Do you know you can be making money and still end up poor? Think of your savings; is that balance increasing steadily … wait, is there even a savings balance?
If you’re still skeptical, think about your financial progress, your financial graph curve for the last 6 months.
If its direction is upwards, good, read on through as prevention has always been better than cure.
Otherwise, if yours is a downward curve or a flat line, worry not, you’re about to find why.
1. Having The Mindset of a Poor Person
“If it’s not for COVID-19, I wouldn’t be this broke.” “There’s nothing I can do, even other people are at home doing nothing.” I’m sure you’ve also heard such statements by people who want to justify why they’re badly off.
These statements, if you think about them, only promote laziness and ultimately poverty. They’re telling you it’s okay to slack off and wait for things to be better, or to wait for help.
This way of thinking is dangerous as these poor-minded statements are birthed from your thoughts, and your thoughts influence your reality which forms your way of life.
Solution: Stay away from mediocre thoughts. Focus on thoughts that help you find a solution. Change your point of view towards tricky situations and you’ll be amazed. Also, you might hear such statements from close friends or your kin. If you can’t spread positivity to them, try to keep off such topics.
2. Lack of a Financial Plan
Most of the time people just live for the moment, however, not planning ahead and just assuming things will be okay or by then, you’ll have made it in life, is part of self-deception.
If you share conversations with older folks, they’ll tell you that their lives could have been much better if they’d have had a financially stable plan. The problem with being young is that you don’t know how it feels like to be old.
Solution: Your future might be full of prosperity or full of nightmares depending. It is wise to not gamble with your future by creating plan A and B and not gamble your future. Don’t just think about it. Writing it down is more effective.
3. Failure To Follow Your Budget | Financial Plans
Many a time we write down a budget but deviate from it a few days later. As human beings, we tend to forget quite a lot but this shouldn’t be an excuse.
What was the purpose of writing a plan in the first place? What were the goals you wanted to achieve? You must realize that failure to obey your plan is like wanting to pass exams but not reading up for them.
Failing to plan is planning to fail.Benjamin Franklin
Solution: To achieve your target goals, you should form a habit of revising and updating your plan oftenly. Set a reminder if you have to or download a budgeting app to help you out.
4. Not Saving Money
For most who are struggling financially, making money is not the issue; the problem is keeping the money. You should not let yourself become like an ATM machine i.e. money in, money out. No, keep it.
If you don’t accumulate money, what will happen when you get an emergency? Also your future plans for success will remain nothing more than mere fantasies.
Most people save money with a target in mind, only to withdraw it prematurely. If it’s not for a good reason, then you’re stealing from yourself.
Solution: The simplest way to save is deduct 10% of any of your income and deposit it into your savings. Do not overstrain or try to save too much lest you’ll soon give up and go back to thy old ways.
5. Not Increasing Your Value
If your knowledge or skill in your craft or job is still the same 6 months later, then you won’t have increased your value, and your income will probably not have increased and bills will still frustrate you.
Note: Accumulating experiences can be confused with increase in value but that’s different.
Have you heard of politicians, CEOs and other successful people graduating from a university? You wonder with all that money, isn’t there something better to do other than going back to school?
Sooner or later, you hear the person has been appointed in a new post. From politician to ambassador, from a high performing employee to a manager; just because of a 6-month leadership and managerial course.
When you gain more knowledge or perfect your craft, you end up delivering excellent work and you not only get recognized, you get rewarded as well.
If you’re a sole proprietor, say, a salesman, learn and research on where to find better goods and at even lower prices. Don’t just stick to that one supplier.
Solution: Train yourself to be better than you are currently as this will give you a more competitive advantage.
6. Waiting For Luck
At some point in life, everyone has wished/hoped/prayed for something, which is mostly beyond their control, to succeed as they desire. If you were “lucky” enough, it did. Otherwise, you got disappointed.
Luck will mostly come to you when you are prepared that is when you have increased your value, when you are persistent and not a quitter, when you’re improving yourself and seeking betterment.
Luck will certainly NOT come to you if you’re lazy, slacking off, not in control and mostly when chances are not in your favor.
For example, let’s look at gambling and sports betting. When you gamble, the chances of profiting are always against you and in favor of the betting company, it is arranged so since it’s a business, like any other, that has been set up to make profits not losses.
Yes, there are those who win big at times. But question: How many entrepreneurs or even rich folks have you ever heard claim to have built their businesses or wealth from bet winnings? So what happens to the winners, that they always end up poor?
Solution: Luck is when preparation meets opportunity.
Of course, there are many ways you can end up destitute, i.e. calamities brought about by natural disasters, theft or bankruptcy. But for those of you who can control it, why not take charge and escape poverty?