20. You do not want to sacrifice your comforts even temporarily. Or, you are unwilling to sacrifice at all.
“The No. 1 reason people end up poor or in some type of financial hardship is because of bad behavior,” according to Brian Fourman, personal finance blogger at Luke1428. “Success with money is only 20% head knowledge,” he said. “A person’s actions have to change in order to win, and most aren’t willing to sacrifice and do that.”
21. You are a have-it-all person.
Pauline Paquin, personal finance blogger at Reach Financial Independence, said, “People end up broke because they want too many things too soon.”
This is especially challenging for recent college grads who go from living on peanuts to having a livable paycheck but still can’t “realistically afford the new house and the new car and the nights out and the holidays abroad,” she said. This gets particularly dangerous when you start using credit to fund all those purchases, which “can cripple your future financial life,” Paquin said.
Instead of trying to have it all, Paquin advised picking one big “want” to budget for and leave the rest for the future when you’ve had a chance to build up some savings and earn a pay raise. “Living one more year like a student while saving your first paychecks can help tremendously.”
22. You are paying too much for your cellphone.
Lance Cothern of Money Manifesto said that the No. 1 reason people end up broke is that “they buy cell phones and cell phone plans they can’t afford.”
Instead of opting for a top-of-the-line smartphone and unlimited data, he said, “People should stick with cheaper phone carriers that have affordable rate plans, no contracts and lower-cost phones that you aren’t pressured to upgrade every year or two.”
This is particularly worrying among the younger generations. Whenever a new iPhone comes out, everyone seems restless and wants to get the new model of the iPhone despite it being too pricey and despite it being not a necessity.
Fine. If you are earning millions a month, go ahead and get the new iPhone every time a new one comes out, otherwise, you better check how you spend your money.
23. You spend more than you earn.
Nick Loper, founder of Side Hustle Nation, said the root cause of being broke is nearly always the same: People “spend more than they make.”
“As far as I know, that’s the only cause of bankruptcy,” Loper said.“The good news is you can tackle this from both sides of the equation,” he said. “Spend less to live within your means and work to earn more so you have more financial breathing room.”
ToughNickel. (2017). 10 Reasons Why People Are Poor: “I Have No Money!”. [online] Available at: https://toughnickel.com/personal-finance/10-reasons-why-people-are-poor-i-have-no-money- [Accessed 13 Jun. 2017].
Time.com. (2017). 23 Reasons Why You’ll Always Be Broke. [online] Available at: http://time.com/money/4320973/why-you-are-poor/ [Accessed 13 Jun. 2017].
Dachen, I. (2016). Pulse List: 14 reasons you will always remain poor. [online] Pulse.ng. Available at: http://www.pulse.ng/gist/pulse-list-14-reasons-you-will-always-remain-poor-id5799679.html [Accessed 13 Jun. 2017].