If someone walked straight up to you and told you that you would remain broke
forever what would your reaction be for a fleeting moment you may want to punch
them in the face but if not you might be interested in finding out how they came
to that conclusion today i'm going to be that person in this video i will share
with you seven reasons you will be broke forever and if you're new to the channel
then hit the subscribe button below for more life changing content reason number
one you have no financial goals the first reason why you're likely to remain
broke forever is that you have no financial goals you believe in going
with the flow but sadly this flow is only leading you to loser town the thing
is you won't become wealthy by merely dreaming about it you'll have to put in
the time and effort needed to change your present financial situation for the
better without a financial compass that leads you in the right direction all the
hard work you put in will go to waste financial goals can be segmented in two
long term and short term goals the long term goals are those that take a
relatively extended period of time to achieve say quitting your job and
traveling the world or owning a big home on the other hand short-term goals are
achievable within a shorter timeline and more often with less strain perhaps you
want to clear your student loans or start saving for your emergency fund
having defined your financial goals in this manner you can now plan out how
much energy you must put into achieving each one of these milestones this is why
setting goals is vital for your success whichever timeline you're working with
these goals will provide you a roadmap for reaching your final destination
which is financial freedom your financial goals will also play a
significant role in holding you accountable if you have a clear vision
of where you want to be in the next couple of years for instance you will
avoid any obstacles that might hold you back you can also use your goals to
track your progress if for example one of your main goals was to save five
thousand dollars by the end of the year you can use this to track how you're
faring you will know when you're outdoing yourself and you'll also be
aware when you're slacking and need to pull up your efforts
reason number two you care about what your peers possess
let's be honest it can be tempting to compare yourself to your peers
especially when it comes to money but did you know that comparison is a
thief of joy and that this could be the reason why you're still trapped in the
poverty cycle if you constantly obsess about how much money is in your friend's
bank account you're robbing yourself of the time you could use to make more
money and make your bank fuller simply put it will suck the lifeblood out of
you how well for one this tendency can trap you into making unnecessary
purchases which eventually digs a big hole in your wallet also caring about
what your peers possess makes you susceptible to unnecessary lifestyle
inflation lifestyle inflation refers to a financial situation where an
individual increases their standard of living after a rise in income and sadly
this is more prevalent amongst broke individuals when you put undue pressure
on yourself to live a life that resembles someone else's you lose sight
of your own life's goals you begin to pursue someone else's dream and by the
time you snap out of it it could be too late
most broke people have a bad habit of keeping up with their peers you'll find
them racking up debts to get to the same level as their friends which is
detrimental if you want to become rich it's high time you ditched the
competition mentality and ran your race instead of competing with your peers set
goals that align with your individual circumstances whether it's buying a home
a fancy car or living in a fancy neighborhood do so when your finances
allow you to because if you're the type of person that can't take their eyes off
of other people's achievements then financial freedom isn't for you
reason number three you don't invest here's a plain truth the main reason why
most people are broke is that they have no investments either it could be
because they don't have enough money to invest or simply because they fear
taking risks whatever your reason is time you push yourself off the cliff
because the truth is you will never attain financial freedom if you fail to
invest there are no two ways about it escaping the broke life is all about
mastering good money habits and investing is the greatest of them all
unlike most income sources investing allows your money to work for you and
with minimal efforts from your end throw into the mix a benefit of compound
interest and you realize that investing is worth the time and effort once you
invest in starting capital your money will start accruing interest and the
earlier you start the more you will reap and here's the cherry on top investing
doesn't have to be risky if you have a lower risk appetite consider safer
investments like setting up a retirement fund with your employer this way you'll
be saving a certain amount of your monthly income and when the time comes
to down your work tools your money will multiply big time other alternatives are
peer-to-peer lending platforms real estate certificates of deposit and high
interest savings accounts inasmuch as it isn't a get rich quick scheme it is a
progressive one channeling your money towards income producing assets is a
surefire way of accumulating wealth what most people don't realize is that you
don't have to be a millionaire to invest there are investment opportunities that
accommodate the varying levels of investors investing platforms like
peer-to-peer lending sites allow you to invest with as low as 50
and still get to earn interest of up to 12 every year compared to savings
accounts that practically don't attract any interest investing is the real deal
reason number four you let your emotions control your spending are you an
emotional person if yes do you allow your emotions to hold your spending
tendencies on a leash also yes i'm sorry to disappoint you but
you're likely to remain broke forever the thing is managing your money hinges
on making sober financial decisions but if you're the type of person that will
spend hundreds of dollars on drinks because you had a bad day at work you're
setting yourself up for failure if you want to become rich you have to learn
how to separate your emotions from your financial life whether good or bad quit
making impulsive financial decisions and learn to think through things doing so
will save you from making losses in delicate markets like forex and the
overall stock market because as much as we hate to admit it most of the things
we buy even stocks correlate with some deep-seated feelings it could be anger
fear excitement distress or even curiosity cut the cord that links your
money to your emotions and your life will never be the same reason number
five succumbing to a gambling habit gambling is the biggest enemy of your
finances let's not sugarcoat it gambling is a disease a disease that will
squirrel away your wealth mercilessly and leave it for the dogs if unchecked
gambling can snowball into a lingering addiction that hinders any slight effort
you make to escape poverty so how will this habit make you broke forever the
first reason is that gambling will blow up all your savings see gambling creates
an illusion of easy money and after your first two wins it will be impossible to
stop you'll thrive on the hope that you might win big the next time which is
never the case the truth is that gambling is not a source of income
technically you place bets on uncertain events using valuable items as leverage
then hope that the odds stack up in your favor as enticing as the sounds betting
is a total waste of financial resources the truth is most gambling companies
know how to play with your mind they will trick you into believing that
you're winning money when in the real sense you're losing it for instance you
may think that you won an impressive 60 dollars after placing twenty dollar bets
on five fantasy football leagues yet it's only one of them that yielded a
profit in such a case you didn't win sixty dollars you lost forty dollars and
this is one secret that gambling companies won't tell you the solution of
winning is what leads people to exhaust their savings and start racking up debts
big gambling platforms like online casinos can gobble up thousands of
dollars leaving you with unpaid bills and debts to be paid here's some
shocking statistics while the gambling industry rakes in an estimated 500
billion dollars a year the average gambler loses 500 a month to the
gambling market unless you want to remain broke you would better alienate
yourself from this dangerous habit reason number six hanging around other
broke people there's a common saying that goes something like this birds of
the same feather flock together as a result hanging around negative nancy and
brooke bryan is the easiest path to poverty and failure similarly hanging
around wealthy and successful people will help you tread down the same
direction and you may wonder why this is the case well it turns out the people
you hang around with influence your day-to-day habits as a result if you
associate with people who have good financial habits you'll instinctively
find yourself applying these habits in your life but if you associate with
pessimistic people that think investing is a scam your chances of investing are
slim to none the thing is broke people have a certain mindset that keeps them
broke most of them are pessimistic with paycheck to paycheck and rarely have
value to add to anyone's life if you dwell in such an environment you start
to absorb negative habits and traits that hinder your success broke people
will talk you out of great business ideas and they will make you think that
everyone is broke broken struggling reason number seven spending more than
you make the final reason why you will remain broke forever is that you spend
more than you make overspending is a notorious culprit for being broke it is
the main reason why broke people find it impossible to save and why they
eventually gravitate towards debt overspending is the cause of max credit
cards buyer's remorse and lifestyle inflation what's worse is that curbing
this habit isn't a straightforward feat but it is possible you can approach this
problem in two ways the first one is to get additional sources of income to
supplement the one that you have now this way you'll be able to level your
monthly spending on what you make the second way of tackling overspending is
tracking your expenses and living below your means
choose to live a life that you can support without straining and still
leaves some room for building your nest egg budgeting is an excellent place to
start budgeting will help you curb impulsive spending while steering you in
the right direction financially instead of splurging your paycheck on everything
your heart desires draft a budget that prioritizes the essentials for effective
budgeting you can consult budgeting apps like mint and pocket guard among other
budgeting tools also stop hanging around with individuals that waste money you'll
see the difference immediately hey it looks like youtube thinks this next
video is the one that will change your financial life forever give it a watch
and let's see if they're right