Being broke is worse than being dead, some people will tell you. In some cases, the former could just be the right perception.
When you are broke it affects your psychological wellbeing. You are always lost in thought, you are thinking of how to foot your bills, how to start a business or how to get a job. The pressure is always high to the point that negative thoughts start feeling your mind.
Most people are broke because of a couple factors:
They spend their money on liabilities over assets – Instead of using their money to create more money they spend most of it on liabilities or things that do not generate any money, such as cars, houses, vacations, or other luxury items.
They do not look at their money – Most people are afraid of money and will not track it because they have so little to spare. Looking in their bank account is something most are unwilling to do, creating more opportunities for a little money here and there to just disappear.
They focus on getting to 0 instead of getting to higher levels – It’s all about saving the money that they have and never about expanding what they have. Most people just want to get out of debt and live comfortably. By thinking this way they limit their possibilities. Everyone always shoots below where they aim; if you aim for breaking even you will shoot below that too!
They value comfort over what’s necessary – If given a choice, most people would choose to do what’s easy instead of what they know will help them out. Of course, taking control over your finances is scary, but that should not excuse a lack of control over it.
They pay for too many things – “Knowledge is Power” which means if you do not know how things work you will not have the power over them. Figure out how your taxes really work, what you really have to pay and read your contracts carefully. Do not waste your money by simply being uninformed.
They don’t keep growing – Not financially, not career-wise, and definitely not personally. Going to extra Seminars, seeking further training or taking some professional development is something most people won’t freely do. But if they never grow their skills or what they are capable of then how are they expecting to be paid more for what they do?
They give up too easily – Because of their value of comfort over everything else, these people will pull out of great opportunities at the first sign of trouble, instead of wading through the storm and getting the most out of it.
