Subtitles section Play video Print subtitles If there is one thing that we all have in common is probably the lack of money. No matter how much money you make, you always feel like you wanna make more. Every time you reach a certain milestone, somehow your expenses increase and you feel like you are not making enough. There are many reasons why some of us struggle financially and others don't. But one of them is definitely how we spend our money. In fact, a lot of people have certain spending habits that actually keep them poor even if they have 6 figure income. And to be honest, I have had some of these habits myself some time ago and when I got rid of them, financially my life has improved drastically. I have been able to manage my finances better and save a lot of money. One of the main reasons why a lot of people are actually poor is because they spend a fortune to get other people's approval. They are in constant need of validation. Their self-esteem is directly affected by what people think of them. When you are so dependent on other peoples' opinions, you end up buying things that you don't need to impress people that don't even care about you. Take a moment and think about the things that you have bought because you wanted to impress people, I am sure you can write down a long list. Especially, if your friends, for example, move to a bigger house or get a better car, you immediately feel like you are falling behind And you should step up your game as well, otherwise people are going to look down on you. And now ask yourself, how much you would have saved if you didn't buy all that crap? Since we are emotional creatures, we crave for recognition and one of the easiest ways to do that is to buy whatever people find impressive. If you are giving up to your insecurities, you will keep wasting money. They will keep dragging you back. Remember, if you are not emotionally healthy, you are never going to able to get financially free. Your insecurities will keep pushing you to waste money that you could have saved to invest! If someone is going to hand you a million dollar, you can blow it up in a single day and get back to where you were yesterday. Earning money is really difficult but spending it is the easiest thing in the world! Part of the reason why some people are rich is because they prevent themselves from spending that money quickly and irresponsibly, which is what separates them from the poor. The problem with us is that we have few needs and yet unlimited wants. And the moment we lose our discipline and give up to our desires, we waste all the money that we worked so hard to earn. Some people are going to say, what's the point of having so much money if you aren't going to spend it to have fun? The problem is that your wants will never end, you will always want more. You will always want another girl, no matter how many girls you hung out with. So the wisest thing to do here is learn to have fun with the least amount of money. A meaningful conversation over a cup of coffee with close friends is much more fulfilling than wasting a fortune to party the entire night. The point isnt to become a monk and get rid of everything you have but rather discipline yourself. Draw a clear line between your needs and wants! And remember the goal isn't to look rich but to be one!