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Money Habits That Keep You Poor And How To Avoid Them

I have witnessed poverty and also some riches. My friend, you better be rich! Poverty is nothing to be desired. This is what you should avoid in all good ways. Why do I want you to be rich? You have to be prosperous to have more options. The rich have more options in life, while the poor have fewer options.

Over the years, however, I can say from my experience and observation that the poor and the rich behave and behave differently. The two people have different attitudes, behaviors, and habits. Identifying these character contrasts and applying them properly to your life will be invaluable if you want to get rich.

There is no way to be rich if you continue to act the same way you were poor in the first place.

Therefore, in this article I have used my decades of experience and observation on the behavioral characteristics of the poor and the rich. Read these 20 habits of the poor below and learn what you need to change or start doing differently to get rich.

1. You do not deliberately seek financial knowledge.

Wealth creation is an art and knowledge must be deliberately learned and constantly updated. You should always look for knowledge that can legally help you increase your earnings. Good financial knowledge brings money and its lack keeps you poor. A good financial knowledge that you need to have is to know the difference between an asset and a liability and to strive to acquire assets, especially to value assets. You need to consciously develop and improve your financial knowledge. The poor don’t, and so are poor. It is not flexible to learn new things and modern trends in wealth creation.

2. You don’t save.

Many poor people are not saved. Spending as much as they earn or earn. Those who are trying to save on the smallest financial problems they suffer. According to Robert Kiyosaki, “the rich invest first and then spend what is left, while the poor go first and those who stay.” Once spent, before thinking about investing, most of the time there is nothing left to invest because human needs are innumerable and inexhaustible. It is recommended to save at least 10 percent of your income. This is usually the first step towards wealth creation.

3. You do not invest.

Save, but don’t stop saving, invest too. Make money with your savings. Don’t let your money get idle in your savings account and write it down. You can transfer this money to interest-bearing accounts, such as the money market account and treasury accounts. Don’t wait until you have more money to invest. Use the secret of composition. The little money invested in overtime can help you get big riches.

One of the safest ways to invest is to put your money in a mutual fund or buy treasury accounts.

4. You are trying to impress others.

The poor always try to impress people by buying expensive goods that they cannot afford. Many of them just take on life and feel great. It is common in Africa. We throw parties just to impress people. We live uncomfortable just to feel each other. I’ve seen people spend millions just to do a wedding ceremony, and after the wedding they still pay the debt incurred during the wedding. You don’t have to impress anyone in life. Be yourself. Plan and hope for the best. It offers sacrifices in the present that will give you a better future. Don’t borrow your future for current pleasure.

5. You don’t have a financial plan.

Without a financial plan, you will hardly make any conscious effort to make financial progress in your life. You need to know your current financial statement and plan for it each time. Your financial plan helps you know your immediate, medium and long-term financial goals so that you can work towards them. It also helps you check your financial goals and how you can achieve them. It helps you plan important milestones and expenses in your life such as marriage, education, college education, and retirement. Every phase of life has unique financial challenges, but if you set them, you will set financial goals that will help you be ready for them.

6. You have no emergency funds.

Emergencies such as job losses, accidents, serious illness and, if you do not have an emergency fund, can lead to financial disasters and problems such as loans, premature liquidation of your investments, etc. However, an emergency fund serves as a cushion. for any of these emergencies. An emergency fund is money that is suspended in a secure and easily accessible account for the major financial emergencies in your life. According to Andy Bryon, you should save three months ‘living if you are a two-income family and six months’ living if you are a single-income family.

7. You spent without a budget.

You can never save money if you don’t budget. The reason is that human needs are insatiable. There are always expenses to raise all the money available. And if you haven’t set your budget for the month, week, or day, you’ll easily give up the emotional pressure you’ll go through. When it comes to money, our emotions are not a good ally. If you listen to your emotions all the time, you’re spending both the things you need and the things you don’t need, and you’re likely to lose money. You will probably also be guilty if you always listen to your emotions. With a budget, though, you can control your spending and tame your emotions.

8. You receive financial advice from inexperienced people.

If you are not losing money, it is one of the keys to building wealth. Financial advice from inexperienced people can make you vulnerable to the wrong investment moves that can make you lose money. Family, friends and co-workers and even people who sell financial products can offer you multiple financial tips at once or to order. You can listen to them, but you are not pressured to do what cannot help you achieve your financial goals. Even if the person is a certified financial manager, he does not feel that he knows everything about business and investment. If you receive financial advice from someone, you should also do your research to confirm the advice and see if it is safe, profitable, and meets your financial goals, otherwise you could risk losing your money.

9. You subscribe to quick schemes to get rich.

In recent years, many Nigerians have lost millions of naira in the face of various ponzi schemes. It was caused by greed and lack of financial knowledge.

There is no legal or easy way to make money. Just keep it in the back of your mind. No matter how fast promoters of rich schemes, costly creation requires time, patience and hard work.

10. You believe in luck.

There is nothing like luck when it comes to money. Many people sit and do nothing, while others pray to God all day long to send them money or get rich. Things don’t work out that way. Prayer only works after you have worked.

Happiness doesn’t just happen. When there is happiness, it is deliberately created by positioning oneself and doing hard work. It is often quoted that Thomas Jefferson said, ” I firmly believe in happiness and have found that the more I work, the happier I become. ‘ Is true. Roll up your sleeves and start working. Work hard and smart in what you do, save and invest and over time you will get rich.

11. You procrastinate.

Don’t wait until you have more money to invest. Don’t wait to start the new business. There is never a perfect time to do something in life. Start saving now, start investing now and try the new business now. Fear of failure should not stop you from trying new things. It is better to try to fail than never to try. The poor always have an excuse not to try. They always procrastinate, but the rich are quiet. The rich look for opportunities and take advantage of them. When exhibitors are finally ready to try big things, the opportunity train must have left the train station.

12. Buy the impulse.

You don’t have to buy everything you want, even if you have the money to buy it. The poor always buy on impulse and repent especially after buying. Even if you have extra cash, you can save it and invest it in a way that gives you more money for the proverbial rainy day. The effective way to control impulse buying is to always draw up a budget and try to meet your budget. He also decides not to be controlled by emotional buying. An effective way to control emotional buying is to resolve to buy yourself anything immediately when you see it. Let at least a day or even a week (depending on the cost you buy) pass before you buy something you see. If you’re still interested in buying the item in a week’s time, you probably can’t control your emotions.

13. You do not have multiple streams of income.

I’ve never seen a rich man with a single source of income, but most poor people have only one source of income. Relying on a single source of income such as a job is very risky. What if you lose your job or current source of income? Multiple streams of income eliminate this risk to a large extent and make you even richer and have more peace of mind. Building a second or multiple streams of income does not mean leaving all 9 to 5 jobs. There are many ways to do this. You can do several part-time tasks. What about your money on treasury bills or even on the stock market? What about starting a part-time business and hiring someone to run it while doing a day job? There are many business ideas you can invest in. You have no excuse for not creating multiple streams of income.

14. You live above your means.

The easiest test to know if you are building wealth is to see if you are spending more than you are earning or earning. You can never be rich if your expenses are always higher than your income. The key to a positive income statement is to live within your reach. If you are not comfortable with your current lifestyle and want to raise your standard of living, you need to work smarter and smarter to increase your income. The two ways to live within your reach are to spend less or make more money.

15. You do not buy valued assets.

The rich buy depreciating assets such as electronics, cars and appliances, while the rich buy more valued assets such as stocks, treasury bills, bonds, real estate. Depreciation of assets loses their value over time and causes you to spend even more money to maintain it, but the valuation of assets increases over time and provides even more income.

16. You are on debt and do not prioritize your payment.

Most of the poor are borrowers. They are borrowed to provide personal needs and requirements. The rich barely lend. They are only borrowed to invest. Although the rich lend to invest, they do so carefully and seek loans at the lowest interest rates and commit to repaying the loans as soon as possible. However, most poor people are always in debt and do not try to deliberately repay that debt.

Debt is a setback in the journey to wealth. It pulls you back with interest rates, especially if it matches. I’ve seen people struggle with debt, but instead of freeing themselves, they get more debt by taking on more.

Getting out of debt is not very easy. It takes determination, sacrifice and dedication. The first step to getting out of debt is to stop paying off the loans. If your debt is due to your credit card, you must first use a credit card until you have paid off your debt. Don’t get out of a hole digging into the hole anymore.

Pay off all your debt with the highest interest rate. Reduce your spending and stop receiving more loans. Overtime, you will be happier, have more peace of mind and be better prepared to build wealth.

17. Most of your friends are poor people.

The poor always spend time with poor people. It is very bad and it is what hinders your progress in life and prevents you from getting rich.

Many of the major financial steps I’ve taken over the years that have made me more prosperous have been influenced by some of the people I was associated with. You can’t spend time with rich or poor people and not shake their attitude towards you a little bit.

I don’t mean he should despise the poor. I’m just saying you don’t have to have them just like your friends. Get close to rich people. Try to reach out to wealthy people so you can learn from them. There is always something you can learn from them. Your passion, knowledge, attitude and ideas fall to you.

18. Your thoughts are always negative and pessimistic.

Pessimism is one of the biggest inhibitors of personal success, and wealth creation is no exception.

The poor always find reasons why a business or investment idea will not succeed. It’s good to make excuses. Apologies didn’t help anyone achieve anything. They only limit you.

The rich are good at finding an obstacle or difficulty on the path to success. The rich are always positive people.

19. You are stingy.

The worst people I’ve ever met are poor people. Most of the super-rich people in our world are generous people. Think Bill Gates and other super rich people, they are always willing to give them away. They go with millions of dollars every year to help the underprivileged.

The more you think about the needs of others, the more you strive to increase your ability to provide for the needs of others. However, if you only think about yourself, your needs, and your family, you will only get what is enough to meet that level of need. However, if you strive to meet the needs of many people, God will give you ideas and resources that will help you meet the needs of many people.

20. You don’t tithe.

This issue has been a controversial topic lately. Still, I believe in that. Getting 10% of your income from God is one of the ways we express our gratitude to God that has allowed us to earn 100% in the first place. Attract God’s blessings through your efforts.

What is your opinion on this article? Let us know in the comments section below.