Finances & Money

3 Reasons Why You’ll Always Be Broke

trouser-pockets-1439412_640You are probably thinking of ways to make money, and you choose to start your own business. You begin to look for partners and clients through a Corporation & Business Entity Search and become busy setting appointments or preparing presentations. All of these are positive signs that you are likely to become successful in the long run.

However, there’s no guaranty that all your hard work will pay off if you fail to manage other aspects of your life that can affect your future endeavors. There are many reasons for you to become successful and financially independent, but be aware that there are also reasons why you’ll always be broke.

Today, we will cover the reasons that  will keep you broke. Let’s get started!

You’re Always Buying Expensive Items

Every day, you buy things for your daily needs. Even if you don’t usually spend lots of money for luxury and leisure, your daily needs will determine your net worth.

Your food, shelter, and clothing are the basic needs you attend to everyday. These are small things, which may seem insignificant, but they can affect your cash flow management.

When you analyze your monthly budget carefully, you will be surprised that your daily needs such as food, the internet, electricity, water, fuel, and miscellaneous expenses consume a huge portion of your budget even if you have chosen cheaper options. Therefore, a slight difference in the price of each item you buy will have big financial implications for you in the long run.

You’re not Saving any Money

It’s hard to believe that many people can’t save money, but are able to buy things that they don’t need. It’s true that consumerism today is very high, but there are still many people who manage to set aside allocation for savings. You don’t have to become rich to be able to save some money. What you should do is to change your approach to managing your personal finances.

Perhaps, the reason why you are not able to save money is because you put savings as the last priority in your budgeting, and you only save when you have excess. If you set a specific percentage of your money and deposit it first to your bank account before anything else, the rest can be easily subdivided.

You Keep Borrowing Money

There are many ways to borrow money. You can borrow money from your friends, from lending institutions, or through your credit cards, but there is only one way to pay your debt – to earn more than what you need.

If you borrow money but your earnings are just enough for all your needs, there is no way you can pay your debt other than borrowing money again to pay for your other debt until you end up only paying the interest.

Strive to pay your debt without borrowing money from other sources to pay it. Increasing your income is a different story, but this is the only way you can pay your debt. Once you have paid all your debt, stop borrowing money.

Conclusion

Many people have beautiful dreams with carefully crafted plans. Still, most of them are not able to achieve their goals. Instead, they end up broke.

The above reasons are common mistakes that are neglected by many people, and if taken seriously, they can be avoided. To become financially independent, you should know first how to avoid being broke.

Author’s Bio:

Carl Aamodt is a super-connector with Towering SEO and OutreachMama, who helps businesses find their audience online through outreach, partnerships, and networking. He frequently writes about the latest advancements in digital marketing, and focuses his efforts on developing customized blogger outreach plans depending upon the industry and competition.

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