You must have questioned why the wealthy appear to be growing wealthier while the underprivileged appear to be getting poorer. Perhaps you share the belief that the wealthy have unfair advantages over the poor, which only serves to increase their wealth. The truth is that the typical person is not poor because he is unfortunate or unlucky, nor is he poor because he has the most severe restrictions and insurmountable issues in the universe.
You must put all sentiments aside and be prepared to face the truth about life, about what you are doing and aren’t doing if you want to understand why you’re still poor or struggling financially.
To see some of these obstacles that have prevented you from achieving financial freedom and what you can do to overcome them, I want you to read carefully while maintaining your composure and an open mind. It’s not my intention to make you feel awful about yourself, but if you’re reading this, it’s time to take financial responsibility and make a conscious effort to do things you might not have otherwise done for yourself. So read on while letting your mind and body rest.
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However, you should be aware that there are numerous reasons why people continue to live in poverty
But in this article, I will articulate some of those vital reasons that are chief among several others.
What's in this guide?
Reasons you are poor
Here are 10 chief reasons why one is poor and might remain poor.
1. Fear
Fear kills, fear hinders, and believe me when I say that one of the main reasons you are poor and may remain poor is because fear has severely limited your capacity to make courageous decisions and carry them through.
Have you ever observed that you prefer to be safe? Or do you prefer to wait until everything is ideal or prepared before moving forward? The perfect day or timing will never arrive, that is a fact. Therefore, a person who has allowed himself to be constrained by fear of the unknown, fear of failure, worry of what others may think, or fear of missing out will always be impoverished. You must learn how to behave despite your fear if you’re going to break the ice.
You must develop your fear-control skills. Get out of your comfortable spot. Your finances and other important parts of your life appear to be dead or, in some cases, already dying since the comfort zone is a dead zone. But it’s here. Don’t give up hope. If you can overcome your worries, make that brave promise now, and act accordingly, there is yet hope.
2. Hate or dislike for the rich
I’ve discovered that a lot of the poor have this habit. They never show appreciation for successful people. They think that anybody who is wealthy is somehow crooked or involved in bad organisations or plans. They, therefore view them very skeptically.
I want you to accept the reality that a big proportion of the wealthy worked very hard to get their wealth, and you should respect them for it. Admire them, find out how they got to where they are, and try to emulate them. You draw to yourself what you value or love. What you despise also flees from you.
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3. Association with the wrong network
According to a proverb, a companion of the wealthy will also be wealthy, and a companion of the poor will also be poor. Let’s now take a closer look at your friends. Are they the poor folks in society?
It’s a sign that you might stay poor if you just hang out with other poor people. Never accept the average. To become wealthy, you must surround yourself with people who are already wealthy or who at the very least have the potential to become so.
Your network is so crucial to who you are today and what you can become tomorrow. Therefore, I need you to think carefully and consider your connection. You might simply be poor because of this.
4. Ignorance of how finance works
Ever ponder how the financial system operates? Are you literate in finances? You can end up always being in need if you don’t learn the basics of finance and how money works since your funds are not managed properly.
Get financial education, learn about investing, budgeting, and the various options accessible. The most crucial thing is to understand the distinction between assets and liabilities. And how you might spend your money on investing in assets rather than on things that depreciate.
5 Ponzi schemes
Ponzi schemes are neither reliable ways to achieve financial independence nor are they investment opportunities. I don’t want you to believe their fake testimonies of people who benefited financially from taking part in it. These quick-money schemes have been around for a while, and new ones constantly popping up.
But I want you to know that no matter how it’s presented, there’s nothing fresh about it. I’d rather that you put your money into tried-and-true investing portfolios, which might take some time. Keep in mind that long-lasting wealth necessitates patience and diligence.
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6. Spending above your means
It’s general knowledge that most individuals lead unassuming lives while being poor on average. Spending over your means is a sign that despite your income, you are still in poverty.
You can become wealthy with sound financial management and strong self-control, especially when you start to think about investments and, as a result, cut back on your expenditures to make room for prudent savings and investing.
7. You lack financial management
Without good financial management, every money you receive becomes a surplus. Poor people are always prone to impulse buying and spending money on less important things. This happens because they lack financial management.
You should rather plan and budget your finances and be disciplined to follow the budget. Also, financial management has to do with your having a proper understanding of your finances in other to make the most of it and plan for the future
8. Lack of motivation or hopelessness
One of the greatest factors you may find among successful people is that motivation, or the willingness to become rich at all costs. Motivation is the key to becoming rich. You must be a go-getter, one that has the “I can do it” mentality
You find people who are poor have a habit of being discouraged, hopeless, and clueless about minute problems and challenges. Problems are a necessary part of our everyday life. So when you become discouraged at seeming setbacks, you find yourself avoiding problems rather than facing them head-on to solve them.
Rich people are always motivated. Chose to be motivated and inspired to move on, despite the challenges.
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9. The wrong habits
We are what we continually or repeatedly do, and so success or poverty is not a sudden occurrence, but a habit, a way of life, or a thinking pattern.
Winning is a habit. Failure is a habit. Building wealth is also a habit while becoming poor is a habit too.
Rich people have formed the habit of delayed gratification, the habit of spending less and saving more, and the habit of going the extra mile, diligence, and dedication to a cause. So when you check yourself, and you find these habits missing, it might leave you with a clue as to why your finances have always been negative.
10. Lack of specialized skill or education
One of the requirements for building great wealth and fortune is the acquisition of a specialized skill or a professional education.
Most people are poor and may remain so because the skill they have now does not demand any huge financial return.
You might be poor because the skill you have now is undervalued, and in most cases not needed or relevant.
You must seek to get a special skill or a professional education. With this, you can increase your income, and leave the circle of those whose worth is always contested. This means you become among the special ones.
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Conclusion
When it comes to personal finance, the choice becomes yours to make, whether you are satisfied with where you’re now or not.
There is no one to blame if you’re poor, and neither will you be justified by blaming some series of unfortunate circumstances far beyond your control. Learn to face the fact, examine yourself from the above exposition and see what you haven’t done right. Get back on track and make a resolve to never allow anything to come to set you back as you take absolute control of your finances, in the end, you become rich.
