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Poverty: So, You Want to Remain Financially Poor? 25 Great Ways to Become Financially Poor and Remain Poor


A 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.

Now if everybody will like to be successful financially, then why isn't everybody wealthy?  




Definitely 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 education.

But 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.  


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1...Spend more than you earn

According 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.

He 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 room.”  



2...Live on government benefits and avoid to work

Living 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

According 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.  



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If 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.

Getting 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.

Lacking financial discipline isn’t a good thing, but it’s actually a skill that is very simple to learn.  



4...Lack of financial education

Financial 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.

A 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.  




The 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

If 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

Kristin 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 people broke.


7...Use credit card for everything

A 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.

But 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.  




With 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.

Pam 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.

She 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.

You 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.  

Spending 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

If 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

Lack 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 savings etc.


10...You don’t stick to a budget

Having 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.

“The 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 financial situation.”


11...You buy depreciating assets

Deacon 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 paycheck.  




Now 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

According 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.

A 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

According 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.

By 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 financial future.  


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According 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 financial needs

Poverty 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.  




A 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

To 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.

Then 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.  




The 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.

So 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.

The 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.


16...Lacking focus

Have 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.

If 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.  




Another 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.

Now 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.

The 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

The 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.

Some 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 PayPal.

All financial activities of people usually fall under the purview of personal finance; personal financial 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

A 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 DeNicola.


19...You’re investing in stuff instead of yourself

Founder 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 luxury products.


20...You are always trying the get rich quick schemes

According 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.  



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But 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.

A 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.

Most 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 concrete scheme.  




You 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.

But 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.

On 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.

So, 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

Donna 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.  


Immediately 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

There 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.

You might have ‘need’ of a car for transport, but you will definitely ‘want’ the luxury model, he said. This mentality always keeps us down financially.  



Laziness 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.  

One 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.

Another 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.  




Developing 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

Sleep 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.



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25...Always have a story to tell why you haven’t made the money

Have 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.

They 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.

Successful 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.

So giving so many excuses about lack of time, lack of education and poor parenting is what poor people do.


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