FILIPINO MILLIONAIRE EXPLAINS: Money Habits Keeping You Poor

Summary

In this video, Mike reveals the key habits that kept him poor and how he overcame them to achieve financial success. He discusses the importance of having a long-term wealth plan, avoiding the temptation to compare yourself to others, and not letting greed dictate your financial decisions. Mike emphasizes the power of patience, compounding, and investing in self-education, while also stressing the need to separate spending money from savings and prioritize health. These lessons helped him achieve millionaire status in his late 20s, and he encourages viewers to avoid the same mistakes.

Takeaways

• 😀 Not having a long-term wealth plan can lead to poor financial decisions and wasted money. Make sure you have a strategy for your income and savings.
• 😀 Your financial identity, or 'money thermostat', can limit your wealth. If you see yourself as only deserving of a small amount of money, you'll find ways to stay there. Reset your financial thermostat by saving and investing out of sight.
• 😀 Stop comparing yourself to others. Trying to keep up with people who have more can lead to financial ruin. Focus on your own goals and financial journey.
• 😀 Greed and impatience can destroy your wealth. Risky investments like crypto or 'get-rich-quick' schemes can result in massive losses. Be patient and play the long game.
• 😀 Stay in your zone of genius. Don’t abandon what you’re good at in search of the next shiny opportunity. Focus on your core strengths to build wealth.
• 😀 Compounding isn’t just for money—it applies to relationships and small daily actions. Small, consistent efforts add up over time, leading to exponential growth.
• 😀 Patience is a key to building lasting wealth. Avoid trying to get rich quickly and be prepared to wait for results, whether it’s in investments, skills, or business.
• 😀 Invest in yourself. Spend money on self-education and mentorship, as they can provide the knowledge and skills necessary to build real wealth.
• 😀 Don’t sacrifice your health for wealth. Many wealthy individuals regret not prioritizing their well-being. True wealth is a balance of money, health, and happiness.
• 😀 Avoid mixing savings, investments, and daily spending. Keeping these separate prevents you from spending money that should be saved or invested, helping you build wealth more effectively.

Q & A

What is the first money habit Mike identifies as keeping him poor?

Mike's first habit that kept him poor was not having a long-term game plan for his wealth. He realized that having money in his bank account without a clear plan led him to spend it impulsively.

How does Mike describe the relationship between one's identity and their wealth?

Mike likens one's identity to a thermostat set at a specific financial level. He explains that if someone’s identity is set at a low figure (e.g., $2,000), they will unconsciously find a way to spend anything above that amount, keeping their financial situation stagnant.

What strategy does Mike recommend for preventing impulsive spending?

Mike advises automatically transferring money into separate accounts (e.g., savings or investment accounts) where it's out of sight, reducing the temptation to spend it. This helps avoid self-sabotage by disconnecting emotional spending from visible wealth.

What role does comparing yourself to others play in keeping people poor?

Mike warns against comparing yourself to others, particularly those who are wealthier, as it can lead to unnecessary spending. He shares his own experience of trying to keep up with others' lifestyles, which almost trapped him in a cycle of overspending.

How did Mike change his approach to avoid falling into the trap of 'keeping up with the Joneses'?

Mike decided to leave the U.S. and move to Asia to reduce his living costs. By living in Thailand, where his expenses were significantly lower, he could save more money and avoid the pressure of competing with others' spending habits.

What was Mike's mistake in investing during the crypto boom of 2018?

Mike admits that he let greed take over and made impulsive decisions by investing all his saved money into risky crypto projects, without proper knowledge. This led to significant losses, as greed and the desire for quick gains clouded his judgment.

Why does Mike stress the importance of sticking to one's 'zone of genius'?

Mike explains that by diverting his attention to things outside his expertise (like crypto), he not only lost money but also momentum in the area that was actually generating his income—online marketing. He advises staying focused on what you're good at.

What does Mike mean by the power of compounding, and how does it apply to wealth-building?

Mike discusses compounding not only in terms of money but also relationships. He uses the example of making consistent small investments, whether in money or content creation, that gradually build up over time to generate significant returns, like passive income or long-term wealth.

What does Mike consider the most important aspect of becoming wealthy?

Mike emphasizes the importance of patience in wealth-building. He highlights how impatience can lead to poor financial decisions, such as taking risky bets with money or quitting long-term strategies for short-term gains.

What is Mike's opinion on investing in self-education?

Mike stresses the value of investing in mentorship and self-education. He believes that continuously improving one’s skills, learning from mentors, and investing in personal growth are crucial for long-term success and financial prosperity.

Why does Mike believe focusing on health is essential for wealth-building?

Mike argues that focusing on health is critical because without good health, all the wealth in the world is meaningless. He shares the perspective of many wealthy individuals who would trade their riches for better health, making it clear that maintaining physical and mental well-being is essential for sustained success.