Financial Mistakes I have been Repeating For 21 years, finally — Overcame to Grew My Savings

The difference between the poor and the wealthy is not money, it's financial knowledge — It hits me.

I grew up in a very low-income family and my mindset also revolves around being poor.

I was immature enough to spend money on the things that I shouldn't have. Looking back on my purchases seems like I was a stupid guy. Eating sushi 10 times a month is not a decision I’m proud of.

Here are the 3 things I did to double my savings.

Tracking my cash flow

The first thing I did after, was being broke in a foreign land where I was a tourist, that installed an app called Money Manager.

The problem is, we do spend money without keeping track of it, I bought so many cheap items worth 1 dollar, 3 dollars, etc. that It was equivalent to spending around 500 dollars in around 10 days, way beyond my budget.

Now the difference is after using the Money Manage app, every night I get a notification about, how much I spent, today. I filled it with all the details, where did I spend my money. It's been more than 2 months of tracking and breaking down my expenses. And I figured it out, my expenses of buying fast food on my nerves without having self-control is a problem, it is a major part of my expenses which I’m not proud of.

Since I started tracking it, I’m aware of my situation and I’m not gonna spend more money on the things that I will not be proud of in the future.

Every time, I do purchase something, I ask myself if is it worth it as per my current situation financially.

I wanted to buy a more comfortable chair, but I haven't bought one because it is not the right time financially for me.

Keeping the money

One thing that I learned, coming from a poor background is people do save money but saving money will make you poorer.

That's true.

Keeping liquid cash more than you need, there's no point. It's like you are burning your own money.

The best thing you can do with your money is long-term investments, or crypto, or buy silver and gold (like Robert Kiyosaki says). Here is the catch, The difference between the poor and the wealthy is not money, it’s financial knowledge. If you don’t know about finance and don't want to learn then good luck with that.

The only reason, I find it interesting and motivating to learn about money and investing is because itself money.

The only blessing you can do to yourself is to learn about money.

Labor income vs other income

The one thing that, I will teach my younger self is, that you can never be rich with your labor income (the money you will earn after working for others — ofc there are exceptions but I know I’m not an exception case)

My family and most of the other families in my neighborhood are working class. Their primary ideology about money is Study — Job — Save.

Since then, I have traveled a bit in the world. I know, I don’t want the lifestyle they are projecting.

Passive income streams as other income sources.

Since I have been aware of my situation, I grew a passive income source.

Just in one month, I have saved around $150 without taking any mental strain. It is a big achievement for me, because the place I’m from, people's monthly income is $150. And that's sad.

Summary:

• Cut the expenses which I’m not proud of buying
• Not keeping the money more than I need per month(Put them in stocks and crypto).
• Be aware that your labor income will not make you rich. So it's time to find a side chick.

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