10 Money Habits That Keep You Poor

Do you know why most of the world is stuck in poor or lower middle income and very few are rich? They have a wrong attitude towards money and are not good at using money.

Considering many people trapped in the lower income levels, they have common characteristics and attitudes. They are completely opposite directions on the road to wealth.

So such attitudes, habits and behaviors keep you in poverty forever. If you want to lift yourself out of poverty, you have to change your attitudes and behaviors.

If you can’t manage your income read the article “4 Steps Strategy to Manage Your Income Wisely“. If you think you have the characteristics of becoming a millionaire, you should not read this article but the article “10 Signs That You Will Definitely Become a Millionaire“.

The list in this article is created based on the facts taken from the lives of the poor. If you have these traits or attitudes, you will remain poor. These are the reasons for being poor, even if you have a good income.

By identifying these habits and attitudes and trying to defeat them, you will have the opportunity to rise above poverty.

10 Money Habits That Keep You Poor

01. Not Keeping Records of Income and Expenses

One of the main habits that can be seen in the poor is to act without any understanding of their income and expenses. Keeping a record of your income and expenses is very important.

You don’t need to know accounting for this. Here you have to calculate the monetary expenses. Record all daily expenses for a month. Then add it all up and calculate your monthly expenses.

Then add up all your income. Maybe you have several sources of income. Or the salary from your job may be your only income.

Then divide your total expenses by your total income and multiply by 100. That value should be less than 75% of the maximum. If you can maintain that value below 50%, it is worth it.

If your income expenditure ratio exceeds 80%, it is not good. Also, if it exceeds 100%, it can be termed as negative income expenditure ratio.

02. Prioritize Buying Things You don’t Need

If you are someone who spends a lot of money on unnecessary things, chances of you becoming rich are very low. Unnecessary expenses will lead you to extreme impoverishment.

First of all, you should have a clear understanding of your income and expenses. Without that nothing can be done. Once you have prepared an expense report as mentioned in the first point, identify unnecessary expenses that can be cut.

There is a very popular saying in this regard. That is, “If you buy things you don’t need, soon you will have to sell things you need“. This is a quote from Warren Buffett.

If such a wealthy person says not to spend on unnecessary things, there is something to think about. So be more frugal in spending money.

03. Taking Too Much Loans

Borrowing too much puts you in a lower position than you are. But people don’t accept it. According to numerical theories, inflation and interest rates can be compared to determine whether borrowing is good or bad.

But you have to remember that financial institutions do not introduce schemes that benefit you. During the repayment period of the loan, you pay an unnecessary amount in interest. That’s money you can spend on other worthwhile things.

It is for this reason that taking loans for investment is considered good. However, it is more valuable if you can invest without taking a loan.

However, borrowing money for consumer spending is very foolish. There is no return to you. It becomes zero after the consumption requirement is fulfilled.

But for that you have to pay loan installments with huge interest for a long time. It should be done entirely from your single income. So never take loans for consumption purposes.

04. Not Prepared for Future Uncertainties

People who spend their entire income and take additional loans are not able to think about future uncertainties. But it is very important to prepare for future uncertainties.

People sometimes take loans to face such various contingencies. But if you have prepared in the past, you will be able to face the problems of the present more strongly.

It is for this reason that it is said that there is no financial stability. So a person without financial stability is forever poor. So try to build stability with the income you receive.

05. Not Trying to Build an Extra Income

Poor people are stuck in poverty because they don’t focus on building multiple sources of income. A person who relies on only one source of income does not become rich.

So if you are a person who lives without thinking about a new source of income, that is also a reason for your poverty. A person trying to get out of poverty tries to create several sources of income.

06. You Have No Purpose for The Future

Only a person who dreams of becoming rich will achieve fortune. Many poor people do not have such beautiful dreams in life. Even if they have dreams, they don’t work for them.

People who have a major goal in life and make a lot of sacrifices for it are the ones who overcome poverty and become rich in life.

Think about the purpose of your life and what sacrifices you will make for it. If you don’t have such a purpose in your life, that is one of the main reasons why you are poor.

07. Just Waiting for Everything To Arrive

Some people are waiting for someone to bring them money, bring them luck, bring them success. Otherwise, they wait for some luck to come their way.

Fortune is like a treasure. It is hidden deep in the earth until you work hard to dig it out. No one comes from heaven and casts a spell to make your life successful.

You can make your life successful by what you do. And nothing comes to you for free, you have to work hard for everything.

08. Blaming Others for Your Own Poverty

A habit of poor people is to blame others for their poverty. They think that they are poor because their parents are poor, and that they cannot become rich because they did not receive any inheritance from their parents.

A person who thinks like this, even if he receives an inheritance from his parents, he destroys it and does not develop it. Such people are miserable.

If not, they blame the society that they are poor because of society’s mistake. Otherwise, they blame the government for their poverty. And they expect compensation from the government.

Even if the government gives a subsidy, they think that it is a compensation that the government must pay.

Your parents, government or society are not responsible for your poverty. If there are rich people in the same society ruled by the same government in which you are poor, the problem lies within you.

You are poor not because of their fault but because of your own attitude. Get rid of that immature attitude, get rid of that poor mentality, and you will be able to get rid of poverty.

09. Believing That Everything Happens On Luck

These people think that if something comes, it is due to luck. If they don’t get something, they see it as bad luck. You plant chili seeds and don’t expect an apple tree.

Your reward is determined by what you do. If you do nothing, you will get nothing, if you work a little, you will get a small reward, if you work hard for something, you will get a great reward.

Spending your time on the belief that luck will reward you will not make you rich, it will only make you old without realizing it. Such habits and attitudes will keep you forever poor.

10. The Nature of Hating The Rich

If you see Robin Hood as a hero, you have a strong hatred for rich people. Also you will never get rich. Because you think that the rich should give to the poor.

What will the rich do to your poverty? They can give you a job. You will not prosper as long as they help you with money.

The poor live until Robin Hood steals. But in a day without Robin Hood, those poor people have no life, no way to survive.

Therefore, robbing the rich and feeding the poor is not a sustainable solution. The poor should be removed from the society. It can only be done if everyone earns money. You will not grow and your society will not grow as long as you wait for freebies.