Daily, the choices people make for themselves are what determine whether they will be wealthy or otherwise. Some choices we make are justifiable, while others are just what we do, even though we know perfectly well the risks they pose to our financial security.
From starting our work on a Monday morning to ending the week on a Sunday evening, every little thing we do, has a hand, directly or indirectly in how weak or strong our finances are. These are habits we learn while growing. We learn them from our social circles, most notably from our parents.
Most people who have a positive mindset towards financially related issues are able to do so because of the influence their parents exposed them to, as well as the people they associate themselves with. There could be other factors such as also being financially educated.
Therefore if you still wonder where all your salary went, yet you have few ideas what you did with the money, you might want to know the habits that might be the culprits of your predicament.
This article seeks to create an awareness of how some habits we are engaged in might keep us poor, as well as providing you, with some solutions to this problem. So if you do not want to be riddled with poverty, make sure to read till the end.
9 Habits That Keep You Poor
The following are some of the habits that can keep you poor.
- Wanting To Live A Life Of Luxury
For most young people growing up, they are exposed to a society where people adore superficial things. And since we are in an internet age, there are many people on the internet these days. Due to that, there are a lot of social media platforms that have been created for people to make new friends and the like.
This has served as the venue for people to flaunt their new garments, watches, expensive phones, cars, and many other superficial accessories on a daily basis, all in a bid to sell out the idea that, they are wealthy. Due to this influence, many young people see it as a must to amass wealth quickly to splurge society, As well as those on their social media, so that they can also enjoy fame, wealth, and enjoyment.
This mindset has led people to spend every little fruit they get from their hustles on buying the latest phone, and the latest kick, among many others. In this way of thinking, their main aim is to live to impress. What they do not know is, that such life is a fantasy, and until you are on a certain level of financial stability, such life is absolutely inaccessible to you.
They forget to acknowledge the fact that, money is meant to be used, not spent. As in, money is meant to be used to invest, acquire many assets, and create several streams of income to create more wealth. Due to their ignorance, even those who are able to create several sources of income see it as an opportunity to live an opulent life and spend money on drinks and women to show people how rich and wealthy they have become.
This mindset has been the fall of many great men. Wanting to live a life of luxury will cost you your financial stability. Beware of it. It is better to go with the flow, and always develop the mindset of wanting to invest. If you are a salaried worker, do not buy yourself expensive clothes shoes, and cars.
Save some, invest some, and use some to create small businesses, that can give you more money. Basically, let your money work for you.
- Not Saving
The importance of saving for the betterment of your financial stability can not be underrated. Most people who fail to save a portion of their income, all head toward one destination, and that is poverty. When you save, you protect yourself from unforeseen circumstances that can, test your financial stability.
You can save for your retirement, or even decide to save for the purpose of investing in properties, the future long-term benefits can be quite handsome.
Aside from that, instead of using the bulk of your salary to buy expensive things you think you absolutely need, why not create a savings bucket for them, give yourself a deadline, make some calculations here and there, and save towards the deadline?
If not and you fail to always dip right into your income thoughtlessly, no matter how much money you make, you would soon find yourself rolling in poverty.
- Impulsive Buying
This is a behavioral habit, that people learn when they are growing up. Mostly from their parents or as a result of influence from friends, where they buy things they have absolutely no need for but can’t do without buying them.
This habit if not given proper attention can lead one straight to the dooms of poverty. It can also be a psychological problem, because, there are many people, who have no restraints on themselves when it comes to spending money on things they do not even need.
They go out on weekends as soon as their salaries are in, and once, they know they have the money, they get themselves every luxurious thing you could imagine, they are more prone to go on a shopping spree, with the money meant to last them for about a month, the money, they are supposed to save a few of. They disregard all other matters when it comes to their money and spending. This habit can be stopped, so, do so, and avoid being damned by poverty.
- Indulging In Lotteries And Other Gambling Related Activities
This is a common habit among most young and old individuals. Lotteries and gambling can be addictive for some. Engaging in these habits can suck you off all your money. You must understand that, to win the lottery, or to even win in a gamble, requires one to have immense luck.
You might be lucky today, or tomorrow, or the day after, and possibly, any day within the following months to come, but you will never know, and by the time you get lucky enough, you will have wasted all of your fortune on a small return.
You must not see gambling and lotteries as a form of investment. It is a venue to rob you without a weapon. Desist from playing lotteries or any other related gambling games as not doing so will pave the way for you, which leads to poverty.
- Failure To Track Cash flow
Another habit that can make one poor, is when they fail to keep an eye on how much they are spending as well as how much they are making. Failure to keep an eye on these two important things can lead you to mismanage your finances.
Most people, due to several reasons, feel like it is a burden to track their incomes and expenses but, when you give yourself time to analyze your spending activities, you are able to cut down on some expenses that suck your money. It will be a good eye-opener for you on how you can manage your finances to avoid, poverty.
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- Living Beyond Your Means
Aside from the above-mentioned, another habit that keeps people poor is when they live beyond their means. Many people, both young and old, who are riddled with poverty have one thing in common, and that is how they are known to live beyond their means.
Typically, their spending abilities are mostly on par or above their income, therefore, they are found swimming in debt. These people buy things they do not need, disregarding their incomes. Doing this for a time can put you in really serious trouble.
Make sure to change this habit of yours, track your cash flow, and create an easily achievable budget, with as low expenses as possible, with more plans for investments. Try your very best to cancel out on some subscriptions you seriously do not need. Also, try saving first before even deciding to go for that, trip, or buy that Gucci bag, you wanted.
- Failure To Analyse Investment Deals
Some people, before making an investment, like to reflect back on how they feel about the situation before making a decision. As much as your instincts are also good in making sure you are safe, you must know that relying on them alone to make investment decisions is not the same as relying on your mind and using rational thinking.
Investing requires one to do ample research, seek financial advice, ask the right questions, and make rational decisions. Most people as a habit disregard the hard work part which includes the research and brain-racking aspect and resort to how they feel about it.
By the time they realize this, their money would have gone down the drain in an investment they had very little factual knowledge of. Not changing your ways, can lead you to be riddled with poverty.
- Disregarding Financial Education
Financial education in this digital world has become a very important need one can not disregard without future repercussions, most notably of which is poverty. Most poor people have been found to have little to no financial knowledge of how money works, and how money is made, retained, and multiplied.
Therefore they are basically brainless when it comes to financial situations and as such make certain choices that take them deeper down the road of poverty. Although it would not take much to rectify this problem, most would just decide to not seek the knowledge they know they need. If you are such a person, please make sure to seek professional help from capable people, not a friend who is in the same boat as you.
- Addictive Habits
Addictive habits are really time wasters, and as you know time is money. Also, these habits suck you off your money because since you are addicted to them, you would want to keep yourself in that high feeling. And you would end up wasting all your money, your time, and energy on them.
Habits such as smoking, alcohol addictions, doing drugs, and engaging in masturbation and a whole lot are costly, and at whatever cost, financial or not, all contribute to keeping you poor.
Ways To Rectify This Problem
As much as these problems are quite disheartening, there are several ways to avoid a life of poverty once you decide to quit all of these bad habits. The following are some of the ways to offset the effects of these bad habits and walk the path of affluence and financial freedom.
- Change Your Mindset About Money
From childhood, you have been hardwired to think of money as something to be spent, to be used in exchange for goods and services. But honestly, it does not stop there. It goes on deeper than that. It is also used to make similar money, and many of them as well. Therefore, after quitting all the habits that can lead you to poverty, you must start also to change how you view money, and start seeing it as a tool to make more money rather than to pay for things.
- A Miser – Make It A Hallmark
Being a miser is not a bad thing, it’s only that people will regard you as being stingy. But being a person with a history of poverty, or since you want to avoid it altogether, let it be. In our age, most misers, are the ones with the money. Be attentive to your spending habits.
Anything that may reek of your money must be avoided. In all, you must regard things that take money from your account without any significant impact on your being as a taboo that must be avoided as much as possible.
- Get Educated
You might have a Ph.D. and Master’s degree in several prestigious fields of studies, but that might not mean you have a financial education. Our educational system does not prioritize the importance of teaching students about finance.
Therefore, the majority of the workforce is ignorant when it comes to finances. Make sure to seek financial education. Make friends with bankers and accountants, and let them advise you on money matters. Learn certain investment secrets, and avail yourself of the world of finance. With time, the knowledge will pay off.
- Speak About It
When you speak about your predicament, you get a solution to them, but watch who you relate your problems to. Make sure the one you tell your problems to has a certain capacity to help you. Talk to your best friend or a capable professional person who can give you advice as well as refer you to other experts, who can help you on your path to financial freedom.
- Avoid Debts
As much as certain loans can free you from a certain headache, do not make them an easily accessible choice. Avoid Loans you know you do not have the ability to pay. Loan interests can be a headache to pay, therefore, make sure to avoid them entirely. Unless your life is on the line. Save yourself from poverty and enjoy a life of peaceful affluence.
Final Words
Poverty is not an experience you must wish to experience. And if you do not want to be poor, make sure to avoid the habits above in this article and prioritize the ideas, provided, as they will be your guiding map in this journey called life.
