Poor to Rich

How to go from poor to rich in a year - 3

How do you stop habits that keep you financially poor

Poverty is not the absence of wealth. Sure, if you are wealthy, you are not poor. But there are plenty of people that have no wealth at all and are not poor. They have adequate income and often get themselves into debt. For that set of people
, Faisal Khan gave some excellent advice here.

If you're actually poor, the hardest problem to solve is just increasing your income. (And you'll also have to deal with all the problems of reducing expenses, including the cost of debt, that people with more income do, but with less ability to invest in things to save you time or money like reliable transportation.) If you're poor, "pay yourself first" sounds like a bad joke.

Either way, though, you can't go wrong with (more or less) being a miser. Some people are just allergic to spending money. They tend to do well at accumulating, even at low levels of income. If you need some tricks to help you get in the habit of being miserly, some are listed in other replies.

If your goal is to get money in order to spend money, though, the evidence is that the runway is a lot longer for you. You might have to get above $300k/year before you start saving, if you really like to spend money. Maybe more. Hence all the advice about learning not to like spending money.

If you also learn to like investing money, you can get quite wealthy. This is where a lot of misers mess up. They confuse being skittish about money with frugality. Picture the person who clips coupons and has it all stashed away in a savings account - poor use of time, poor use of assets, but safe except for the occasional papercut. If you are both dislike spending money on consumer products and practice the habit of investing money in ways that allow you to increase your income, you are well on your way.













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