This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Learn what not to do so you can elevate your financial outcomes
If you want to stop being broke and finally build wealth, one thing you should avoid (unless it’s creating more wealth) is debt.
Personal loans, credit cards, student loans (yes, these), car notes, and any unnecessary debt.
Debt decreases your net worth. To increase your net worth, stop adding debt to your financial situation.
2. You Live Above Your Means
If you spend more than you earn, what happens? You end up in the negative. Living below your means is one of the simplest money hacks to build wealth, but most people don’t do this because it requires financial discipline.
Living above your means is easy when society makes it accessible to finance your life.
Billions are spent on advertising to help ensure you spend your money buying x products, but to what end?
Apple releases a new iPhone every year, but most people don’t buy it outright because they can’t afford it. They’re reliant on installment plans or their credit cards, or they wouldn’t be in line.
The upgrade lifestyle is addicting. What’s new? What’s in? What’s out? FOMO is a big deal, but to what end?
3. You Think Like A Broke Person
You will attract broke circumstances into your life if you think and feel broke thoughts. What you think about, you bring about. If you want to attract more wealth into your life, think and focus on wealth. If you want to attract more abundance in your life, believe there is more than enough for everyone.
Spend your time around people who challenge you to think bigger and conduct their lives with an abundance mindset.
Reprogram your mind and thoughts with prosperity affirmations.
Think bigger. Stop limiting your financial outcomes with small thinking.
4. You Focus On Spending Versus Investing
Which one builds wealth: Spending or Investing?
Investing. Why? Compound interest. As you invest, you will accumulate more wealth due to the law of compound interest. If you’re always spending your financial resources, you will likely spend resources you could leverage to build assets.
Most people purchase liabilities. Few people purchase assets.
Assets make you money. Liabilities decrease your money.
Liabilities don’t increase in value, yet many people with limited mindsets focus on buying what they want now instead of investing their dollars in assets that will create more freedom, wealth, and financial independence.
Buying assets isn’t sexy. Buying what looks good is sexy. If you can get past what feels good and is sexy in the short term and prioritize the long-term vision, you will eradicate a broken financial situation.
5. You Don’t Invest In Your Financial Education
Around 4% of Americans read personal finance books. Bummmmmmmmmer! If you’re not financially educating and bettering yourself, how can you expect to improve and elevate your financial situation? You can’t!
Financial education is a sure way to transform your financial outcomes, but you must be willing to work, invest time, study, and learn.
The only way I improved my situation was through financial education; it works.
4% of Americans Read Personal Finance Books
6. You Prioritize Materialism Over Building Wealth
Like #4, you will likely never build wealth if you prioritize accumulating things over building wealth. It’s easy to get sucked into the train of buying more things – everyone else seems to be doing it. Everyone else seems to have a house full of stuff. Everyone else seems to have extra storage, a garage, or a shed full of stuff they never use.
New products come out all the time, and there is a never-ending opportunity to buy cool new stuff, but to what end?
7. You Don’t Know How Much Is Coming In And Out
If you want to get your financial sh*t together, always have a clear idea of what money is coming in and what money is going out.
Keep track of all your accounts and income. And never leave your money entirely in the hands of anyone outside you. Always actively participate in your money – even if you’re working with “experts.”
Your money and wealth are your responsibility. Many people lose money and wealth-building opportunities because they allow others to handle their money for them instead of being active participants.
8. You Maintain One Income Source
Diversify your income. Never rely on one source of income. Set yourself up for financial success by keeping your options WIDE open. Two incomes are better than one. Three income sources are better than two. And keep going. You don’t have to be traditional and maintain one or two income sources. Keep wealth constantly flowing your way.
You can’t be broke when you have multiple income sources, and you manage your money prudently.
The truth you don’t want to hearmedium.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.