FINANCIAL DECISIONS THAT KEEPS YOU BROKE #1

Today i want to share some findings on the most common mistakes that keep most folks broke for a very long time.
Most people have no clear direction on how to manage money. They buy things they don’t need, mortgage their way through a lot, and fail to believe in their personal ability to liberate themselves from a financial fall. These negative beliefs and attitude towards money keeps over 70% of the population in every country in the lower ranks of the economy, with a heavy dependence on their various governments.

Living paycheque to paycheque and clearly not having a plan on how to manage your finances will leave you broke, month-in month-out.

Rather than looking out for quick loans, payday loans, or searching for how to make money online or offline, you should realign your focus and place it on first changing your attitude towards money.

When you understand how to manage your current income, reshape your beliefs, and make good financial decisions, your personal net worth would be far from broke.

Here Are some Beliefs And Financial Decisions That Keep So Many People Broke:

1). I Don’t Have What It Takes:

This is probably the greatest reason many people remain broke or never succeed in life. Before they even try, they negate themselves, and go even lower in their ranks.

The belief in one’s self and ability is the first step to making your dreams come true. If you cannot visualize yourself in that status, you’d never draw up a plan to get there.

Irrespective of whatever you may have been through in life, a superior belief in one’s self than in anything else is crucial to your overall success.

If you want to stop being broke and positively shape up your finances, begin to see yourself where you want to be, and do whatever it would take to get you there.

2). Money Can’t Buy Happiness:

The second a broke person joins the band wagon of people saying money can’t buy happiness, you’d know they’ve probably given up trying, and are trying to console their weak attitude towards solving their money problems.

Also avoid listening to this same phrase from the rich. They may have it all, be able to spend on vacations, luxury cars, and may have experienced critical problems money can’t solve, but that doesn’t give them the right to stop you from changing your financial mindset.

A wealthy person who tells you money can’t buy happiness can still cry in his/her Mercedes. Where would you cry in if you had the same predicament as them? A public bus?

No matter how they place it, facing your problems from a wealthy stance trumps any other situation.

If you’re serious about changing your financial status from a broke state, you need to start realising that money can make you happier in some ways.

3). Choosing To Mortgage Rather Than Pay Cash:

When a person who’s capable of buying out a certain item chooses to pay installmentaly over a long period of time, a large financial mistake has just been made.

Mortgage-like payments are silent financial killers. They’re constant monthly reminders that you’re not the real owner of what you’re paying for (yet). This doesn’t just put your finances in a fix, but also makes it difficult for you to have some savings or investments, especially when your monthly income is low.

Knowing that you could take just a little sum of your money to make monthly payments, makes a mortgage seem stress free, but by the third month and comparing the number of your other financial obligations, you realise you having nothing left to yourself.

Another common disadvantage of mortgaging (depending on the financial institution providing it) is, the property or item you acquired could be reclaimed from you, or the interest rate could be highly increased if you default on your payments for a period of time.

For example, if you’ve being paying the mortgage on your house for the past 12 years, and defaulted heavily on several repayment terms (usually on a non-payment for three months and more), all the payments done through the years would go to waste, and you could be left without both a refund and a house.

If you’re serious about owning a property, car, or whatever you wish, buy out if you can. But if you can’t, plan a long term acquisition model that would work better for you, than mortgaging your way through it.

4). Increasing Your Standard Of Living With Every Income Rise:

With every income rise of most people, their standard of living follows suite. These individuals live in the moment with their better statuses and forget that they are always one signature away from losing their jobs.

When your income rises, the logical step is to use your additional income to increase your asset base, while you maintain your current lifestyle, or make it a little bit more modest.

If your standard of living keeps rising exponentially with every salary raise or higher income earned, you could be back to square one after many years of financial ignorance.

It is very sad but a very hearybreaking truth so many folks still remain broke blaming themselves and accepting its normal for them to remain broke.. I would continue on this topic if i feel the need to again..
Thanks guys for coming thru..

What are your thoughts on these beliefs and financial decisions that keep people broke? Let me know by leaving a comment below.