10 Money Mistakes Habits That Keep You Poor

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As cliche as it may seem it is an indisputable fact that money is so simple yet so complicated. In this world divided along many boundaries; race, state boundaries, gender among others, there generally two types of people; people who view money from a position of strength and those that view money from a position of weakness.The belief that if someone had more money he/she would be more happy, get out of debt, have more to save or even have enough to give back ensures poverty.

© frenta - Fotolia.com
© frenta – Fotolia.com

Basically, money does not solve money problems.Money problems are behavioral. Wishing for more money to solve your problems is viewing money from a perspective of weakness. People who solve their own problems so that they can have more money view money from a position of strength. This is essential for anyone who seeks to be rich and have sustainable wealth creation in the long run.There are therefore several habitual money mistakes that keep many poor as discussed below:

 

1. A LIFESTYLE THAT IS NOT SUSTAINABLE

Inflation makes a lifestyle go higher and higher year after year. Planning a sustainable lifestyle is essential in ensuring your expenses on lifestyle do not exceed your ability gauging on your income level. This ensures that you have more for more important things while still maintaining a life balance. Overcoming the initial stage of attitude and lifestyles is basically the hard part.

 

2. GAMBLING ON YOUR FUTURE

Having a reliable source of income to some is a guarantee to financial security and an escape from poverty. Income put into other investments such as stocks provides more financial stability. In creating wealth you just cannot invest and fail to be engaged in the process. Bestowing all responsibility as in this case to the stock broker is a sure way to reap the least benefit.

 

3. COMFORT WHILE HAVING A STAGNANT INCOME

This mistake ensures the same money problems year after year. Seeking to have company with people that are your wealth creation support group is essential. People that can add value unto and help you look beyond the single income. A stagnant income is risky and could render you poor in case of a retrenchment.

 

4. THE BLAME GAME

It is a common habit to blame other people or factors for our financial problems. The simplest way to get over this is to allow yourself to only get upset with the things within our control such as our spending that prevents us from saving. Cutting on the budget spending and cutting out credit cards go a long way in ensuring you have more money. Take responsibility.

5. FAILING ON THE RULE SPEND LESS THAN YOU EARN

Smart saving begins at the point where spending is minimized to the maximum. The habit of working harder making more money to buy more things makes many poor. Money should be a tool to a better life. This begins with monitoring finances to ensure you are maximizing on savings. Knowing where one’s money comes from and goes is fundamental to staying in complete control.

© sarapulsar38 - Fotolia.com
© sarapulsar38 – Fotolia.com

6. BORROWING TO CONSUME

Debt is not always a bad thing. When people get loans to make an investment that brings in money then that is smart. Good debt allows you to acquire assets. Bad debt on the other hand allows you to acquire things you think you need but which in real sense are making you poorer. Bad debt should always be avoided if anyone wants to be rich. Jim Collins has a great articles on how to think about money in which he says,” stop thinking about what your money can buy and start thinking about what your money can earn.”

 

7. BELIEF THAT ONE KNOWS EVERYTHING THAT THERE IS TO KNOW ABOUT MONEY

This habit inhibits the urge to search for new knowledge. Any person that wants to be rich, is rich or wants to remain rich has a responsibility to keep acquiring knowledge to get assets. Refining the skills to create wealth and having updated knowledge on investments in this ever changing world. The biggest resource hence is time and it should be put to maximum use.

 

8. HAVING NO REASON ON WHY ONE WANTS TO MAKE MONEY

Connecting with why you need to make money ensures one avoids making uninformed risks on money especially with making investments in unfamiliar sectors. Having an answer to what happens when you get the target is fundamental. It is also very essential to have goals as person and seek a balance to avoid only pursuing money. You can be the richest and yet the poorest as an individual due to loneliness. Understanding that money is not the life that you have always wanted brings into perspective your values. These values ensure you are not influenced by other people’s opinions.

 

9. HAVING A HOW MUCH PER MONTH MENTALITY

Paying on a monthly basis can actually load you with heavy financial burden coupled up with interest rates. Knowledge of the fixed total cost and now having a smart saving plan for that thing you want to buy ensures you can even negotiate for a lower cost. This in the long run saves you a lot of money and is hence cheaper.

 

10. IGNORING THAT YOU HAVE A MONEY PROBLEM

People do accumulate debt and it is normal in life that at some point you will be in debt. This however is no excuse to burying your head in the sand when faced with the debt. Writing your debts down and facing them head on is the effective way. Acknowledge and work yourself out of debt.Even if you have thought about money in a certain way all your life, you can change it in an instant. Start thinking about total cost of things, stop blaming others for money mistakes and get in control of your own finances. Money is a tool. It can be a source of security making one rich or a source of ruin causing one to be poor. It is a matter of choice.

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