4 Main Money Mistakes That Keep You Poor
These are personal life lessons I learned
Are you still receiving paychecks and are you happy with what you are receiving? did you know that almost 85% of people in the world all live paycheck to paycheck? trust me, from where I came from, I know what it’s like to have a paycheck that doesn’t even make ends meet like you’re not even living paycheck to paycheck at all.
Paychecks are barely making you survive at this point and I know with all the changes and challenges we all are facing in the world right now, it's so hard for our paychecks to hold us through all these hard times, it’s like not even being able to go out because your credit cards are topped out and your bank account is still literal zero, even if you wanted to, you got nowhere to pull from, so I’m talking to you like a brother, like your family at this point and I’m telling you being on both ends of the spectrum and being able to see both ends.
A lot of the stuff that kept me on the poor side was me doing it to myself, today I’m going to show you exactly what it is that you do to yourself that keeps you to the point that you never have enough money.
1. LIVING AT HOME
People love the comfort and most people I think it’s like 60 or 70 of adults still live within the 20-mile radius of their parents and still live in the same town that they grew up in, what you need to understand is that there is a world of opportunities out there and moving, exploring, meeting new people and networking can open those opportunities and set you up in the right place for you to take them.
Now, a lot of people call this luck, I think it’s just the simple right time, right place, I feel if you position yourself in that place you too could be lucky, where one of those opportunities, one of those people that you network with, the more you are expanding and work outside your comfort zone, the more opportunities you have to explore.
So living with your parents until you’re 30 it’s not saving you money, it’s making you comfortable.
2. ACCUMULATED DEBTS
Your debt is crippling, it’s expensive, now try and understand this, this is how debt works, a bank lends you money, and then it charges you a percentage interest and that’s how they make a profit off the money they lend to you.
The problem here is that debt that you have is probably crazy expensive, take credit card debt, for example, this is the debt that most Americans have, well some cards will charge you up to 30 percent interest which is crazy, it is crippling, so in other words, if you have a thousand dollars that you owe a credit card, you’re paying about three hundred dollars just on interest, versus if you would have been smarter and you found that debt somewhere else and then say that the bank only charged you three percent that same thousand dollars that you borrowed, you’re only paying thirty dollars, that’s the difference between cheap debt and expensive debt.
So if you are full of expensive debt like maxed out credit cards, a lot of your money is just going to pay off that interest so you need to look at all the debt you have, be it your student loans, your credit card, your home or your car, etc
The main point here is that you have to look at all these and see what percentage they’re charging you then if any of them are high you need to restructure that into something more affordable.
3. FINANCIALLY ILLITERATE
If I told you right now that I really can’t read, nobody ever taught me how to read, like it’s not a thing in my country honestly, I guarantee you that 95 of you just went like literacy is such a common trait that we take it for the norm as if everybody should just know how to read, however, financial literacy which is the understanding of money, how it works, how to produce it, how to save it and how to manage it seems like this far-fetched idea that only this wall street financial dude can ever grasp.
Look here, the point is that, if you don’t even understand how your money is moving, you’re never gonna have enough of it, you’re not the one controlling the money, the money’s controlling you.
4. YOU BLAME OTHERS FOR YOUR FUTURE
Now, if you think that a president or a politician or a political party is just gonna come in here and save us all, you might as well believe in Santa Claus.
Look, the idea that somebody else like the government can come in and save us all has been tried and failed probably for the past century, what you need to understand is that the only person that can control your outcome and your future is you, so don’t blame, complain or wait for anybody else because what’s gonna happen is that you’re going to stay on the sidelines while your bank account is being drained and somebody else is looking out for their future.
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