Managing income is a challenge for many people, as the cycle of overspending and failure to save leaves them impoverished. As others strive for wealth, many feel compelled to remain poor, even though poverty is merely a state of mind.
Nobody plans to remain poor, and yet many people end up poor. However, here are some pointers that will keep you poor for the rest of your life.
Earn Less, Spend More
According to Nick Loper, owner of Side Hustle Nation, the main reason for being broke is that they live by “spending more than they earn,” which leads to bankruptcy.
Spend less by living within your means and then work to earn lots more so that you can have more financial breathing room.
Avoiding Menial Work
If you avoid menial jobs and rely on other forms of welfare, such as government benefits, whether as a family or individual, this income will never cover daily living expenses.
Lack of Financial Discipline
According to Merriam-Webster, discipline is a way of behaving that shows a willingness to obey orders or rules.
Financial discipline is how well you control your saving and spending to achieve your financial goals. Without a financial plan, it is difficult to be disciplined in using your money because you have no guidelines.
Lack of financial discipline is not a good thing, but it is a skill that is very easy to learn.
Being Financially Illiterate
They say that if education is expensive, try ignorance. The same is true for financial education, including financial management, debt management, and credit management. Financial knowledge influences an individual’s or family’s day-to-day decisions; however, this leads to poverty.
The level of financial literacy varies according to education and income. Still, studies show that people with high incomes who are highly educated can also be very ignorant about some issues.
Putting Everything you Own to Loan/ Borrow
According to Kiyosaki’s popular book Rich Dad, Poor Dad, the poor and middle class immediately purchase their luxuries, even on credit, whereas the rich wait, save up, and buy it with cash.
If you genuinely want to get out of the poor cycle, you understand that using cash to buy things is the primary key to getting out of the “poor” process; therefore, loaning everything would help you out as well.
Borrowing could be an investment, but if you intend to remain poor, borrow for luxury items such as a car, vacation, outings, and so on as an excellent way to become moneyless.
Complaining about Everything
One way you can stay poor is to complain about everything except your attitude and laziness. Blame the system, the government, and the banks that refused to lend your money because they are all bad and have prevented you from becoming wealthy.
Getting yourself Stuck in a Debt Trap
According to Kristin Wong of Brokepedia, it is effortless to fall into a debt trap when you are poor because you are always desperate.
It could be a debt settlement scam, a payday loan, or simply using a credit card for an emergency; it’s effortless to make hasty decisions when you’re stressed, and these decisions usually keep people broke.
Not Saving Money
Saving money if you barely earn an income is a bad idea. Why would you want to save if you’re going to stay poor? Saving gives you peace of mind in uncertain times, but spending all of your savings is an excellent way to remain poor.
Lack of Proper Planning
One cause of poverty is a failure to plan. Usually, planning helps organize and prepare for what is ahead, but failure to do so results in physical and mental weakness.
Not Fueling your Ideas
Regardless of how good you think your ideas are, keep in mind that they are just fantasies. Give your idea a go by putting it into action or else they will always remain ideas.
Exploiting your Budget
It is unhealthy to stick to one’s budget if one wishes to remain poor; however, it is only prudent to exploit it. Michelle Schroeder-Gardner, a finance blogger at Making Sense of Cents, states, “many of them usually end up in financial hardship just because they think they don’t need a budget.”
She added, “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 to improve your financial situation.”
Being Unlawful
This is one of the tried-and-accurate methods of avoiding success. For example, getting involved in a crime and being locked up will allow you to waste years that will prevent you from earning money or getting any valuable skills and resources.
Developing Addictions
Addictions are a great way to waste money. This may be useful in your journey to remain poor. Addictions such as gambling and the use of drugs will lead you to pure bankruptcy.
