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Did you know there are some telltale signs that indicate a person will never become rich? Now, some of them are obvious, but you may be surprised at a couple of them. Kind of like how a monkey is surprised when it sees a magic trick. And you need to be aware of these so you can make sure you're headed toward the financial future you want. So in today's video, I'm going to share the five signs you'll never be rich. And if you find that these things describe you, don't freak out because we'll also cover what you need to change to build wealth and end up with a hefty nest egg. But first,
hit that like button, subscribe to the channel, and share this video with all of your friends who love a good coin trick as much as me and that monkey. Seriously, how did he do that? That was impressive. - Looks like you've got some dirty ears. - All right, let's get to it. The first indicator that a person will never become rich is especially sneaky. Some of us seem to always have it, but it can creep up on any of us at various points in time and settle down into our personality like a weed if we don't pull it out.
It prevents us from being able to take responsibility for our lives and make necessary changes. And if you have this indicator, I can almost guarantee you won't be wealthy. And that indicator is a victim mentality. Now, this is a mindset where you see yourself as a victim of circumstances and you believe external factors are to blame for your situation. So if you think you don't have enough money and feel like you can't get ahead,
What do you do? You blame the economy and inflation and your boss and your roommate's pet lizards. Basically anyone but you. This whole universe is against me. A victim mentality means you believe you have little to no control over what happens to you, what happens in your life, what happens in your money, which means you're probably not going to take responsibility for your situation and make the necessary changes to turn it around. So if you have this mindset, it almost guarantees you won't end up wealthy.
So what kind of mindset do you need? What is an indicator of future wealth? Well, basically the opposite of a victim mentality, which is a victor mentality or a growth mindset. This is the belief that you have the ability to influence your own circumstances. In our national study of millionaires, 97% of them said they believed they had control of their own financial destiny.
That's amazing. When you believe you're in control of your financial future, you're way more likely to create the right habits instead of just waiting for your circumstances to change or for opportunities to fall in your lap. You'll be more proactive and resilient, which is gonna help you on your wealth building journey. So lose the victim mentality and adopt that growth mindset. All right, the next sign you'll never be rich
seems so obvious, but recent stats suggest it may not be so obvious to everyone. Here's what I mean. According to the New York Fed, Americans' credit card debt is at a record high at over a trillion dollars. Now, that sounds to me like a lot of Americans have spent more money than they've actually earned, which is the next sign you'll never be rich. You're not living on less than you make.
And this isn't just about credit cards. I mean, this is your lifestyle. This is your debt. Student loans, car loans, HELOCs, that Venmo request from Brendan for the $17 Mic Ultra you got at the Harlem Globetrotters 2024 World Tour presented by Jersey Mike Subs. Yeah, that counts as debt too.
I'm never gonna financially recover from this. - And if you're turning to debt solutions like these, it's clear that your lifestyle is outpacing your income. Otherwise, you wouldn't need the crutch and you wouldn't be in debt. You would just save up and cash flow all of your expenses. So you gotta get realistic with the means that you have and decide to get debt out of your life. Take it off the table. Because debt robs you from your future by demanding that you pay for the past.
That sucks. So cut up the credit cards and start doing what I do. Pay with cash or a debit card. If you can't afford the new Bronco, don't take out a loan for it. There's plenty of reliable used cars you can save up for in buying cash. And when it comes to student loans, you can be a student without a student loan. Choose a school you can afford. Maybe you need to pause and save up cash, apply for scholarships and grants, and then cash flow it with part-time jobs or an education savings account.
So the bottom line here is you gotta be living on less than you make so you can have margin to build wealth. You can't build wealth if you've spent all your money. You need money to invest, and that means getting out of debt. And once you have that kind of margin, you can use money for more important things like giving, saving, and investing. Which brings me to the next one on the list. And I'll give you a hint for what this next indicator is.
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All right, here's your hint for the next indicator. It's tied to the concept of delayed gratification. That's the idea that you gotta give up a little today to have a lot more down the road. I mean, think about it. How do you ever expect to build any wealth if you're spending your entire paycheck on bills, food, debt payments, and a new 64-ounce stainless steel vacuum-insulated Stanley Quencher in rose quartz? Hey, girl!
You like my new Stanley? Don't get me wrong, solid tumbler. But you got to create some margin for saving and investing and make that a priority, emotionally and financially. And that's the next indicator you'll never be rich. You're not prioritizing saving and investing. Think of saving as defense and investing as offense.
Let's talk about saving first. The big thing we're saving for here is your emergency fund, which is crucial to building wealth. Think about it. If an expensive emergency comes up and you have to use a ton of money to fix a car, repair the roof, replace your neighbor's rare parakeet that was injured when your car went through the roof, that emergency could seriously derail your financial goals and cause you to go back into debt if you're not prepared.
And that's why I recommend having three to six months of expenses saved up in a separate savings account as a buffer between you and life. Keep it tucked away somewhere you can easily access it, but not too easily, like a high-yield savings account. And remember, this is insurance, not an investment. So don't invest your emergency savings and only use it for true emergencies. Ask yourself these three questions. Is it necessary? Is it urgent? And is it unexpected?
If the answer is yes, use your emergency fund. And no, ladies, the limited edition Cosmo Pink Stanley Cup at Target doesn't count as an emergency. Run. Okay, let's talk about the investing part.
I recommend putting 15% of your income into tax-advantaged retirement accounts like your company 401k or a Roth IRA. Now, I know that may feel like you're losing 15% of your paycheck, but you're not. You're just giving it to future you with growth after it's grown exponentially thanks to compound interest and, if it's in a Roth account, completely tax-free.
And if you start early enough and make a habit of investing 15% every single month, you can easily retire a millionaire, maybe even a multimillionaire. And here's your five-word investing strategy to make it really simple. Match beats Roth beats traditional. And if you want to know what that means, check out my video called Investing for Beginners. I'll drop a link below. But this isn't the only kind of investing you should be doing. And that brings us to the next sign you'll never be rich. Now, you may have heard me say your greatest wealth building tool is your income.
So if you want to build wealth, it makes sense to put some effort into increasing your income, right? Maybe that's side hustles, pay increases, or a better paying job or career altogether. And to do these things, you might need to do a little investing in yourself. Yeah, on your eat, pray, love journey. Treat yourself.
So the next sign you'll never be rich is you're not growing personally and professionally. Read books, take courses, get the certification, find a mentor, always be learning new things that can help you in your job and in your life. And don't neglect relationships at home or at work. Sometimes landing that opportunity or that promotion is more about who you know than what you know. And by the way, I know a lot of people think of work as some awful thing you have to do to get a paycheck and you got to work for the man. But I really hate this line of thinking.
I think if you do work you hate just for a paycheck, you're probably not going to end up rich. So instead, find work you love to do and grow in that area. That is the key to growing your income. And if you need some help in this area, check out my friend Ken Coleman. He's a fellow Ramsey personality, and he hosts a show called The Ken Coleman Show. And he's got tons of resources and books and assessments to help you find work you love to do and make great money doing it. I'll drop a link to his stuff right down there.
All right, it's time for the last thing on our list of signs you'll never be rich. You've probably heard the phrase, failing to plan is planning to fail. And you better believe this applies to your money. If you're not telling your money where to go, it's gonna be gone faster than your mom's cat when she pulls out the vacuum.
And the way to do this is by creating a budget. When you make a budget and actually do this every single month, you're giving your money purpose. You're taking control. You're giving every dollar a job. And it's very freeing. So the last indicator you won't be wealthy is you're not making a plan for every dollar.
Now, I know a lot of people get turned off by the word budget, but just think of it as an intentional spending plan. And being intentional with your money month after month, year after year, is one of the keys to building wealth. And if you want more info on how to create a budget that doesn't suck, check out my video about the best budgeting method out there, the zero-based budget. I'm gonna drop a link in the description below. All right, so those are the five signs you'll never be rich. But remember, that's only if you choose to not do anything about it.
You can choose to trade a victim mentality for a victor mentality. You can choose to live on less than you make and prioritize saving and investing and grow personally and professionally. And you can choose to make a plan for your money. So it's up to you. If you're really ready to turn over a new leaf with your money, I've got something that can help you out. I wrote a whole book on it called Breaking Free from Broke, and it's got a ton of info that's going to help you understand and avoid all the traps and villains and myths and distractions and slick marketing out there that can keep you from building wealth.
wealth. You can get a copy with the link in the description below. And if you think you're doing pretty good financially, check out this video I did to see if you're above average with money. Thanks for watching. We'll see you next time.
