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4 Bad Money Habits That Have Left Millionaires Broke

The fundamental mistake newly-rich people often make is to think they have so much money they can’t blow it all.

John Rampton




Millionaires are known for having habits like carefully planning and spending their money wisely, constantly educating themselves, waking-up early, and especially for taking care of their health.

But, we have all seen the millionaires who don’t have those self-control habits. Those millionaires who connect-up with a spouse or partner who hasn’t had money before and doesn’t know that money has to be taken care of.

The millionaires who just plain do the opposite of what it takes to make and keep money – and they have bad habits that ultimately leave them broke.

Related: 6 Skills Of Self-Made Millionaires That You Should Be Using, Too

Here are four of those most common habits of millionaires who have gone broke:

1They didn’t track their spending


Whether you’re a freelance writer or Bill Gates, everyone needs a budget. When looking at your money, you should be tracking every penny you spend. Set a budget and know where every penny goes.

I personally recommend watching the little costs that we normally don’t pay attention to.

The R100/month accounts add up over time. The more of them you have, the more money will be going out of your account each month.

While this is a habit that most millionaires follow, millionaires in the process of going broke are not watching and following their money – they do the opposite. They cannot even tell you where it went. These soon-not-to-be millionaires don’t even go-over their bank statements or monthly bills to make sure that there aren’t any unauthorised transactions.

They also don’t look at bills from restaurants, hotels or retail purchases, much less the grocery store, to make sure that they weren’t overcharged. They also don’t compare prices for items they routinely purchase, such as their cell phone bill.

In the end, these millionaires waste a lot of money simply because they don’t track their spending. It may not seem like much of a problem in the beginning, but it can quickly add-up. In the end – well – no money is a problem.

Related: 15 Wise Money Quotes From Millionaires And Billionaires

2They made pricey and emotional purchases

Millionaires who are going broke have a nasty habit of making emotional purchases. For example, when they’ve had a bad day at work they may go on a Amazon spending spree, or they may determine a couple of times a week that they have to have DoorDash because they are depressed about something and don’t want to cook.

Most millionaires are frugal and known to be careful with their spending. They avoid making emotional purchases because millionaire emotional purchases tend to be a bit more spendy than Amazon. These are often the expensive “sink the boat” type purchases.

Remember M.C. Hammer and his gold-plated driveway gates emblazoned with the phrase “Hammer Time” and his 21 racehorses? He would have done better to sit on the couch with a quart of Häagen-Dazs Ice Cream and zone out to an old movie.

One interesting thing about the millionaires who stay rich is that many use coupons, look for the best bargains, and cause a scene if they’re overcharged. Then, they’ll turnaround and go on a luxurious European vacation or purchase an item like a massive diamond ring. One of my best friends is a multi-billionaire. Last week I was over at his house and heard him on the phone arguing with a company over a R400 charge.

Be frugal no matter what stage of life you’re living.

Related: (Slideshow) Best Advice From Self-Made Millionaires

3They didn’t have multiple streams of income

Eike Batista,

Eike Batista,

Author Thomas C. Corley’s five-year study of self-made millionaires discovered that a majority of them have multiple streams of income. In fact, 65 percent of the millionaires he studied had three streams of income, while 35 percent had four streams.

However, not all millionaires follow this multiple stream rule. Take the case of Eike Batista, a Brazilian businessman who was worth an estimated $35 billion. Batista truly believed that nothing could hurt or even slow down his oil and gas business, OGX. This company was his crown jewel. But when oil production slowed he was forced into bankruptcy.

“Having multiple income streams makes a lot of sense,” says Corley. “When one stream is negatively affected by systematic economic downturns, of which you have no control, the other streams can come to the rescue and help you survive the downturn, without seeing your lifestyle dramatically affected.” This also means that you follow the rule of, “not putting all of your eggs in one basket.”

Related: 15 Ways Millionaires Manage Their Money That Make Them Richer

4They were Impatient, aggressive investors

Unlike long-term investors who are patient and remain calm, aggressive investors use “The Wolf of Wall Street” as their playbook. They pick stocks on a hunch and then unload their investments panically when things start heading south.

Even worse, because they were successful making millions, they believe that don’t need the advice of educated investors and rely on their own street smarts or delusions of grander.

The bottom line is, educate yourself about your money.

Protect your money, watch your money, take care of your money so that you, too, won’t be a broke millionaire.

This article was originally posted here on

John Rampton is an entrepreneur, investor, online marketing guru and startup enthusiast. He is founder of the online invoicing company Due. John is best known as an entrepreneur and connector. He was recently named #2 on Top 50 Online Influencers in the World by Entrepreneur Magazine and has been one of the Top 10 Most Influential PPC Experts in the World for the past three years. He currently advises several companies in the San Francisco Bay area.


Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands



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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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Personal Finance

If You Think These 5 Things, You’ll Never Get Rich By The Time You’re 30

Five common mistakes entrepreneurs make when starting a business and how to correct them.



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Last week, I had lunch with a millennial who wanted some advice about a business he’s starting. After the usual small talk, we got down to discussing his business plan. Within a short time, it was clear that his business idea was great, his plan for executing was fairly solid and he had gathered together a strong team to help him make it happen.

So far, so good. But, to be frank, this guy has no chance of being successful with his current mentality. What it takes to be rich (or successful in any measure) has a lot more to do with your mindset than your ideas and plans.

From the time we started in business at the ripe ages of six and seven, our Grandpa Joe taught my brother Matthew and me many lessons about the details of running a profitable business. Over the years, we learned about how to create a business plan; how to market our products and services; and how to take care of customers, vendors and employees. All this knowledge has been invaluable to us in creating and running successful businesses. But, what our grandfather taught us about attitude and mindset trumps all other lessons.

Without calling out the specific individual I spoke with recently, below are five “hypothetical” attitudes that will get you nowhere in your journey to success – and the attitudes that should replace them.

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Personal Finance

5 Habits That Lead To Millionaire Business Success

You need the right habits if you’re going to succeed.

Timothy Sykes




What do all millionaire businesspeople have in common? Well, a lot of things.

I found from a recent study that 80 percent of all millionaires still go to work every single day. They’re working people just like me. But, they have to keep themselves in work or it all grinds to a halt. So what are the habits you need to make your business a success?

1. Patience

Nothing is ever going to come easy. You can look at the likes of Steve Jobs and Bill Gates, as well as the other usual suspects, to realize that success didn’t come with their first venture. Many of them failed time and time again. It took patience for them to become successful.

I read an article recently about 36-year-old teacher Andrew Hallam who became a self-made millionaire on a teaching salary. But, in his spare time he invested smart and lived frugally.

It proves you don’t have to inherit lots of money or become an instant success to make a millionaire business.

Related: 4 Ways To Become A Millionaire Even When You Start With Little

2. Dedication

You have to be dedicated to your craft if you’re going to become successful. Going back to Bill Gates again, he started his business in the back of his garage. Now that’s dedication.

It’s what I tell all my students. If they’re not dedicated to this, then they should leave. You need to be able to push through the barren periods if you’re going to reach the oasis of success.

3. Ambition and big dreams

Have you ever heard the quote, “Shoot for the moon. Even if you miss you’ll land among the stars”?

I take that to heart because even if you aim to become a billionaire and miss you still might be a millionaire many times over. Take the Wright Brothers as an example. Not content with creating a successful glider in 1902 they went on to create the world’s first airplane in 1903, making four brief flights in Kitty Hawk. It demonstrates the importance of dreaming big because you never know what you might achieve.

Related: 12 Millionaire Habits To Start Making Serious Money Soon And Build Wealth In A Hurry

4. Learn from mistakes

Every good businessperson will mess something up. It’s inevitable. What’s important is how you learn from your mistakes over time. Do you adapt after making your mistakes?

Millionaire businesspeople always set some time aside to reflect. Then they create a plan of action for ensuring that it doesn’t happen again. Most failed businesspeople put it down to “bad luck.”

5. Focus on niches

This important! Try to take over a whole industry at once and you’ll inevitably get swallowed up by the competition. Start small and control your own niche before moving into another niche. When you master your small area, you can push on and expand.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

You’ll be amazed at how much easier it is to expand after you master your own niche/audience first.

Do you have what it takes? That’s the question I always ask novice businesspeople. You need a plan and you need the right habits if you’re going to succeed.

This article was originally posted here on

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