Sticking to smart money habits is key to building wealth.
Michela Allocca, a former financial analyst who, by 28, amassed over $500,000 in net worth as confirmed by CNBC Make It, understands this perfectly. In 2022, she left her corporate job to focus on her side gig as a personal finance coach.
Her TikTok video, with nearly a million views, shares insights on building wealth from her own experience.
Here are five spending behaviors she avoids:
- Bypassing Sale Traps
Sales might seem like a chance to save money, but Allocca cautions that they often lead to buying things you don’t need. She points out that sales create a fear of missing out (FOMO) and push people to spend.
For Allocca, buying something unnecessary, even if it’s on sale, is still an extra expense. She does buy essentials on sale but is careful not to overspend on other things.
- Curbing Impulse Purchases
A 2023 study found almost all American adults sometimes buy things on impulse, with 64% regretting it later. Allocca stops herself from impulse buying by adding things she wants to a list on her phone, giving her time to think about whether she really needs them.
She suggests waiting a few days before making an impulse buy, as the urge often goes away.
Allocca stresses that not every purchase can be seen as a ‘little treat,’ pointing out the need to control spending.
