See 7 Reasons Why You Are Always Broke Number 1 and 4 Will Shock You
“I’m broke.” Have you said this before?
Many of us have been in this place at one point or another (or frequently), and it can be scary — even terrifying. You can’t go out with your friends because you just can’t afford it. You can’t spend money on anything at all. You’re not even sure you can even make rent or buy groceries. So, what do you do?
First, take a deep breath and remind yourself you’re going to get through this. Perhaps you’ve been in this place before. Chances are, it worked out okay. Money isn’t everything, but you do need it to live your life. Remember: there are solutions to this crisis.
According to the book ‘The richest man in Babylon “a man’s wealth is not in the purse he carries. A fat purse quickly empties if there be no golden stream to refill it”. Money is one thing that is hard to get, but very easy to spend. If one is not careful or adheres to certain rules in managing money he or she will always be broke and cannot save money.
Nigeria currency is gradually losing its potency, prior to that most people are in the verge of poverty. Despite deteriorating conditions of livelihood, most people hardly go broke and they save money. One would ask himself, how is that possible? It is very possible and I will tell you how. There are reasons why you are always broke and cannot save money like others. From my own perspective, some of these reasons are stipulated below.
1. You lack the right mindset:
The ability to save money and never to get broke begins with the right mindset. Set your priorities right and always go with the things you need first. It is called ‘scale of preference’ in Economics. Learn to do ways with things that will make you spend money unnecessarily.
It is discourage to note that many people lack the habit of saving at least 20% of their monthly earning.
2. You Don’t Plan your Spending:
Prudent is a virtue everyone ought to hold on to. Deprive yourself from spending money extravagantly. Plan how to spend money even before it comes. Write a budget and adhere to it. Don’t spend your money outside your budget unless for unforeseen circumstances. The reason you are always broke and cannot save money, is because you don’t plan for your spending.
3. You Spend more than you earn:
It is said” cut your coat according to your material “. Don’t spend more than your earnings. Most people spend more than they earn and end up borrowing. When you are living in debt it will be very difficult for you to save money and you might end up being broke.
4. You Lack Self Discipline:
Spending money wisely and prudently comes with self-discipline. Lacking in this aspect, it will be difficult for you to save money. As the money comes, within a twinkle of an eye you will find yourself being broke. Develop a good habit when it’s comes to spending money helps tremendously.
5. You Don’t Invest:
To avoid being broke, you have to learn how to invest. Identify good business opportunities and invest in them. Don’t depend in one source of income, if you want to avoid being broke. Remember don’t just take risks, take calculated risk.
6. You keep putting off Savings:
It is said “the journey of a thousand miles begin with a step”. Most people don’t save money because they are waiting to start earning big . Learn to start saving with your little earning. You can start saving with as low as 5% of your earnings. With time you will be surprised with how much you have saved. Procrastination is the theft of time, start now.
7. You Lack Money management:
Money is management is more important than getting money. When you lack good money management, you will always end up broke and cannot be able to save money. Build yourself in good money management, through self-discipline and wise spending.
I believe when you avoid these things I mentioned, you will avoid being broke always. This article is my personal opinion; hence it is open for criticism and contributions.
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