After a certain age, being poor is more than just something you’re born into; it’s a choice you have decided to live by! As Dryden once wrote, “All habits gather, by unseen degrees, as brooks make rivers, rivers run to seas.” Meaning We First Make Our Habits and Then Our Habits Make Us. Having poor/bad habits is one of the biggest reasons you might be in the financial situation you are in right now. Here’s a list of a few reasons that could be keeping you poor.
Credit Cards
It is a short-term loan that allows you to purchase and pay later. A credit card makes people spend more than cash, it not only makes you buy stuff more and at higher prices but also makes you show off and buy things on impulse. The credit card has a high rate of interest which means it is only adding up to your expenses, which as a matter of fact may change if your balance isn’t paid by the set time given by them. With its hidden terms & conditions, getting a credit card is practically getting yourself in a debt trap and ruining your credit score.
Credit cards might be something you desire but it isn’t a necessity.
Buying things, you do not need
Discretionary purchase is the formal term used to define or explain the process or act of buying things you do not need. People leave with one thing on their mind and come back with ten more, and this leads to the wastage of their own hard-earned money. People often forget to as a Why before purchasing stuff and later it gets pushed into a dark corner where it won’t come in sight for a long time.
Sticking to a list where things are ranked according to their priority and need in your life is the best way to stop yourself from going on a shopping spree when you don’t have to.
Investing with fear
Investing is definitely scary, not just for the inexperienced newcomers but also for investors who might call themselves pros. The fear is genuine no matter if you’re a pro-investor or not and this is because of the market’s nature of being volatile and unpredictable, people fear losing money.
However, if you study, pay attention and start small, with time you’re fear of investing will turn into healthy confidence. Remember investing is a form of passive income and should be done after a lot of consideration.
Buying things under peer pressure or show off
Peer pressure or the urge to show off makes people buy a lot of stuff they never really needed in the first place. Our immediate peer group has a huge influence on what and how we buy, if you have surrounded yourself with people who are rich and spoilt, you will feel an internal compelling desire to be just like them and spend more than your budget. Similarly, if you have friends that are always in competition with each other you will find yourself competing as well. Thus surrounding yourself with people that not just match your vibe but also your social status is important, moreover, these things will only affect you if you don’t have a strong mind that knows when and where to stop.
Choosing your peer group wisely is very important for not only your financial but social life as well.
Taking big loans early
Everyone once in their life takes a loan but when you take it matters a lot. Life is very unpredictable and being confident in yourself isn’t bad however being overconfident and thinking that you can pay off a huge debt/loan just because you’re earning well now isn’t always a good idea. With time responsibilities of a person increase, and the amount you can save now might not be the same in future, moreover, it takes a huge toll on your salary or income once you start with the repayment also there isn’t any flexibility which can cause you to pay more than what you owe. Thus, it’s important to think twice before taking bug loans early in life.
Loans aren’t a shortcut to getting rich, it just adds up to your stress and anxiety.
Not investing in yourself or learning new things
If you’re working hard but not on yourself, it’s all futile. Growth happens when you start working on yourself when you start learning your things when you throw away the notion of being too old to learn now when start from within.
People talk about changing the world, but won’t change themselves and when asked why? ‘I know everything’ or ‘I am already perfect’ is what people tend to reply with, yet it is important to understand that the world keeps on growing every second of the day and with every passing second you have a chance to learn something new.
Learning new things is a good way to put yourself higher on the ladder of opportunities to earn and to even earn more.
Not investing in new ventures
People fear investing in new ventures however, it is really a good way to not just explore but also learn. Investing in new things not only helps us overcome our fear but also breaks the momentum. Moreover, it can also be the big break you might be looking for or could even unleash a new interest or talent that you had but never gave much importance.
It might be a gamble but only if you don’t study and take your time to make your decision. A little delayed but well-studied investment is far better than the one made on impulse.
Conclusion
Habits are a choice of life you make for yourself. It is easy to get swayed into making poor decisions once but if you keep on repeating them and find comfort in habits as such, you are pushing not just yourself but also your upcoming generations to be poor. On average it takes 21 days to build a habit and moving out of our comfort zone is difficult but once we make the move, our mind will find the momentum it needs itself.