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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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
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.
• 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
• 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.
If you enjoyed this thread, please like, comment, and retweet the first tweet.

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:

Recommended by
Recommendations from around the web and our community.

Having multiple sources of income is a life hack! Starting a passive income stream is gold. Nice thread Kenny!