They say money makes the world go ‘round.
Do you want food? Take out your wallet.
Do you want a nice house? Prepare the post-dated checks.
Do you want a new outfit or a new phone? Swipe, swipe, swipe!
Every move we make costs money.
You might indeed have a job and a regular income, but all these expenses could mean you’re not as rich as you’d like to think.
You’d be surprised to find out that you could actually be considered poor, even when you have money!
But hey, there’s no shame in that. We’re all just out here trying to survive and wanting to make better financial decisions.
So, how do you know if you’re “poor” even when you have money?
Here are 10 ways to know:
1) Your salary goes straight to rent
Not everyone can afford to buy their own house, and that’s the harsh reality. The landlords get richer from their tenants’ leases, while the latter has to deal with the utility bills.
Most of the time, people do it out of necessity and because they have no other choice. Some rent homes near their workplace because it might make more practical sense to them.
But if rent is eating up most of your salary, then it might be time to reevaluate where you’re staying!
2) You constantly worry about finances
Let’s say you have a job. You’re hardworking and earning a regular income. But for some reason, it still doesn’t seem to be enough. If it’s not going to rent, then the rest of it is being used up by everything else.
Everyone worries about finances from time to time. But if you constantly have to adjust whenever prices go up and can barely save money, then it’s time to list what’s necessary and what’s not!
3) You’re always on a tight budget
If restless nights are all you know when the bills pile up, that’s truly alarming.
There’s nothing wrong with wanting to save, and being financially smart means knowing how to do just that. But are you saving for yourself, or are you saving for the bills?
Earning money and having enough money are two very different things.
If most of what you earn is spent on expenses, check the reasons why and if you could make the necessary changes.
The last thing you’d want is to have a negative account.
4) You don’t save money for your future
Ask yourself, “When I have extra money, where does it go?”
Any financial expert would tell you that it would be wise to have a money plan – a chart where you can track essential payments. When all of those are settled, it would also be practical to have an emergency fund or a safety net in case the unthinkable happens.
“The rule of thumb is to put away at least three to six months’ worth of expenses,” according to Wells Fargo.
5) You make risky decisions because you want fast money
Let me tell you one of the harshest truths to swallow:
There is no such thing as instant money!
Strokes of luck and fate’s favors, like winning the lottery or gambling, are exceptions, but most of the time, promises of instant money are too good to be true.
Many people become poor because they fall into alluring scams and fraudulent transactions, so always stay vigilant!
Do you want to break away from your old beliefs about money to bring more prosperity and flow to your life?
This powerful and free masterclass on prosperity with the highly acclaimed shaman Rudá Iandê might help you.
It can transform your relationship with money at the subconscious level and help you have a completely different mindset about your finances.
6) You don’t pay debts when they’re due
Everybody needs a little help sometimes, and it’s perfectly acceptable to borrow money when you’re short – just don’t forget to pay them!
Whether you loaned money from an institution or a close friend or relative, don’t forget to fulfill your obligations.
Not only is this good credit practice, but overdue payments can pile up, and you’ll be stuck dealing with late charges and penalties!
7) You don’t separate ‘wants’ from ‘needs’
Financial awareness is good to have so you don’t accumulate debts.
Can you distinguish between “wants” and “needs”? Because this is the first step to making sound financial decisions.
Allocating funds for paying rent, bills, food, and other basic needs should be the priority. Once you’ve done this, you can reward yourself with your wants.
Luxuries and discretionary items, such as a vacation, a new car, or a designer handbag, should come from leftover funds. But people become “poor” because they can’t distinguish one from the other!
8) You spoil yourself beyond your means
And if you overspend on non-essential items, you can fall into the pit of spending beyond your means! This habit can have serious consequences.
When you spend beyond what your budget allows, your debts can pile up, leading to a poor credit history. This can make it increasingly difficult to gain financial security.
9) You spend too much on the latest gadgets
One of the implicit scams in the modern world is when tech companies convince us to want the newest models of the latest gadgets.
Buying the latest and the trendiest can cost much money, and it’s not a wise investment compared to other options.
New products can be prone to glitches and may have a short life span since they are built to be replaced. It’s also a liability since the price of the tech may soon be discounted by the manufacturer as newer ones become available.
Sadly, some people can’t distinguish between a “want” and a “need” in their quest to be trendy, so they spend too much money on the latest phone or laptop.
10) You don’t have any investments
And when you become too obsessed with having the newest tech or luxury drop, you won’t have the money to invest it where it matters, like real estate properties, stocks or bonds!
These assets will appreciate rather than depreciate over time, which can give you a steady stream of income and help you grow your wealth.
But if you practice poor self-control and spend your hard-earned money on impulsive purchases, then that also leads to poor financial management.
Ultimately, money is seen as a necessary evil, enabling many of the conveniences and comforts we enjoy today.
It can be used to harm as well as benefit people, so it is important to use money responsibly and ethically.
So, join our free masterclass now to learn more about transforming your spending habits for the better. It’s never too late to get wise about money!