Good evening guys. Have you guys ever wondered why you are broke?.. Check this points out
- When you spend too much on housing:- Housing costs, absolutely, to start with rentage or mortage but also many include property taxes, insurances, utilities repairs and maintenance. Housing costs do normally constitute the largest component of your expenditure, so its jussive and essential to keep as low as possible
- When you spend too much on car:- like housing worth, can consume far too much monthly not income. New cars lose worth as soon as they roll off lot. I’d say the smart strategy is to buy high quality used vehicles to avoid losing the big bite of the initial depreciation. Based on research 48% of rich people purchased used cars, typically a 1-2 year old vehicle coming off a lease. And these wealthy individuals then kept their cars for a long time
- When you create habits by association:- if you want to adopt good money habits, associate with individuals who possess positive habits and pull back from those who doubt. Think long and hard about how your friends and the people you associate with daily affect your spending and savings habits and if you surround yourself with good spenders, you’ll likely become one too.
- When you rely on credit cards to finance your lifestyle:- when you spend every dime you make, apparently, you are not saving. What’s worse, spending more than you make forces you into debt to maintain your standard of living. If you fall in this habit, you are essentially using future earnings o finance your current lifestyle.
- When you spend on a lark:- spontaneous spending is driven by emotions and a lack of self-control, spontaneous spending is a subconscious act, so the remedy is awareness. Awareness turns on the conscious part of your mind which can overpower your subconscious
- When you gamble too much:- 70% of poor people gambled on the lottery every week, and 50% gambled on sports every week. The odds of winning the nettings re 1 in 350millions. Accumulating wealth is an ongoing process not something that happens overnight, save the money that you might ordinarily spend playing the lottery or gambling on sports, slow and steady always wins the financial fitness race.
- When you spend on entertainment:- spend nothing more than 8% of your monthly net income on entertainment. Entertainment includes vacations, recreational travel, hotels, theater, toys, all sorts of games, bars, restaurants, entertainment equipment such as TVs and speakers, most who struggle financially spend far more than 10% on entertainment
- When you don’t save:- self made millionaires make a habit of savings. The more you an save at an early age, the more wealth you’ll accumulate. 95% of the self made millionaires in my study developed the habit of saving 25% of their income during their pre millionaire years.
- When you don’t track your spending:- You may find you are paying for things you do not use, knowing where your money goes gives you control over your finances, for instance, subscriptions or club membership. If you’re not tracking what you spend you’ll never know you can purchase something for less money.
- When you don’t bargain shop:- Accumulating wealth is a simple process. It can be herculean to break deeply ingrained money habits, but it is the key to financial independence after all, the last thing somebody want is to ask family members or friends for money, it is advisable to develop good money habits that will put you in control of your life. Cuz, it’s empowering so you need to spend less than you make and save the difference.
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