8 Ways to stay poor
So you want to create a stress free, financially secure life for yourself and your family? Sometimes the best way to learn new, positive habits is to realise the bad habits you could do with changing, which is exactly what these 8 ways to stay poor will help you do. Of course if you are happy to stay or become poor, follow every one of these tips and you will be well on your way.
1. Don’t pay your bills on time
Don’t pay your bills on time, all of the time, and you will be hit with late fees and charges. This is wasted money that could have otherwise been spent on essentials or saved. That means if you are in debt, you will stay in debt for even longer.
2. Buy everything on credit or interest free deals
Whether it be cars, holidays or a new tv, it’s easy to stay in the ‘poor’ cycle when you are constantly buying new things on credit, adding to your monthly debt repayment commitments. Wealthier people will always save up for something they want, before paying cash, especially when it comes to depreciating purchases.
3. Spend more than you earn
Spending more than you earn is the quickest and easiest way to ensure to stay poor, forever! Unless you change your spending habits, you will just be pushing yourself further and further into debt. It doesn’t matter how little or much of an income you make, but you will never get in front while your expenses exceed your income.
4. Wait for the perfect times before starting a budget
There will never be a perfect time to create a budget and start taking your finances seriously. Now is the best time! Wait for the perfect time and you will probably never get started.
There are more money saving tips in these articles:
- How to reduce the cost of health insurance
- How to create a simple budget
- The one trick that will help you stick to your budget
- Easy ways to save money
5. Follow what everyone else is doing
Look around and you will realise that most people are driving new cars (on a car loan), have a house full of new furniture and appliances (on finance or credit cards) and have huge houses (with mortgages that exceed what they can comfortably afford). The crowd isn’t always worth following. Wealthy people happily drive older cars that they have paid cash for, don’t feel the need to upgrade mobile phones and TVs when what they already have still works perfectly, and live in (more than likely mortgage free) houses that suit their needs. If you want to stay poor, follow the crowd.
6. Go shopping when you don’t actually need anything
Going shopping just for something to do will do nothing but tempt you to spend money on things you don’t even need, and will probably end up regretting later on. People with their finances sorted shop with a list and stick to it, plus they don’t use shopping as a recreational activity.
7. Don’t worry about small expenses
If it’s just a few dollars here or there, it doesn’t really count as spending, right? All of these small amount add up to much larger amounts, which will ultimately stop you from getting ahead financially. Keep track of every expenses for a month and you will soon see just how much money those coffees and meals out really cost you.
8. Want things that you don’t have
Buying things you can’t afford, just because you ‘want’ them is a great way to stay poor. People that don’t stay poor have the patience to wait and save up for the things they want, and are often content with the things they already have, which saves a stack of money compared with constantly ‘upgrading’ everything.