9 Money Habits Keeping You Poor: A Review of Adam Rose’s Journey to Financial Freedom
Have you ever wondered why some people seem to thrive financially while others struggle? In “9 Money Habits Keeping You Poor: My Story to Financial Freedom”, Adam Rose uncovers the financial habits that keep so many people trapped in poverty and debt. This book offers a clear roadmap to financial freedom, filled with relatable stories, practical advice, and the encouragement to make small but impactful changes.
Adam Rose doesn’t just preach financial wisdom—he’s lived it. Having once been burdened by debt and struggling to make ends meet, Rose shares his personal journey of overcoming these challenges. He details nine specific habits that keep people poor, providing real-life examples of businesses and individuals who either embraced change and found success or stuck to bad habits and faced failure.
Let’s dive into the key habits Adam Rose highlights in his book and explore how each can either hold you back or propel you forward on your financial journey.
Habit 1: Having a Poverty Mindset
According to Rose, the number one reason people stay poor is their mindset. A poverty mindset means thinking there’s never enough, feeling like you don’t deserve more, or believing you’re stuck in your financial situation. It’s the attitude that says, “I can’t afford this,” rather than, “How can I afford this?”
Rose recounts the story of his own family, who always viewed money as something scarce and believed that hard work alone would lead to success. However, no matter how hard they worked, they remained financially stuck because they never changed their thinking about money. The mindset of limitation kept them from seeing opportunities that were right in front of them.
One of Rose’s favorite quotes is: “If you think you can or think you can’t, you’re right.” He emphasizes that changing your mindset is the first step toward financial freedom. Successful entrepreneurs like Elon Musk and Sara Blakely (the founder of Spanx) didn’t start with all the answers, but they had the belief that they could find solutions.
Habit 2: Not Investing in Financial Education
Rose argues that many people don’t prioritize learning about money because it seems boring or intimidating. However, not investing in financial education is a major mistake that keeps people poor. Rose himself admits that for years, he knew very little about managing money, and this ignorance kept him in debt.
“I didn’t understand the basics of investing, taxes, or even how to read a bank statement properly,” Rose confesses. Like many, he left financial matters to experts without taking the time to understand his own finances. It wasn’t until he began reading books and attending workshops that things started to change.
Financial literacy is key. Rose suggests starting with simple books like “Rich Dad, Poor Dad” by Robert Kiyosaki or taking free online courses that explain basic money principles. Even a small investment of time into learning can yield big rewards. Businesses that invest in financial training for their employees often see reduced turnover and improved productivity, a clear sign that education pays off.
Habit 3: Thoughtless Spending
We’ve all done it—spent money without thinking. Whether it’s buying a daily coffee or splurging on a night out, thoughtless spending is one of the biggest money traps. Rose talks about his own tendency to make small, frequent purchases that added up over time.
“I used to think, ‘It’s just $5,’” he recalls. “But $5 here, $10 there… it adds up to hundreds of dollars every month.” This kind of unintentional spending left him with little money at the end of the month and no real savings.
Rose suggests keeping track of every single purchase for a month. You’ll be surprised at how much money you’re wasting on things you don’t really need. Small changes, like making coffee at home or eating out less frequently, can make a big difference over time.
Habit 4: Not Tracking Your Finances
In his early years, Rose admits he had no idea where his money was going. This is a common problem: not tracking your finances. Without a clear understanding of your income and expenses, it’s impossible to make informed financial decisions.
Rose recommends creating a simple budget. “When I first did this, I was shocked at how much I was spending on unnecessary things,” he says. A budget helps you see where your money is going and allows you to allocate funds to more important goals, like saving and investing.
Rose uses the example of a small business that was losing money each month. The owner had no clue why—until they started tracking every expense. They found that they were overspending on office supplies and unnecessary travel. Once these issues were fixed, the business turned a profit within six months.
Habit 5: Paying Yourself Last
“Most people pay their bills, buy what they need, and then, if there’s anything left, they save it,” Rose explains. This is the habit of paying yourself last. Unfortunately, it often means there’s nothing left to save.
Rose recommends flipping this habit on its head. Pay yourself first. Set aside a portion of your income for savings or investments as soon as you get paid. This ensures that you’re prioritizing your future over short-term needs. He cites the example of businesses that prioritize reinvesting profits for long-term growth, rather than focusing solely on immediate expenses.
Habit 6: Not Building a Buffer
Emergencies happen. Whether it’s a car breakdown, a job loss, or a medical emergency, life is full of unexpected expenses. Unfortunately, many people don’t prepare for them by building a financial buffer.
Rose emphasizes the importance of having an emergency fund. He shares the story of a family who, without any savings, had to go into debt to cover medical expenses. This debt became a burden that took years to repay.
Start small. Even saving $10 or $20 a week can grow into a substantial buffer over time. Rose also discusses different types of debt—like credit card debt and personal loans—and the various strategies for repaying them, such as the snowball and avalanche methods.
Habit 7: Only Having a Single Income Stream
In today’s world, relying on one source of income is risky. Only having a single income stream limits your ability to build wealth and leaves you vulnerable if that income disappears. Rose shares his own story of working a 9-to-5 job and thinking that was enough—until he was laid off.
Diversifying income streams is essential. Rose suggests looking into passive income options like dividend-paying stocks, rental properties, or side businesses. He cites the example of Airbnb, which turned spare rooms into a multi-billion-dollar business, providing homeowners with an extra stream of income.
Habit 8: Being Clueless About Taxes
Taxes are a fact of life, but many people are clueless about taxes and end up paying more than they need to. Rose admits that for years, he didn’t understand tax deductions, credits, or even how to file taxes correctly.
Learning the basics of taxes can save you thousands of dollars over a lifetime. Rose explains the difference between income tax, capital gains tax, and property tax, and how strategies like contributing to a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) can reduce your tax burden.
Habit 9: Waiting Too Long to Invest
One of the biggest mistakes people make is waiting too long to invest. Rose regrets not starting sooner. “I thought I needed a lot of money to invest,” he says, “but the truth is, even small amounts can grow significantly over time.”
The key is starting early and being consistent. Rose shares the story of a colleague who started investing $100 a month at age 25. By the time they were 50, they had amassed a six-figure portfolio, thanks to the power of compound interest.
Read more about the value of investing over time in our article here When Investing, Always Remember the Rule of 72.
If you’re unsure where to start, Rose recommends speaking with a financial advisor. He emphasizes that no one becomes rich overnight, but steady investing over time is the surest path to financial freedom.
Conclusion: Take Control of Your Financial Future
Adam Rose’s book “9 Money Habits Keeping You Poor” is a wake-up call for anyone struggling to get ahead financially. By identifying and breaking these habits, you can begin your journey toward financial freedom. The key is to start small and stay consistent. Whether it’s tracking your spending, building an emergency fund, or learning more about taxes and investing, each step brings you closer to the life you want.
I’ve read this book twice now, and learned something each time. If you’re struggling to make ends meet, and have no provision for the future, this book is a must read.
Disclaimer for ManageYourMoney.ca
The information provided on ManageYourMoney.ca is intended for educational and informational purposes only. It should not be taken as financial advice. The opinions shared are those of the authors and are meant to encourage sensible financial habits and decision-making. We recommend that you do your own research or consult a certified financial advisor before making any financial or investment decisions. All investments come with risks, and there is no guarantee of success. Past performance is not a reliable indicator of future results. Always consider your personal financial situation and risk tolerance before pursuing any investment opportunities.
As always, I am not a qualified financial advisor. I just relate financial management to my own experience which may not resemble yours at all. Advice is frequently worth exactly what you paid for it. Most of mine came from expensive experiences.
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