2 Habits that Made me Lose Everything and Kept me Broke

Summary

In this video, the speaker shares personal experiences with financial discipline, emphasizing the importance of mindful spending over consumerism. Reflecting on past times of earning large amounts of money, they highlight how society often pressures individuals to flaunt wealth with luxury goods. The speaker advises against splurging on things like designer clothes and cars, focusing instead on being frugal and making purchases only when necessary. They discuss how their conservative spending has led to financial stability, even during tough times, and how they avoid unnecessary debt by living within their means and prioritizing investments that support their work.

Takeaways

• 😀 Avoid the urge to impress others by purchasing luxury items or flashy possessions just for the sake of appearances.
• 😀 Focus on minimalism and only buy what you truly need, rather than indulging in unnecessary purchases.
• 😀 Real success is not defined by the material goods you own, but by your ability to live comfortably within your means.
• 😀 It's more important to maintain financial responsibility than to keep up with trends or societal expectations of wealth.
• 😀 Many high-end brands are overpriced and only carry value because of their logo; the actual quality often doesn't justify the price.
• 😀 Don’t feel pressured to buy expensive luxury items like designer jeans or watches if they don’t align with your values or financial goals.
• 😀 Even if you make significant income, like $15,000 to $155,000 per month, it’s possible to avoid overspending and still live comfortably.
• 😀 It's okay to choose cheaper alternatives to luxury items if they serve the same purpose, as long as you like them and they meet your needs.
• 😀 Financial discipline is key to long-term success, and it’s more rewarding to save money and avoid unnecessary debt.
• 😀 Making conscious, practical choices with your money (like buying a used car with cash) can lead to greater financial stability and peace of mind.
• 😀 Don’t be afraid to share your experiences and educate others on how they can avoid the trap of overspending and instead prioritize financial health.

Q & A

What lesson does the speaker teach about spending money on luxury items?

The speaker highlights that spending money on luxury items, like designer clothes or jewelry, is often about impressing others rather than fulfilling a genuine need. They emphasize living below your means and making purchases based on practicality and necessity, not societal pressures.

Why does the speaker prefer a minimalist lifestyle, even with significant income?

The speaker prefers a minimalist lifestyle because they believe it reduces stress and unnecessary distractions. They prioritize only what they need—such as computers for work and basic furniture—while avoiding excess purchases that don't serve a functional purpose.

What is the speaker's perspective on high-end fashion brands like Balenciaga?

The speaker is skeptical of high-end fashion brands, viewing them as overpriced for the minimal difference in quality. They suggest that the real value of these items comes from the brand name, not the actual material or craftsmanship, and they choose not to spend money on them.

How does the speaker view the idea of buying a new car after making more money?

The speaker rejects the idea of buying a new car simply because they are earning more money. They believe that purchasing a new car would only add to their monthly expenses and that a used car, paid for outright, is a more financially sound decision.

How does the speaker handle the pressure to show off wealth in their community?

The speaker chooses not to engage in showing off wealth to others. They believe that many people in their community buy expensive items to fit in or gain validation, but they opt for a humble approach to finances, focusing on practicality rather than status symbols.

What does the speaker mean when they say 'money isn’t everything'?

When the speaker says 'money isn’t everything,' they mean that while financial stability is important, it is not the ultimate source of happiness. They value mental peace and creativity over material possessions and believe that personal fulfillment comes from wise decisions and self-awareness.

Why does the speaker prefer living in an apartment instead of staying with family, despite financial concerns?

The speaker values having their own space to foster creativity and focus on their content creation. They mention that living with their parents would have hindered their ability to be productive and express themselves fully, which is why they chose to move into an apartment even though it was a financial liability.

What is the speaker's approach to buying expensive jewelry, like diamonds?

The speaker takes a practical approach to buying jewelry. They share that they purchased a custom chain and a Cartier bracelet but chose not to buy overpriced diamonds. They prefer Moissanite, which offers similar visual appeal at a fraction of the price, rejecting the need for luxury brands for the sake of status.

How does the speaker handle unexpected financial challenges?

The speaker shows resilience by saving money during high-earning months, which allowed them to weather periods of financial uncertainty. This financial cushion helped them maintain stability, even when their income decreased or they faced unexpected life changes.

What advice does the speaker offer to others about managing money and lifestyle choices?

The speaker advises others to avoid unnecessary spending on luxury items and focus on making smart, practical purchases that support long-term stability. They recommend saving money, living below your means, and not succumbing to societal pressures to show off wealth, as true success lies in financial independence and personal well-being.