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6 Unhealthy Habits Gently Driving You to Poverty

6 Unhealthy Habits Gently Driving You to Poverty

Personal Finance

6 Unhealthy Habits Gently Driving You to Poverty

Unfortunately, not many people are good decision makers when it comes to financial matters. They are in a constant cycle of poverty and their future looks bleak. They often wonder why they are always broke before the month ends despite earning a decent income.

It is no stigma to wear rags; the disgrace is in continuing to wear them;” a quote shared by Muriel Strode in 1903 highlighting the power we have in deciding how we want to live. While may not choose how we are born, we sure have a choice on how we want to live.

Unfortunately, not many people are good decision makers when it comes to financial matters. They are in a constant cycle of poverty and their future looks bleak. They often wonder why they are always broke before the month ends despite earning a decent income.

While they may not be able to point yourself as the problem, their bad habits are the major cause as to why they are financially struggling and why they will remain poor forever.

Below are 6 habits explaining why they are still poor and will probably remain poor:

Constantly upgrading their lifestyle

For one to invest, you first have to save. Unfortunately, poor people don’t save, any increase in their income is directed to spending on material things. They like spending more than they have mostly to satisfy “unknown spectators.” They do these with the need to keep up appearances and competing with people. This is a sure way to fall into deep and everlasting poverty with no hopes of escaping. Unfortunately, these people will end up borrowing to keep up with their lifestyle hence falling into debt holes.

Any additional income should always be directed to 3 things, savings, existing investments or debt repayment. Cut on the unnecessary expenses, live lean without the need of satisfying the eyes of people you want to impress while focussing on the future.

Read: 5 Hidden Charges You Need to Know and Your Bank Does not Tell You

The have blurred or lack vision

They lack vision and only see as far the length of their nose. And because of this, they don’t see the need for setting goals. And because goals are attached to budgets, they also do not do that. With this unhealthy habit, they tend to be broke all the time with absolutely nothing to save for the future because their income is not purposefully assigned to anything tangible.

Once you have a vision, then it is easy to start working on it by writing it down into actionable steps. Pen down your budget as this will help you know what your priorities are, your needs and wants. If you want to avoid the pitfalls of poverty in the near future, then you have to forsake and sacrifice some of the present pleasures in your budget.

Gambling with their little and hard earned cash

A report by Geopoll survey indicates that Kenya has the highest number of youths betting in Sub-Sahara at around 54%. The report also suggested that Kenyan youth spend the most on gambling at any given time in Africa, most on sports betting.

According to Tom Corley, the co-author behind “Rich Habits, Poor Habits,” there’s nothing like getting rich quick. Building wealth takes time and it does not happen in an instance. Unfortunately, most gamblers are delusional into thinking that they can strike it rich without going through the due process. Of all the billionaires in the world, none has been documented attributing their success from gambling.

The average youth in Kenya uses up to US$50 per month for gambling; an amount that can be used to save and invest and build wealth over time. And because it’s dependent on luck, most are ill-advised into using their savings to increase their chances hence digging a hole leading straight into poverty.

Spending time with toxic people

The people you spend time with matter a lot. They will either build or break you. Toxic people will always make you spend more than you earn by tagging you to binge parties you had not planned and borrow your money to spend on their unwarranted lifestyle because they also live for the present.

These kinds of people complain about everything and everyone but not themselves are always miserable. Remember, misery loves company.

You cannot divert away from the road of poverty by associating yourself with toxic people. They will always pull you down. Replace them with positive minded people who are will support and embrace responsible personal financial practices. At one point, you will simply have to change your inner circle of friends.

You are dependent on one stream of income

If you keep all of your eggs in one basket, chances are high you are you have a direct ticket to poverty. There are two types of income – active and passive. Active income is when you work and paid for it, if you don’t work, you don’t get paid, more like your 8-5 job; while passive income is payment is not directly tied to active work, like stock portfolio dividends, interests, rental income etc.

Read: 8 Business Ideas You Can Easily Launch Today While Still Keeping Your Day Job

While you may be earning a lot, it is never recommended to rely on that one income with the case that you suddenly lose a job. Most people have single string holding them from becoming poor because they only have one stream of income.

Having additional income will not only to cushion you from financial storms, but it will also help you to pay off any debt faster and have more money into your savings and investments. Start building a side hustle or freelancing from the comfort of your home.

You simply don’t read

For some unknown reason, there’s a direct correlation between poor people and their lack of reading. Well, the word “poor” already explains why the reason is no longer unknown. It has been said before, “poor people have big TVs, while rich people have big libraries.” Reading is one of the habits of the most successful people. They read books, publications, attend seminars and workshops; they strive to get more knowledge, something that other people don’t do.

People who struggled financially spend most of their time watching TV and only read what is on Twitter and Facebook or anything they want to spend money on.

While there is not a single route to creating wealth, the habits above are a sure way of trapping yourself into debt while gently digging your hole into poverty. It starts with making a decision and putting action into it. A journey of a thousand miles starts with one step.

Image Credit: Getty Images

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