We all dream of financial stability, luxurious trips, fancy cars, and elegant dinners. Why do some of us have it, and others can’t get a hold of it? Several financial mistakes are keeping you from being rich, and here is the key to solving them!

Spending Before Being Paid

Owing yourself money is such a ridiculous phrase that it somehow starts to make sense. How many times have you decided on a big purchase by saying, “I’ll get the paycheck soon anyway.”? However, when you get the paycheck, you still have to pay for utility bills and groceries. Avoid making big financial decisions at the end of the month, right before your paycheck. Let the thought cool off for a week or two. When you get the cash, you will know whether that purchase was important if you like the rush of excitement from impulsive decisions, no problem with that! Have a backup plan for that and put some money away from each paycheck for these same cases. This way, you got yourself a win-win; you enjoy the spontaneous purchase, but you don’t owe yourself money.

Spending Too Much

Every “I have clothes, but I have nothing to wear” situation relates to this. That neon green shirt you bought on sale, the small souvenir from your last trip, and the bookshelf full of planners, all of these keep you from being rich. Even though $20 may not poor you, spending it on unnecessary stuff every week probably will. The solution for that is to prioritize your money for every paycheck. Go with rent and utility bills first. Follow up with groceries and health-related spending. Keep some space for saving extra money. Top it all up with entertainment funds. This plan is only general, and you should adjust it every month. Around Holidays, you can also prioritize trips back home and gifts for the loved ones. If you will need new shoes this season, put that spending higher on the list. Have a clear plan, and you will never spend an extra, unnecessary dollar.

Not Spending Enough

It is obvious that overspending ruins your budget. How about not spending enough? And we are not talking about investing in property or another big-sum spending. Let’s talk about real life! An average American spends at least $2,000 on Starbucks coffee annually. You can get a coffee pot for less than $10, and if you want to feel fancy, invest in a coffee machine, which you can get for less than $50. The same math goes for clothes and shoes; rather than buying a cheap winter coat on sales every year, invest in a more expensive one that will last you for at least three seasons. It is applicable for car expenses, too, like new tires, oil changes, etc. Electronics, home stationery, furniture, you name it! If you invest in things you will use for a long time, you will spend way less overall.


The deadly sin of financial troubles – panicking and making rash decisions. It is common for things to go a different path now and then, but you should prepare yourself and know your choices beforehand. If you have an emergency expense, don’t be afraid to take a substantial amount from your savings account to put an end to your crisis. “What if I don’t have any savings?” With a little research, you may find out that the lending market has novelty products for this exact scenario. If you take payday loans as an example, they offer same-day or next business day cash, which you have to return on your next paycheck. The process is online and available for people with all ranges of credit scores. If you don’t want to take loans, you may borrow from family, sell your stuff, get an extra job, and many more options. All you have to do is get a clear view of your situation and don’t rush with any decisions that will eventually ruin your budget.

Having no Backup Plan

Finally, an important thing that keeps you from being rich is not having an option for a rainy day. Especially in this period, it is mandatory to have a plan to rely on if everything goes south. The job market is never stable enough for you to rely on a single paycheck. Have a savings account, the possibility to borrow, a valuable good you could easily sell, or anything else that will give an alternative source of income at least for a while.

Getting rich is not a step; it’s a process, and it is your responsibility to make the minimum amount of mistakes throughout it!