By Johnny Tyga 
Things to Avoid if You Want to Be Rich: A Blueprint for Financial Success
We all dream of becoming rich—living a life free from financial stress, surrounded by the luxuries we’ve always wanted, and achieving the ultimate freedom to do what we love. However, the path to wealth is not as simple as just earning a high income. It’s about making strategic decisions, learning from your mistakes, and avoiding key financial pitfalls that can prevent you from reaching your goals.
In this guide, we’ll explore the top eight things to avoid if you want to be rich, and how avoiding these common traps can help set you on the right path to financial success.
1. Avoid Living Beyond Your Means
One of the most fundamental principles of becoming wealthy is living within—or even below—your means. It might sound simple, but many people fall into the trap of spending more than they earn. They buy things they can’t afford, take on unnecessary debt, and often ignore the consequences of their financial decisions.
Why It’s Harmful:
Living beyond your means means that you’re constantly spending more money than you’re bringing in. It results in accumulating debt, such as credit card bills, personal loans, and even payday loans, which comes with high interest rates. With debt weighing you down, it becomes more difficult to save, invest, or build wealth over time.
How to Avoid It:
- Create a budget: Track your income and expenses to ensure you’re not spending more than you earn.
- Avoid debt: Only take on debt when it’s absolutely necessary (such as a mortgage or student loan), and always aim to pay it off as quickly as possible.
- Live below your means: It’s easy to get caught up in the idea of “keeping up with the Joneses.” But living frugally now can set you up for long-term success and help you accumulate wealth faster.
2. Avoid Procrastination
Procrastination is one of the most significant roadblocks to success, especially when it comes to building wealth. It’s easy to think that you’ll start saving tomorrow or invest when you have more money. However, every day that you wait is a day you could be growing your wealth.
Why It’s Harmful:
Procrastination delays your financial goals and reduces the time you have to accumulate wealth. The earlier you start saving and investing, the more you can benefit from compound interest, which can dramatically increase your wealth over time.
How to Avoid It:
- Start now: The best time to begin your wealth-building journey is today. Whether it’s setting aside 5% of your income for savings or opening an investment account, the sooner you take action, the better.
- Set clear goals: Define what you want to achieve and create a detailed plan to help you reach those objectives. Break down large goals into smaller, manageable steps so you’re more likely to follow through.
- Create a routine: Financial habits, such as saving or investing regularly, can help you make progress without thinking twice. Set up automatic transfers to your savings or investment accounts to avoid procrastination.
3. Avoid Relying on a Single Income Stream
In the modern world, relying on just one source of income—such as a salaried job—can be risky. While it might provide financial stability in the short term, it leaves you vulnerable to unexpected job loss or economic downturns. The richest people in the world often have multiple income streams that protect them and give them room to grow their wealth.
Why It’s Harmful:
Relying solely on one income stream can create a false sense of security. If that income is cut off, you may struggle to pay bills or cover expenses. Furthermore, not diversifying your income limits your potential to earn more money, especially in the long term.
How to Avoid It:
- Create multiple income streams: Start side businesses, invest in stocks or real estate, or look into freelance opportunities. Passive income, such as earning royalties from books or investing in dividend-paying stocks, can also provide you with a steady cash flow.
- Invest in assets:** Real estate, stocks, bonds, and other investments can generate income that doesn’t require your active participation. These assets can appreciate over time, contributing to your overall wealth.
- Learn new skills: Expanding your knowledge and diversifying your skillset can open new doors to opportunities for additional income.
4. Avoid Spending Money on Things That Depreciate Quickly
Not all purchases are created equal. Some things—like clothes, gadgets, or cars—lose value the moment you buy them. Spending money on things that depreciate quickly can keep you from building wealth, as it takes away money that could be used for investments or savings.
Why It’s Harmful:
When you buy items that quickly lose their value, you’re essentially throwing money away. Rather than accumulating assets that could grow in value, you’re spending on things that offer no long-term return. This keeps you stuck in a cycle of consumerism without building any lasting wealth.
How to Avoid It:
- Prioritize purchases: Before making a purchase, ask yourself if it’s necessary and if it will provide lasting value. Will it help you create wealth or just offer short-term pleasure?
- Invest in assets: Focus on spending money on things that can appreciate over time, such as stocks, real estate, or even personal development (courses, books, etc.).
- Avoid lifestyle inflation: As your income grows, it’s easy to increase your spending. Resist the temptation to upgrade your lifestyle every time you get a raise, and instead, save or invest that extra income.
5. Avoid Negative Influences and Toxic Relationships
Your social circle plays a critical role in shaping your financial habits. If you surround yourself with people who have a limited mindset or who consistently engage in poor financial behaviors, it can be difficult to change your own financial habits.
Why It’s Harmful:
Negative influences can hold you back from taking calculated risks, reaching your full potential, and maintaining the discipline required to accumulate wealth. Toxic relationships, whether with family members, friends, or colleagues, can distract you from your goals and even encourage poor financial decisions.
How to Avoid It:
- Surround yourself with positive influences: Build relationships with people who inspire you, whether they are successful entrepreneurs, mentors, or individuals who share your financial goals.
- Seek out a mentor: A mentor can provide valuable insights, share their experiences, and guide you toward making better financial decisions.
- Set boundaries: Don’t let negative people pull you off course. Set clear boundaries with people who undermine your progress or encourage bad financial habits.
6. Avoid Fear of Taking Calculated Risks
The fear of failure is one of the biggest obstacles to building wealth. Many people never take the leap to start their own business or invest in stocks because they’re afraid of losing money or failing. While taking risks is inevitable on the road to success, it’s important to take calculated risks that have the potential for high rewards.
Why It’s Harmful:
Without taking risks, you limit your potential for growth. Staying in your comfort zone may feel safe, but it won’t lead to significant financial success. By avoiding risks, you’re also avoiding opportunities to grow your wealth.
How to Avoid It:
- Educate yourself: The more you understand about investments, entrepreneurship, and wealth-building, the more confident you’ll feel in taking calculated risks.
- Start small: You don’t have to take huge risks from the beginning. Start with small investments or business ventures and gradually scale as you gain experience and confidence.
- Embrace failure as a learning experience: If you fail, learn from the mistakes and use that knowledge to make better decisions in the future.
7. Avoid Ignoring Your Health
Wealth is not just about money; it’s about the ability to enjoy life and its experiences. Your health is a crucial asset in your wealth-building journey. Without good physical and mental health, you may find it difficult to work hard, make smart financial decisions, or enjoy the fruits of your labor once you do achieve financial success.
Why It’s Harmful:
Poor health can lead to medical expenses, lost work time, and a reduced quality of life, all of which can affect your ability to accumulate wealth. In extreme cases, chronic health issues can limit your earning potential, prevent you from working, and drain your resources.
How to Avoid It:
- Prioritize your health: Maintain a balanced diet, exercise regularly, and manage stress effectively.
- Invest in preventative care: Regular check-ups and taking care of your body early on can prevent costly medical bills in the future.
- Focus on mental health: Mental well-being is just as important as physical health. Practice mindfulness, meditation, or other stress-relieving activities to keep your mind sharp and focused.
8. Avoid Short-Term Thinking
Many people who strive for wealth often focus on immediate gains and quick fixes rather than thinking long-term. Building substantial wealth takes time, patience, and discipline. If you’re constantly looking for shortcuts or trying to get rich overnight, you’re likely setting yourself up for disappointment.
Why It’s Harmful:
Short-term thinking can lead to poor decisions, such as taking high-risk investments or spending money on get-rich-quick schemes. These methods rarely lead to long-term success and can even cause you to lose money.
How to Avoid It:
- Set long-term goals: Think about where you want to be financially in 5, 10, or 20 years, and make decisions that align with those goals.
- Be patient: Building wealth is a marathon, not a sprint. Understand that it will take time, but if you stay committed to your goals, you’ll see progress over time.
- Make disciplined decisions: Focus on making sound, long-term decisions that will contribute to your financial growth and well-being.
Conclusion: The Key to Becoming Rich is in Your Choices
Becoming rich isn’t just about earning more money—it’s about making better choices and avoiding the common mistakes that can derail your financial success. By living below your means, avoiding procrastination, diversifying your income, and taking smart risks, you can create a solid foundation for wealth-building.
Avoiding these eight key pitfalls can set you on a path toward long-term financial success. So, take action today, be patient, and stay committed to your goals. Wealth is built over time, and with the right mindset, you’ll be well on your way to financial freedom.