Danyls NgongangSenior Software Developer, Convit GmbH · Student at RWTH Aachen University And Passionate of BasketBall 🏀

30 REASONS PEOPLE FAIL, Bad Spending habits || Coach Raphael Djine, iLAED Global

20 Feb 2022 · 3 min

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3:00

In this segment Coach Raphael Djine warns viewers about the dangers of indiscriminate spending and what he calls a "spending disorder," where individuals consistently spend more than they earn. He emphasizes the necessity of a concrete budget, urging people to write down and track expenses on a daily, weekly, and monthly basis to understand average outflows such as gas, mortgage, insurance, and other recurring bills. By comparing total income to total outflows, he highlights the need to either cut expenses or generate additional income when a deficit exists. Djine differentiates between good and bad debt, advising that debt should be used strategically for business‑related expenses (e.g., advertising a house) rather than for personal consumption (e.g., fast food, vacations, unnecessary clothing). He concludes with practical guidance on responsible credit‑card use, stressing that purchases should be essential and repayable.

Chapters

Stay focused. Okay, 2021. The habit of indiscriminate spending. Another one, the spending disorder. There are people that have a spending disorder. They like to spend money, but they don't understand money. They just spend. You make $100,000, but you spend $120,000. Even when you calculate your bill, your monthly bill is $120,000, but you spend— it's $120,000 per year, and you spend— you earn $100,000 per year. If you do that, you always fail. You have to know how to balance your budget. You must have a budget. You don't have to be a— You don't have to be a— accounting to do that. Write it down, bullet point. How much do I spend per day? How much do I spend per week? Carry that to it. How much do I spend per month? Because you have some bills that you must— that just come up all the time. You have some that may come from time to time, but you can balance and see what's the average. Maybe your gas and all that, you may not know exactly how much you spend on gas. How do you know? But you must have an average between $150,000 to $200,000 or $250,000. My mortgage— your mortgage, what, $10,000? Insurance and all that. Right. These things are things that you can see for you. So how much am I bringing in? And if you see that what you are bringing in is lower than what is actually going out, You have to develop more source of income. You have to stop spending what you don't have. I mean, it's just a reality. You— there's no way you can spend what you don't have. I mean, some people say, well, use debt, but there's good debt and bad debt. Don't use debt to buy McDonald's. Bad debt. You can use debt to advertise. A house that you put on the market and know that the cost of advertising for that, you know, what you get out of that house is maybe $3,000 for advertisement. So when you sell the house, you go ahead and take that $3,000 and pay the credit card. Good debt. Don't use a credit card to buy a suit. Unless, I mean, it's a uniform to go out and do whatever you need to do, but make sure— You can cover that back. Don't use a credit card to buy unnecessary stuff. Don't go on vacation on credit card. Learn how to spend and spend the money the right way.