how much money you make if you don't know how to manage it," says The Millionaire Mind Show Host Dolly J. 

Now is an excellent time for personal reflection, with the new year on its way. Think about your goal, or create a new one inspired by Warren's advice. 

Kindly let us know your opinions in the comment section below. Don't hesitate to like this video and subscribe to our channel to see more videos like this. 

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