8 Great Tips To Achieve Financial Upliftments | Business Ideas

2:00 am glamour ann 0 Comments

Glamour tips that keep you
Every day I always wondered why people are poor, not just that why people who earn more than average income always struggle financially. These are the things I see when I was growing up, I hate to borrow and that is why I feel so sad when I see people who borrow and borrow to the extent they no longer have any limit at all, you see them borrow when is not necessary, they borrow at any given time. So I decided to make research on the reasons most people remain poor. 

And here are my findings.

1. You don't pay yourself first
You see, the main reason why people are poor is that they don't pay themselves first. I have found out that most people don't pay themselves first and that is why they remain poor. They struggle in debt. And that is why they pay with credit. What I mean by paying yourself first is that when you receive your salary for the month, you put a portion of your salary into a savings account before using the rest of the money in your expenses. When I was growing up I saw the biggest financial stagnation on my mum because she doesn't pay herself first, do you know why because she does not make savings a priority, even when she's paid well. When you are making savings a priority, you will do it automatically each pay period and you will stick with it.


In this particular aspect, I see most of us make grievous mistake by spending much on rent or a mortgage, which is the biggest reason people struggle financially, you see, you will see people who make above average incomes but end up spending almost everything on rent, you should try to keep housing cost under 20 percent of your income.

3. You put today's happiness before future financial needs
People who should be in good financial shape may not be, often because the decisions they make are not aligned with their future financial needs. You see, making conscious decisions that require some thought about the future is not satisfying at the moment as choosing something that they perceive to have an immediate positive effect on happiness.

This is the biggest reasons people stay poor. You know it is easy to hope that there is money left over at the end of the month, but many times our behavior get on the way and which is bad spending habits. As soon as you get paid pay automating bills, saving and invest as well, this will cushion the blow when emergencies come up, and you will have something for future or retirement.

5. You don't separate wants from needs
You see, generally, I see most people use the word 'need' for almost everything they purchase, which cause them to actually believe they 'have' to spend the money they suppose to save. This mentality is what keeps us down financially. You have to separate your wants from your needs if you want to grow financially.

I found out that economic disadvantage plays a big role why some people are poor but the truth is that is not the only thing holding people back. The other things that hold people back are they might find themselves in crises because they have repeatedly underinvested in areas of longterm benefits like education, investment, savings, and overinvested in areas like luxury products, clothes, shoes.

7. You buy depreciating assets
You see, the main reason people become poor is that they focus their mind on buying depreciating assets like cars, etc,. because of that, they have little resources to build wealth which will now make them live on salary to salary. Now how can you fix this problem if you get one? Focus on buying appreciating assets like stocks, lands, and real estate, which would grow over time and eventually give you more resources so that you no longer live in poverty.

Actually, the root cause of being broke is because people spend more than they make because that is the only cause of bankruptcy. I have good news for you, which is, you spend less to live within your means and work to earn more so you have more financial breathing space.

0 comments: