This world is built with two categories of people one is rich and another one is poor. The rich people build their wealth and poor people try to look like rich.
Why do most people in the world have a healthy paycheck and are still poor? We have to discuss this in today’s blog.
The rich people look so simple and live a minimal lifestyle. But, the poor people look rich but are broke. Today we have to see the reasons why most people are poor. Also, you can make this mistake with or without knowledge. Please stop it right now and become rich. Let’s get into the topic.
6 Reasons Why Most People Are Still Poor
1. You Are Try To Look Rich
People do not live in this means. They have lots of struggles in their financial life but they look rich in spending. Also they no it is not healthy for their pocket but they did not give up his status.
Looking rich is for fools who don’t care about their life. Don’t live for the society people or social surroundings. Live for yourself and your means.
If you try to impress society you will do it for the time you impress. Buying luxurious cars, bikes, vacations and many more.
Did you think this is our social status? No, it will always danger to your financial life. No one in the world wants you to look rich and live for your loved ones.
Luxurious with the middle-class life driving a car without brakes. This will severely impact your life.
Having a lifestyle below your means. Live with what you have. Probably it is not that difficult for anyone. If you have a good salary, a normal car, minimal spending and a nice family it’s enough for you.
Have means in your life and live a normal lifestyle. You reach the rich life once in an hour life but wait until you reach the status of rich. This is the first reason that will make you poor.
2. Having Bad Debt
This bad debt will be a big burden for every person. The good debt makes money for yourself and the bad debt will suck every single penny you have.
Did you think why bad debt is not good? This will come with an extreme interest rate. Considering every money is connected with another money. Your action will have the same opposite reaction.
We’re you have rich spending habits it will drain your credit card. This credit card will not be issued at the first you pay the debt on time. But, once you miss the credit debt on time it will increase up to 20% interest.
Now the burden will increase up to 2X in times. It will affect you both mentally and physically. It will be not best for your pocket. Suddenly, you meet a medical emergency you don’t have any emergency funds to save yourself.
The rich have the potential to fight against medical emergencies. But, the poor have no funds to save them. They buy more debt from various sources.
Their life is ended with paying off debt and getting the debt. So, save your money for this kind of emergency. Pay off all the bad debt and avoid the spending habit.
3. Having No Budget
People being broke is the biggest reason they have no idea where their money goes. The biggest symptom of being broke is not tracking their expenses.
The expenses are not tracked with the proper budget. Having a budget is a healthy practice to spend money properly. The money you earn and spend is all tracked.
Always maintain a finance notebook in your hand. At the end of the month, list out all the expenses that you made in the month. It will help you to identify where you spend more money on wanted things.
This knowledge helps to minimise spending and live on a budget without any financial burden. The tracking of all the expenses will be the eye-opening one of your life.
Also, it helps to save money with your reserved money. Being on a budget is not a sign of being broke. This helps to live a sustainable life and not much care about chances. Always having a budget plan is a good sign that your finance track is going the right way.
4. You Have The Habit Of Expensive Spending
The expensive spending habits will drain your pocket. Not only buying expensive clothes and a phone make you broke. Also, spending money on bad habits like smoking and drinking makes you broke.
People have to say that these are all the signs of getting rewarded for their hard work. It’s the sign that will make you broke forever.
Take a look at spending on your bad habits. When you save that money you can spend it on other use cases.
This will be healthy for your body and pocket too. This will make your life liveer. Keep in mind that spending on bad habits is like feeding poison with your hand.
5. Gamble With Money
Another addictive habit of being broke is gambling. This will only drain your pocket and everything related to money.
This will affect your future it’s actions are more severe than you think. Gambling is not good for anyone in the world. This will increase the greed for money and in the end, you lose everything.
The real winner of this gambling is the person who runs the gambling business. The majority of people buy a lottery ticket and test their luck to win the jackpot.
It’s not simple to get this jackpot. Millions of people buy lottery tickets to get the jackpot. It’s given to only one person who has the right lottery ticket.
So, luck will give everything for only a period. The hard work and earning this money will get stable in your pocket.
Have the right business and job to get this money by doing hard work. Don’t believe in luck all the time to save money it won’t work and it will put you in a helpless situation.
6. Not Having Financial Goals
Why most of the people being broke? Because they do have proper financial goals. The financial goal is planning the future and saving or investing your money in financial instruments.
Without a goal, there is no motivation to do the work. Without setting a goal you will spend lots of money.
Having a proper goal motivates you to use the money properly. Saving and investing will help you to get out of being broke situation in a long period.
Set a proper financial goal and have a proper roadmap for achieving this goal. These will be the two main things that will help you to achieve the financial freedom
This is the 6 reasons why most of the people are still poor. Now, you get these points and you will be properly understood and implemented in your life. It will make a great impact on your financial life. Less savings and more investment is the ultimate key to becoming successful in your financial life.
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