So, You Want to Remain Financially Poor? 25 Great
Ways to Become Financially Poor and
lot of people are clearly not good at managing
their own income and they normally end up broke month after month.
The fact is that the cycle of overspending usually leaves them poor,
even if what they earn monthly actually means they are seen as well
above the poverty line.
if everybody will like to be successful
financially, then why isn't
the answer isn't an easy one. The truth is that there are so many
circumstantial reasons, such as having no mentors, staying in a place
where there's a lot of competition for jobs and Walmart happens to be
the only place hiring, and not having the right access to quality
most times, being poor is just a state of mind. A lot of times, being
poor creeps into your head and takes over. Listed below are some of
the bad ideologies, behaviors, and mistakes which so many people fall
into that normally keep them from getting success.
1...Spend more than you earn
to the owner of Side Hustle Nation Nick Loper, the major cause of
being broke / poverty is almost always the same: People “spend more
than they earn.” “This is the major cause of bankruptcy as far as
I know,” said Loper.
also went further to say that the good news is you can simply face
this from both sides of the equation. “Just spend less to actually
live within your means and then work
to earn lots more so that you can have more financial breathing
2...Live on government benefits and avoid to work
on government benefits is also known as welfare dependency and it is a
state in which a household or an individual highly depends on
government welfare benefits for their income for a very long period of
time, and without this income they would not be able to meet daily
living expenses. Avoiding to work while depending on government
benefits lead to poverty.
3...Lacking financial discipline
to Merriam-Webster discipline is a method of behaving which shows a
willingness to follow orders or rules. Although a lot of people
normally associate discipline only with social behaviors, it can also
be applied to the way you manage
your finances. Financial discipline can be described as how well
you are able to control your saving and spending to the strategies
which you have already set to achieve your monetary goals.
you don't actually have a financial plan in place, it will be very
hard to be disciplined about the way you use your money because you
didn’t create any guidelines for yourself which you are supposed to
follow. Now when you are creating a plan, always take a look at both
the short-term and long-term dreams which you have. The fact is a
budget is actually a part of the plan but the reason isn't to stop you
from using any money. Instead, having financial discipline normally
allows you to make sure you have the money for what's actually most
necessary to you.
financial freedom is
actually not a very simple goal. Most people don’t know the
principles of financial discipline because they start too late. They
normally spend up all their income
every month and find it very hard to put aside savings each month.
financial discipline isn’t a good thing, but it’s actually a skill
that is very simple to learn.
4...Lack of financial education
education can be described as the addition of debt, financial and
credit management and also the knowledge which is important to make
financially responsible decisions that are part of our everyday lives.
Financial education includes knowing exactly how a checking account
works, the real meaning of using a credit card, and how to prevent
debt. Financial education have an impact on the day to day decisions
made by an average family when they are trying to fund their
children’s education, buy a home, balance a budget, and ensure an
income at retirement.
lack of financial education
brings about poverty and it is not an issue that is only in developing
or emerging economies. People in advanced or developed economies also
fail to show a big grasp of financial principles that is needed to
understand and negotiate the financial landscape, effectively manage
financial risks and then prevent financial pitfalls. Countries all
over the world, from Japan to Australia, or from Portugal to the U.S.,
are faced with so many people who do not know financial basics.
level of financial literacy
is different according to education and income levels, but studies
shows that people who are very educated with high incomes can also be
very ignorant about the issues of finances just like those people who
are not very educated, lower income people. But in general, people
with low income tend to be less financially literate. And it seems
they don’t want to learn. The Organization for Economic Co-operation
and Development (OECD) in a recent survey which was done in Canada
found out that choosing the right investment for a retirement savings
plan was harder than a visit to the dentist.
5...Get a loan for everything
you really want to come out of the poor cycle, then you need to know
that using cash to purchase things (most especially products which
depreciate in value) is the main key to coming out of the “poor”
cycle. Have you ever taken a look at what part of town you normally
find the rent-a-centers? It isn’t actually where the rich people
stay. Just like Kiyosaki said in his popular book, Rich Dad, Poor Dad,
the poor and middle class immediately purchase their luxuries even if
it is on credit, while the rich wait, save up and buy it with cash.
6...You’re stuck in a debt trap
Wong of Brokepedia said that when you are poor, it’s very simple to
get stuck in a debt trap because you will always be very desperate. It
may be a debt settlement scam, payday loan or maybe just making use of
a credit card for an emergency purpose, it’s very easy to make quick
decisions when you are stressed, and these decisions normally keep
7...Use credit card for everything
lot of people make use of their credit cards for everything right from
a new television to a pack of gum, and then make full payment for the
bill each month and get big rewards. But, without the right controls
in place, you could easily see yourself loaded down with lots of debt
than rewards points.
if you are much disciplined, paying so many monthly expenses through a
card normally pay off big time. But charging every possible purchase
can easily backfire for those cardholders who are still new to
budgeting, or just have little in the way of emergency savings or who
aren’t in a habit of keeping their charging in check.
technology we can always monitor the balance in our checking and
savings account online. But, statement of credit card is monthly. You
will have to put in place a system to track when the money is coming
in and where it is going out, in order to frequently reconcile them.
Horack, a certified financial planner also known as Your Financial Mom
said that, spending today and having a plan to pay tomorrow can easily
muck up your money management.
said that if you run all your expenses through a card, then “You
will always be one month behind on your finances.” When you log into
your savings or checking account, you might even get tricked into
thinking you have some extra money not knowing that it’s already
spent because you owe it to the credit card company.
also have to know that using credit at the store makes it very simple
to use more money on a regular basis, says William Davis, a certified
financial planner at JRB Wealth Management. “Credit cards normally
encourage and allow people to overspend,” he says.
money by credit card usually dulls the pain of parting with cash,
research says. One research found out that people were willing to use
over $200 to organize a hypothetical party when making use of a card,
but only $145 when paying with cash. Research has also show grocery
shoppers who pay with credit are more likely to buy on impulse.
8...Never save money
you don’t make much money
and you can hardly pay your bills, then the idea of saving
money will be very laughable. When all that you only have left in
your hand at the end of the month is just $10, why will you even
bother to start saving? Now it is because everybody needs to start
somewhere, and if you work very hard at it, your financial situation
will definitely improve over time. The truth is saving money is always
worth the effort because it normally gives you peace of mind, it also
gives you options, and the more you save, the simpler it becomes to
get additional savings.
9...Lack of planning
of planning is also one of the main causes of poverty. So many old age
people usually suffer from poverty because of the lack of regular
savings or income. Besides the weakness physically, poverty normally
hurts them a lot. That’s the reason we always see so many old age
people trying to get some monetary aid. Nowadays it is quite simple to
prevent by going for old age pension plans or making sufficient
10...You don’t stick to a budget
a budget is personal finance 101, yet a lot of individuals still
don’t have a budget or they just refuse to stick to one. “So many
of them usually end up in financial
hardship just because they think they don’t need a budget,”
said Michelle Schroeder-Gardner, who is a personal finance
blogger at Making Sense of Cents.
truth is no matter how poor or rich you are, a budget is actually a
strong necessity because it can assist you to figure out where your
money issues are and what you will need to do in order to improve your
11...You buy depreciating assets
Hayes, who is a personal finance blogger at Well Kept Wallet, said
that one of the major reasons which normally make
people to become very poor is that they always focus their time
and money on buying assets which depreciate such as boats, cars, and
ATVs etc. Due to this, they only have small resources which they use
in building wealth, thereby making them to continue living paycheck to
how can these issues be solved? Always focus on buying assets which
appreciate such as real estate and stocks, which would easily grow
with time and then make them to have more resources so that they
won’t live in poverty anymore,” Hayes said.
12...You’re ignoring big debts
to Robert Farrington, who is the founder of The College Investor, when
you are poor, notices that are overdue and lots of bills to pay are a
big source of dread and tiredness. But preventing those issues and
failing to manage your debts
will only make them very worse.
lot of young men and women are burdened by student
loans and some other debt,
still they refuse to realize that there are so many different options
out there for them,” Farrington said. For instance, for student
loans, there are so many programs which can assist you with
forgiveness and even lower payments. But you will have to take some
positive action in order to seek out these programs.
13...You feel powerless
to AJ Smith, who is the managing editor of SmartAsset and the vice
president of content strategy. When you are in the center of a financial hardship or when
you are poor, it can easily make you to always feel very powerless
to do anything to change it. But when you give in to those feelings of
helplessness it will keep hurting you.
getting the right unbiased advice and knowledge, people can easily
feel confident and empowered in their personal finance decisions,
Smith said. They can then take some easy steps to make a good
Buy My Books at Apple iTunes,
& Noble book stores.
Also available in other languages.
to personal finance expert Barbara Friedberg, one of the reasons most
people normally end up very poor is because they refuse to pay
themselves first. Paying yourself first actually means that you have
to put a portion of each of your paycheck into a savings account
before you use the rest to cover expenses.
14...You put today’s happiness before future
is sometimes generational, according to Luke Landes, who is a speaker
and also a personal finance writer at Consumerism Commentary. It’s
very possible that you may be poor just because your family has always
been poor, “which is actually one of the strongest environments for
making progress,” Landes said.
lot of people who are supposed to be in good financial shape may not
be, simply because the decisions which they make aren’t in line with
their financial needs for the future, Landes said. “Making some
conscious decisions which need some thought about the future isn’t
always as satisfying in the moment like choosing something that they
hope will have an immediate positive effect on happiness.
15...Have great ideas but do nothing about them
start with you don't really know if your ideas are good or not, until
you start executing them. Before you start executing them they're just
fantasies. The very first solution required then to have so many good
ideas, is to know that a lot of them aren't so good after all; with
that you will have lesser and truly awesome ideas, and that will make
you not to feel like you have too many of them.
you will have to start convincing others that your ideas are really
good - so good, that those people will need to work on executing the
ideas with you just in return for part of their value in the future.
most creative thoughts and best ideas are nothing more than hot air if
you don’t have the right idea how to turn them into reality. And
having the normal idea isn’t the strongest part of doing things
which are innovative.
what exactly does it take to execute ideas? It requires the motivation
of the individual to always make things possible and also finalize
them. Let’s say you have a project team of just five people, all of
them will be highly motivated to come up with your big idea together.
This is actually because finding ideas and brainstorming is always
fun. But when it eventually comes to execution, the difficult and most
important aspect is that some of your team mates will definitely loose
motivation. The truth is time which is needed to make new things out
of ideas is always hard, boring and time-consuming. But this is
actually the time where the work actually gets done.
truth is they will never be great new things without the execution of
ideas and there are so many real and big ideas out there. But the fact
remains that most of these ideas will never be transformed into
reality just because there is no one to make it possible. You have to
always be aware of relaxed brainstorming traps and creative ad-hoc
meetings which sometimes may easily finish with the idea that is big
and also give everybody else some involved the feeling that great new
things came up. But new things which are great aren’t invented as
long as you only had an idea and there’s still lots of work to
finish before these great things becomes reality at the very end.
Great ideas are usually the fuel of creative life, but you have to
work harder on turning these ideas into reality.
you ever stopped to think about the reason why your finances are just
non-existent or out of control? It is actually due to the lack of
focus. People do not know that the mind is a strong tool which can
easily be used at your command and the right method to use the mind is
to easily focus or concentrate on your desired outcome.
you frequently focus on the things which you don't have, then you will
continue not to have it. If you also focus on the things you can't do
well, then you cannot do it. The fact remains that if you focus on the
lack of anything, then that is what will simply manifest because your
focused thought is actually what you have in your mind.
thing is that we become what we actually think about all day long, for
instance try and focus on something that’s negative and also keep
that thought for the first part of your day, then watch how more
negative things will keep coming to you because the more you are focus
on things that are negative the more and more you will see negative
things just keep showing up from nowhere. Now if you will like to
shift your focus, you will have start to concentrating on something
positive for the rest of the day, such as something you want in the
future or happy thoughts from your past, you have to always keep
positivity in your mind and watch how good things start to take place
one after another.
you have to know that your mind is a magnet and it will give to you
anything you are focus on, so there is no exception to this
whatsoever. Maybe you will say that you want to become rich or you may
say that you want to do so many things in order to go away from
poverty but if you do not have a good determination and desire on the
right way to get the right things you want you will never get it.
truth remains that the lack of focus or the power of focus is what
will actually make the difference in all that you do in life such as
remaining poor. Now start to focus on what you want and you will see
the difference in your life begin to unfold just because you really
want it to.
17...You have refused to learn personal finance
science of handling money is called personal finance. It contains all
financial activities and decisions of a household or an individual,
like the practices of earning, spending, saving, and investing.
matters of personal finance
normally include the buying of financial items, such as life and home
insurance, credit cards, mortgages and of course different investments
and investment vehicles. Banking is also see as a part of personal
finance, which includes savings and checking accounts and then 21st
century mobile or online payment services such as Payoneer, Vermo and
financial activities of people usually fall under the purview of
personal finance; personal
planning actually involves analyzing your current
financial position, thereby predicting long term and short-term needs
and also executing a strategy to fulfill those needs within personal
financial constraints. It normally depends on one's desire, income,
expenses, individual goals and living requirements.
18...You have no degrees or training
writer for Cheapism.com and a consumer expert by name Louis DeNicola,
said that in most cases it usually comes down to some unfortunate
circumstances which normally work against you. There are a lot of
people out there who don’t have access to good-paying jobs and they
also have very little opportunity or time to get training that would
easily let them get one of those high paying jobs, according to
19...You’re investing in stuff instead of yourself
of Investing to Thrive who is also a personal finance writer by name
Julie Rains, said that the disadvantages in the economy play a very
big part in why some people are very poor, but that is actually not
the only thing which hold so many people back. Some others might
simply find themselves in crises because they have not be investing in
areas which has long-term benefits such as savings, professional
career, investments and education and they over invested and
overextended themselves in some other areas, like upscale housing and
20...You are always trying the get rich quick schemes
to Jon Dulin who is the founder of Money Smart Guides, lot of people
are actually looking for the easy and fast
way out of poverty and they are trying all they can to get rich very quick. Whether it is a business idea, a job or even a hot stock, a lot of us usually pursue
the idea that we can easily come into abundance wealth overnight,” Dulin said.
Want free Audio books? Get one of my Audible Audio books of your choice for free. Click Here
the truth is it doesn’t work this way, he said. You have to put in
lots of hard work in order to become rich. You normally see the rich
and think that they just got very lucky or made it without much work.
But you didn’t see behind the scenes at just how much work they put
in just to get where they are currently.
get-rich-quick scheme is a strategy to get high rates of return for a
little investment. Get rich
quick is a term that has always been used to describe those
investments which are shady since at least the early 1900s.
schemes normally promise that participants can get some high rate of
return with just little risk, time, skill or effort. They often assert
that wealth can be gotten by working at home. Legal and quasi-legal
get-rich-quick schemes are mostly advertised on newspaper,
infomercials and in magazines. Illegal scams or schemes are mostly
advertised through cold calling or spam. Some types of advertising for
these schemes usually market compact discs or books that are about
getting rich quick rather than asking people to directly invest in a
have to know that ninety-nine percent of the people who are trying to
get rich very fast usually fail and chances are you will fail also
too. And if it happens that you are that lucky person and make a quick
buck through get rich quick scheme, it will definitely make you poor
because behind running after a short-term gain will actually distract
you away from your long-term goal.
if you took that time and spend it on a long-term
business, then you would probably be a lot further. Plus, you will
definitely make more money on the long run, most especially if the
business you have decided to spend all of your energy and time on is
something you are absolutely passionate about.
the short run, you’ll have a very little opportunity
of getting rich fast. So you will not only lose money and time by
going after that golden carrot, but you will also get distracted from
your long-term goal thereby making you remain in poverty.
why do you like wasting your time always trying to go after something
that you can never obtain? You will make a lot of money and live the
poor cycle if you decide to build a “real” business.
21...You don’t know where your money is going
Freedman, who is a personal finance writer and expert, said the major
thing which she sees that is keeping people in the
paycheck-to-paycheck cycle is actually not having a budget, because if
you don’t actually know the right place your money is going
currently, then you won’t be able to turn it in the direction that
you’d prefer it would do the most good, Freedman said, whether
that’s working toward retirement savings, saving up an emergency
fund, staying current on rent or mortgage payments, or even paying for
a vacation in cash.
you know that you have enough money which you can use to deal with all
of your needs and also some of your wants and those pesky emergencies,
you can easily sleep very well at night.
22...You don’t separate wants from needs
are so many people out there who find it very difficult to
differentiate between needs and wants, said Grayson Bell, who is a personal finance blogger at Debt Roundup. They normally use the word
‘need’ for almost all the things they buy, which cause them to
always believe that they ‘have’ to use the money.
might have ‘need’ of a car for transport, but you will definitely
‘want’ the luxury model, he said. This mentality always keeps us
is one of the root causes of poverty
and failure to be
successful in all the activities of life. A lot of people describe
laziness as the behavior of resting even before working. So in order
to be successful in life one has to understand the very best methods
on how to stop being lazy.
Everybody who wishes to have a future that is prosperous need to stop
being lazy and work very hard because hard work is actually the key to
success. Laziness normally reduces ones productivity of a person be it
in the work place or in their personal life. A lot of managers and
some other human resource managers do not like to hire people who are
lazy but they prefer to instead go for the people who are hard working
and those who are results oriented.
of the main tips on the ways you can use to stop being lazy is by
having the habit of getting out of bed immediately you hear the sound
of the alarm. So many people usually ignore the alarm because they
normally prefer to continue sleeping and press the alarm snooze button
or even switching off the alarm. In order to stop laziness one needs
to have a habit of waking up immediately you hear the sound of the
alarm. Making sure you always do this for over 30 days can easily
assist anybody to stop being lazy.
way to stop being lazy is to engage in any physical activity which can
easily get you started most especially during the morning hour. You
can simply decide to write articles, tidy the house, wash some clothes
or dishes or maybe any other activity which has not being done can
also assist one to stop being lazy. The actual objective of this tip
is for you to get satisfaction from completing a task. Exercise is
also a method which has being proven to assist in keeping the body
healthy and fit. It's a fact that is well known that exercising assist
in improving the immune system of the body to fight diseases.
a habit of exercising for at least 10 minutes daily can easily help
one gain so much momentum on stopping laziness. This is a very short
period for anybody but you will have to increase the time duration
immediately you start getting used to the exercise. This can simply
assist you improve his or her health while at the same time keep you
away from the behavior of laziness. You can always make a list of the
tasks that you will like to achieve in a day. This list will always
act as a guide to you on what to always do during the day. The list
does not have to be too long but you should try to make it very
manageable. Making a commitment to yourself can easily assist in
achieving all the goals you have set for the day.
24...Spend too much time sleeping
is a gift of God and it is a very great natural blessing; it is what
nature needs, and it is very desirable; it is to be loved, but not
immoderately; sleep is sweet to a man, and it is what a man should be
thankful for; yet must not indulge himself fully into it thereby
neglecting the proper business of life; nor to be used except at the
right time for it; because the eye is actually made for sight, and not
only for sleep, connecting the words with the preceding; and therefore
does not have to be kept inattentive and shut to business, which most
times usually end in want and poverty; Do you know that according to
the bible spiritual slothfulness and sleep usually bring on lots
of poverty in the souls of men, both as to the performance of duty
and the exercise of grace. Open thine eyes and thou shall be satisfied
with bread; that is, open thine eyes from sleep, awake and keep so,
and be sedulous and industrious in whatever business you are into; so
that you will have lots of food for thyself and family. It may be
applied to awaking out of sleep in a spiritual sense, and to a
diligent attendance to duty and the use of means, whereby the souls of
men come to be satisfied with the goodness of the Lord, and the
fatness of his house. So you have to always sleep less in order to run
away from poverty.
The Bible says in: Proverbs 24:33, 34 New King James Version (NKJV) that:
A little sleep, a little slumber, A little folding of the hands to rest; So shall your poverty come like a prowler, And your need like an armed man.
Proverbs 13:11 New King James Version (NKJV) says: Wealth gained by dishonesty will be diminished, But he who gathers by labor will increase.
Ecclesiastes 10:18 New King James Version (NKJV) also says: Because of laziness the building decays, And through idleness of hands the house leaks.
Want free Audio books? Get one of my Audible Audio books of your choice for free. Click Here
25...Always have a story to tell why you haven’t
made the money
you ever gone as far as talking to people that are poor about success,
they will tell you every reason in their book as to why they haven’t
yet done something to accomplish their projects, dreams, or ideas.
might even say it’s family related, maybe an illness, or just about
some other reason which they can easily come up with in order not to
do nothing whatsoever with their life.
people actually don’t have any reason why they are not yet wealthy
because they are actually working on something to get there, even if
it being working at another person company. Yes, you can easily become
a millionaire by working for some other people, but it’s not simple,
and there is nothing ever that is ever easy.
giving so many excuses about lack of time, lack of education and poor
parenting is what poor people do.
Read Next...Financial Fitness, Blockchain, Positive Thinking, Blogging for money, Top Website Hosting Companies, Nigeria Stock Market, Selling on eBay, Amazing Business Ideas, Your Simple Guide to Financial Abundance, Financial Freedom and Wealth Creation Formula, Starting a Money Making Internet Business, Most Common Immigrants Jobs in the United States, Tips for Healthy Living, Earn Income Selling on Amazon, Retirement Planning Tips, Quick Easy Ways To Make Money, Best Investments Ideas, Website Traffic Tips, How to Become Financially Poor
Sign up for EBATES Here: It is a shopping portal and it offers cash back and coupons from more than 2,000 online retailers.
You will also love these great articles:
Want More Interesting Money Making Business ideas? See extra ways to make more money below: