5 Habits That Will Keep You Poor Even With A Good Income

5 Habits That Will Keep You Poor | Image Source: nextmashup.com

Human desires are ever endless. We crave a lot of things that may be considered either good or bad for us, and so, rush to quench our urge as soon as we can afford them.

This is the behaviour of billions of people around the world. Their lives are centred around satisfying their wants and not focusing on what they truly need. This attitude to money may put a short-term smile on our faces when we’ve gotten the items we so much covet, but strikes us with the reality of our actions when we’re unable to pay for the most important things in our lives.

Have you ever paused to figure out why you’re always broke? Where all your money constantly goes to? And why your bank account is mostly red in about two weeks after you’ve received your salary or paid yourself?

If you find that you’re deep in this situation and can’t figure out exactly what’s happening to your finances, here are 5 habits that keep you poor even with a good income:

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See Also: 7 Sure Ways To Cut Your Small Business Expenses And Increase Your Profit

 

1). Not Keeping Track Of Your Expenses:

Poor attention to where and how a lot of people spend their money keeps their pockets empty most of the time. This largely happens because they spend a lot of money on a wide variety of really small things, which unconsciously eats deep into their finances overtime, since they’re largely unnoticeable.

To keep yourself from going broke and always having enough saved for the rainy days or emergencies, it is important you start keeping records of where and how your money is spent.

 

2). Confusing Your Wants With Your Needs:

Misplaced priorities is another reason people remain broke or poor. Rather than buying what they need, they go for what they want, and in the process, end up with much lesser to save.

Buying a $20,000 car when all you have in the bank is $30,000 is a no-brainer. Your motive to purchase shows that you need a car, and as such, having only $30,000 should only be put forward to purchasing a car that costs no more than $8,000.

This way, you can satisfy the need to own a car and still have enough money in the bank.

See Also: 5 Things You Must Know If You’re Starting A Business Under The Age Of 30

 

3). Always Purchasing The Latest Electronic Gadget:

Twice a year, your favourite mobile phone brand or gadget company releases a brand new version of your existing device with amazing new features to entice you to upgrade. Automobile companies do the same yearly, with the newer versions of their cars looking more amazing than their previous versions.

These yearly introductions are engineered to motivate the public to keep parting with their money for a presumed increment in their social class.

If you’re deep into constantly upgrading your gadgets, automobiles, or more to their latest versions anytime they’re announced, breaking out of your social class will remain difficult.

 

4). Poor Or No Budgeting:

While closely tracking your expenses is a good step to ensure you don’t go broke, not tying your entire expenditure around a budget from the onset will make you lose a lot more money than you could have saved.

Before you start to closely monitor your expenses, first set a budget and do everything possible to stick to it. This way, you’re certain that a reckless spending spree would always be confined to a cash limit you’ve set for yourself.

See Also: 5 Life-Changing Skills You Can Learn Even If You’re Broke

 

5). Increasing Your Expenditure As Your Income Increases:

When most people start a earn a higher income, they usually move into a better house, buy a nicer car, buy more expensive clothes, take a lot of vacations, and put their children in more expensive schools, amongst others.

While raising your standard of living as your income increases is not a bad thing to do, blowing it out of proportion may leave you with whatever you were usually left with.

If you’re someday going to break out of the rat race and get onto the fast track, you’d need to build a better saving and investing culture. This means improving your standard of living by just a fragment and having more to set aside, when your income increases.

 

What are your thoughts on these 5 habits that will keep you poor even if you earn a good income? Let me know by leaving a comment below.

 

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