A famous song by a famous country singer has a famous line which says that one is only poor only if they choose to be. Indeed, unless you are born into a royal family or you are born into a wealthy family, it is a struggle by every person under the sun to become rich. However, there are certain things that people end up doing or certain behaviors they end up picking as they grow up that ultimately hinder their chances of becoming wealthy.
As a person who desires Financial freedom, it is imperative to know some of these habits and consciously avoid falling in their traps so that you can have increased chances of becoming rich. If you have been trying to make money, but it doesn't seem as if you're making any progress, here are some things you could be doing wrong and which if you continue doing, and you can expect to remain poor for the rest of your life.
You are trapped in the debt loop:
First of all, it is important to state that it is normal for people to have debts. Most people borrow sensibly to invest the money or overcome certain financial situations in life. However, you get into the Debt loop you are unable to live your life without incurring debts. It means that you have debts every now and then and the saddest thing is that you are trying to pay up the debts using other debts. It is the story of digging another hole to fill up a hole. If this defines your financial life, then just know that it will be very difficult for you to attain your financial freedom.
You are not serious about clearing bigger debts:
The number one tip to stay away from poverty is to avoid getting into debt. However, when you have debts, it is imperative that you come up with a clear plan on how to pay them. A common mistake that most people make when they're trying to improve their financial situations is to focus on the smaller debts at the expense of the larger debts. It should be noted that the bigger debts will continue to accrue interest over time and they may ultimately very expensive if you take a long time to clear them. Therefore, you should make it a habit to try and clear the bigger debts before you focus on the smaller debts.
You feel you have no control:
It is sad to see how people resign themselves to their financial fate simply because they think there's nothing they can do about the situation. This kind of designation is counterproductive when you want to become financially independent. Your brain will stop working and you will stop thinking about creative ways you can use to get out of the financial mess that you are in. You should always know at any given time that you are where you are because of the choices you made and if you can start making better choices in a different way, then you can potentially improve your financial situation. Therefore, the thought of not being in control should never be entertained by anyone desiring to attain financial independence. Do this and you will remain poor for the rest of your life.
You don’t ask for financial advice:
It is a fact that most of the educational systems around the world teach very little when it comes to financial management. A good chunk of the population is therefore left on their own to figure out how to create money and how to grow their wealth. As a result, those who are not keen or those who don't have the consciousness to be learning about finances usually end up in very miserable financial situations. Most of the poor people are poor not because they don't have money, but because they don't have the information on how to accumulate wealth. Therefore, one way of defeating poverty and becoming rich is to upgrade your financial education. Don't be afraid to seek help from the experts even if it means that you have to pay it. This will save you a lot of time and it will make you a lot of money in the long run.
Poor money behavior:
There is a group of people who earn decent incomes but are still poor. They cannot account for the money they get. This is simply because of certain poor money habits they have formed over the years. If you're the kind of guy who, any extra cash that lands on their hands finally finds a way to the casino site, then you are gambling away your riches. Again if you are kind of person who does not have any financial plan of whatever nature and they are waiting to spend instinctively when they get the money, then you cannot expand to spend the rest of your life. It is an essential to learn how to manage money.
Over-Reliance on credit card:
Millions upon millions of people around the world rely on credit cards to make regular purchases. In as much as it is a good idea to have credit card facilities to afford stuff, you should always know that credit cards are debts you will have to pay for some day. It is a fact that they come with some conveniences you won't find another mode of payment but you should always have in mind that every time you swipe your credit card, you are increasing the amount of money you owe. Therefore, strive as much as you possibly can to not rely on the credit cards. If possible, you should go for debit cards instead of having a stack of credit cards in your purse.
Compromising today for tomorrow:
So you've heard people say that you only live once and therefore, you are justified to spend as much as you can today simply because you don't know if you'll be around tomorrow. These are the kind of careless statements that make people poor. It is true that you only live once, but this is not a justification for you not to plan for the future. If this is your way of life, then you are slowly and surely driving your way towards abject poverty and you will never know how it feels to be rich.