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This post has been updated and republished with new insights on changing your money mindset in your 20s and 30s.
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Smart Money 101: Why You’re Still Broke — 3 Money Mindset Shifts That Changed Everything in My 20s
Three Key Differences Between Those Who Make Money and Those Who Don't.
Let’s be real—if you suddenly got $100,000, what’s the first thing you’d do? Upgrade your car? Plan a dream vacation? Most people would. And that’s exactly why sudden wealth doesn’t last. Making money and keeping money are two completely different things.
The Harsh Truth About Money Management
Ever wonder why 70% of lottery winners go broke within a few years (National Endowment for Financial Education)? Or why 64% of people earning over $100K still live paycheck to paycheck (CNBC)? It’s not because they don’t make enough—it’s because they don’t know how to manage and grow what they have.
Wealthy people think differently. They don’t just focus on making money; they focus on keeping and multiplying it. Here’s how they do it—and how you can too.
1. Do You Spend Money or Make It Work for You?
Most people, when they get paid, immediately think, "What can I buy?" A new phone, a fancy dinner, a designer bag. It feels good in the moment, but if money is just something you spend, you’ll always feel like you don’t have enough.
Wealthy people? They flip the script. Instead of "What can I buy?" they ask, "How can I use this money to make more money?"
Warren Buffett put it best: "Do not save what is left after spending, but spend what is left after saving." In other words, pay yourself first—save and invest before you think about spending.
My Wake-Up Call
When I got my first paycheck, I went all out. Treated my friends to dinner, bought a new watch—felt amazing. Until a month later when I checked my bank account. Zero. That’s when I realized: If I kept spending like this, I’d always be broke.
Now? I make sure I save and invest before anything else. Stocks, real estate, even just setting aside cash—I let my money work for me first.
Try this:
Set up an automatic transfer of 20–30% of your salary into savings or investments before you spend a dime.
Before buying something non-essential, wait 24 hours. If you still really want it, go for it. If not, you just saved money.
If you want to buy something expensive, save the same amount first—double the cost in your account before purchasing.
2. Do You Trade Time for Money or Build a System?
Most of us were raised to believe, "Work hard and you’ll make money." And yes, hard work matters. But here’s the problem—there are only 24 hours in a day. If your income is tied to your time, there’s a limit to how much you can make.
Wealthy people ask a different question: "How can I make money without constantly working?" They build income-generating systems—things that make money for them even when they’re not actively working.
The Power of Passive Income
My Lightbulb Moment
Take two friends. One works overtime to pay rent; the other saves up and buys a small rental property. A few years later, one is still working crazy hours, while the other collects rent checks. Same effort, totally different results.
Robert Kiyosaki said it best: "The rich don’t work for money; they make money work for them."
I used to think the only way to make more money was to work harder. Then I started a blog, invested in stocks, and explored passive income. Over time, I realized I didn’t have to trade time for every dollar I earned.
Try this:
Start a small side hustle—a blog, an online course, or even selling a skill you already have.
Invest in stocks that pay dividends. Even a little at first can grow over time.
Turn a hobby into a money-making venture—graphic design, writing, tutoring, or whatever you’re good at.
3. Do You Spend Money or Invest It?
How often have you said, "It’s just a little treat!"? I get it. But small, frequent purchases add up, and before you know it, your money is gone.
Wealthy people ask a different question: "Will this expense help me make more money?" Instead of spending on things that lose value, they put their money into things that build wealth.
Smart Money Moves
My Rule
Self-Education: Business Insider reports that self-made millionaires read at least two books a month. Learning pays off.
Investing: Stocks, real estate, and even small businesses aren’t just for the rich. Even small investments add up over time.
Skills & Side Hustles: Instead of splurging on luxuries, invest in learning a new skill that can boost your income.
Before buying anything, I ask myself: "Is this making me richer or poorer?" If it’s just short-term pleasure, I rethink it. If it helps me grow financially, I go for it.
Try this:
Before making a purchase, wait a week. If you still want it, then decide.
Set up a monthly investment plan, even if it’s just $50 a month.
Spend on things that create future value—education, tools for a side business, or networking opportunities.
Ready to Change Your Money Mindset?
You don’t need a six-figure salary to build wealth. You just need to start thinking differently about money.
See money as an asset, not just something to spend.
Stop trading time for money—build income systems.
Invest in things that grow wealth, not just things that feel good in the moment.
Small changes today can lead to massive results over time. Start now—your future self will thank you.
What’s one money habit you’re working on changing? Drop a comment and let’s talk about it!
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