5 Things That Can Keep People Poor For The Rest Of Their Lives
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However, poverty is not only a lack of financial resources, as most people believe. It is being in a situation of having to make difficult decisions between things such as shelter and food that defines poverty. In this case, it’s about not having access to health care or education, as well as not having any employment options. Read on to find out more.
1. You Don’t Have a Money Plan
It is the lack of a financial strategy that is the most significant reason for poverty. The desire to have money left over at the end of the month is understandable, but our actions often get in the way of our intentions.
She recommended automating bills, saving, and investing as soon as paychecks were received to stop the behavior and combat negative spending habits. When circumstances arise, “it will help to cushion the blow,” she explained. “It will also provide you with something for retirement.”
2. You Don’t Separate Wants From Needs
Individuals, on the whole, have difficulty distinguishing between desires and requirements. They employ the word ‘need’ to justify practically every purchase they make, leading them to assume that they ‘have’ to spend the money in question.
To go around, you might “need” an automobile, but you might also “desire” a luxury model. Financially, we suffer as a result of this mindset.
3. Drinking Too Much Alcohol
A glass of wine or beer now and then is fine, but excessive drinking might harm your financial future. Recognize the possibility that excessive drinking can affect your memory and ability to think clearly. How are you going to plan for your financial freedom if you’re not able to think and remember clearly? Excessive alcohol intake is detrimental to your financial freedom.
4. Spending above your means
One behavior that can put you in poverty is spending more than you earn. It is not expected that you will spend all of your earnings on unnecessary expenses. You have very small and nearly non-existent prospects of getting wealthy if you haven’t begun earning more than you spend yet. Maintain a financial plan, regardless of how much money you have in your bank account or savings account.
5. Owing Debts
Some debt, on the other hand, may be acceptable. However, if you don’t feel confident in your ability to manage money, it’s better if you avoid debt entirely. It is generally recommended that you aim to increase the amount of time you spend money whenever possible. Consider asking yourself questions such as “Will I be satisfied with this purchase a year from now?” before making a large investment.
I’m jobless, people I helped pass by to give me money – Former MP
