8 reasons for financial failure
Financial difficulties? Even if many people give everyone the impression that they have created everything. They are working, living in a beautiful house, driving a beautiful car, but living between payday and payday. These are the 8 main causes of poverty in the first world.
Life within your power
There is no chance to get rid of it. If you spend more money than you earn, then you have to get the extra money from somewhere, which almost always means borrowing money, also called a credit purchase. All these have a price, which is called interest. If you are accustomed to buying things on credit, the interest you have to pay in your life will increase your wealth. Interest is sometimes called useless money, because all the interest you pay has no money to show.
Think about what you might spend for all these interests. It is almost painful to even think about it, but if you want to avoid poverty, you need to pull your head out of the sand and face reality. Your financial future depends on it.
Keep up with Jones
Some people try to keep up with their peers while spending money. This compulsion will cost you a lot of money. Exercising a certain self-image can severely affect your financial situation and will pay a high price when you stop working. You may think that your peers are doing a good job financially and can’t even afford themselves, but things you don’t know may surprise you. They may try their best to repay the debt. Even if they live within the ability to fund their lifestyle, this does not mean you have to keep up with them.
Don’t be a happy person, don’t let others down, don’t take the correct course of action to live according to your own situation, otherwise you will be happier.
Consumer debt or stupid debt is often referred to as borrowing to buy things. Today is spending tomorrow’s income. Debtors usually ignore the situation of the so-called things they buy on credit. The value of their newly acquired property is shorter than the time they bought it. A key factor to note is: The money owed to the project always exceeds the value of the project. No one will fall into a debt-poverty cycle, not just people with lower incomes. In fact, middle-income people can easily fall into this trap.
The commercialism of the 20th century brought a lot of prosperity. It provides jobs and creates countless businesses, but it has another aspect. The first poverty in the world is due to fanatical satisfaction with things. People are not only satisfied with what they need, but they also want more. All of this must be paid, and this money could have been used to build a financial foundation for their future.
Addiction is very expensive; just ask any smoker. You don’t need to be a mathematician to figure out how much a smoker would pay. It is estimated to exceed 100 New Zealand dollars per week. This is equivalent to 5 Grand Prix per year and 50 Grand Prix per ten years. No wonder many smokers are broken. The same is true for people who are addicted to alcohol and smoking.
Financial illiteracy is the main cause of financial poverty. It is not only the low-income people who are financially illiterate. High-income people may also feel guilty for this. You will hear the stories of some successful sportsmen who made millions of dollars in their heyday but went bankrupt after retirement. It is important to save money and invest in the highest income years so that you are prepared when the income is no longer good.
It is irresponsible to not be responsible for your own finances. They will give all kinds of excuses, why they didn’t add kiwi or contributed. Excuses such as “You can’t take everything with you”, “I might die before retirement” or “I’m still young”. People who are irresponsible for their finances are often irresponsible in other aspects of life. Whether you are in a relationship, owning a house or a car, or saving for retirement, you have to take responsibility. This is what separates men from boys.
There is no doubt that poor company is the main reason why many people live in poverty. Some people say: “You are the average of the five people you spend most of your time with”, so it is necessary to check who you are with and ask whether their attitudes and opinions on finance affect your money habits. In order to grow, you need people’s help and encouragement. Sometimes this means separating from the bad company. Some people find it difficult, but in the long run, it is worth it.