Are Your Spending Habits the Reason You’re Not Building Wealth?

Did you know over 50% of Americans live paycheck to paycheck? If you’re earning a decent income but still feel trapped, you’re not alone.

I know this firsthand because for years I struggled to manage my money. Each month felt like starting over with nothing to show for my hard work.

The truth is, business success does not guarantee real wealth.

Like many successful entrepreneurs, you’ve worked incredibly hard to get where you are. Yet somehow the money keeps flowing out as fast as it comes in.

When you are laser focused on growth, building wealth often takes a back seat. Having a solid budget and better money habits changed everything for me.

I'm still on my wealth-building journey, but between managing my own money and learning from the entrepreneurs I interview, I've picked up some solid wisdom.

Let me show you what I've learned about growing wealth without giving up the life you love.

Why Earning More Won’t Make You Wealthy

Most successful entrepreneurs think a growing business means growing wealth.

In the past, every extra dollar I earned became an excuse to spend more. But creating a budget helped me save and invest consistently, even though it wasn’t easy at first.

Each income milestone often triggers lifestyle upgrades:

• A better apartment after landing a big client
• A luxury car to match your business image
• The latest tech stack to boost productivity

These upgrades feel justified because your income supports them. But overtime, each new expense makes your lifestyle more expensive.

How Comparison Steals Your Wealth

Comparison is the real wealth killer.

I still struggle with this. Sometimes seeing friends with their new purchases triggers serious FOMO.

I remember buying an Apple Watch because a family member wanted one. I ended up spending $400 on a watch I only wore a few times.

That experience taught me something. Now I budget for items I want in the future.

When I want a new MacBook or wardrobe upgrade, I check if I have money set aside for it. If not, I either move funds from other categories or simply wait.

Building Money Systems That Stick

If I’m honest, budgeting isn't fun. But it helped me climb out of debt a few years back.

In the past, I used a simple Google spreadsheet because apps like YNAB didn’t work for me. Now I'm integrating everything into Notion since that's where I manage my systems.

Multiple Capital One checking accounts help me budget for different purposes:

• Daily expenses
• Clothing and personal items
• Future purchases
• Savings and investments

That fifteen-minute weekly review might not be the highlight of my week, but it keeps me aware of where every dollar goes.

Grow Wealth, Not Just Income

Growing your business is important. But focusing only on income misses the bigger picture.

Our dollars lose value every year due to inflation. I learned this hard truth reading “The Bitcoin Standard.” Bitcoin opened my eyes to wealth preservation and growth potential.

With Bitcoin hovering around 92K as of December 2024 and projections hitting 13M in 20 years according to Michael Saylor, there's an enormous opportunity to outpace inflation.

I used to believe traditional retirement accounts were the best path, but I'm now leaning towards a hybrid approach with a stronger focus on Bitcoin.

Here are a few helpful resources:

1. Why Bitcoin Matters (interview)
2. Bitcoin Standard
3. Fiat Standard

Finding Your Freedom Number

How much money do you actually need to live the life you want?

Most entrepreneurs never calculate this. They chase higher revenue without knowing their target.

Make it easy on yourself. For example, use ChatGPT to break down your monthly expenses and project future costs.

It can calculate everything from basic living costs to retirement needs and suggest monthly contribution targets.

Include these in your calculations:

• Basic living expenses (housing, food, utilities)
• Business expenses
• Lifestyle expenses you actually care about
• Unexpected costs
• Future goals like travel or family time

Making Wealth Building Automatic

Tax efficiency is your secret weapon.

Start with these tax-advantaged accounts:

• Solo 401(k) or SEP IRA for self-employed
• Health Savings Account (HSA) for medical expenses
• Real estate investments for tax write-offs

I set up automatic transfers to an external bank account. Not seeing the money in my main account makes it easier to save.

My daily expenses stay in my primary account with my budgets. This system isn't perfect, but it helps me save 90% of the time.

Your Wealth Journey Starts Now

Running a successful business doesn't guarantee financial freedom. Trust me, I've learned this the hard way.

But here's what I know: understanding where your money goes and having systems to protect it makes all the difference.

Whether you start with a simple budget, automatic savings, or exploring Bitcoin, pick one thing and start there.

Small steps lead to real change.

It’s time to turn that income into real financial freedom.