Following smart money habits is essential for building wealth.
Michela Allocca, who had a net worth of over half a million dollars by the time she was 28, as confirmed by CNBC Make It, knows a lot about this. In 2022, she switched from her job as a financial analyst to work on her personal finance coaching business.
Her TikTok video, which has nearly a million views, shares what she’s learned about growing wealth.
These are five spending behaviors she avoids:
- Not Falling for Sales
While sales might look like chances to save money, Allocca warns they can lead to buying things you don’t really need. She explains that sales are designed to make you feel like you’re missing out if you don’t buy.
Allocca believes buying something you don’t need, even if it’s cheaper, is still spending money you didn’t plan to spend. She buys things she needs when they’re on sale but avoids spending too much on other stuff.
- Resisting Impulse Buys
A study in 2023 found that almost all adults in the U.S. sometimes make impulse purchases, and 64% regret it. To stop herself from impulse buying, Allocca puts items she wants on a list on her phone and thinks about them for a while before buying.
She suggests waiting a little before buying something on a whim, as the desire to buy usually passes.
Allocca emphasizes that not every small purchase is a ‘little treat,’ highlighting the need to be careful with spending.
Click here to see all the spending habits she recommends avoiding.
