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Financial Mistakes That Will Keep You Poor

There is really no magic attached to becoming rich or staying broke. Wealth, just like everything else in life is governed by rules and if you play by the rules there is nothing on earth that can stop you from becoming rich. Here are financial mistakes that you’re probably making that could keep you poor:

Excessive Spending

Now before you argue that you’re working hard to enjoy the best things in life, remember that there are countless athletes who went from earning millions in a week to becoming broke. This is because of lack of financial management. People tend to do this because they have bad habits or they’re trying to act rich and show the world they have made it.

Living Paycheck to Paycheck

This expression describes someone who can’t meet his/her financial needs if he has no job. Those living paycheck to paycheck devote their income to expenses. This kind of living leaves you with zero investment funds, any unforeseen problem could quickly turn into a disaster because you’re always not prepared.

Impulse Borrowing

Always borrowing to fund things that are not essential could keep you poor. Borrowing to fund a lavish lifestyle, borrowing to organise a party etc.

Depending on A Single Source of Income

Its general knowledge that one cannot become wealthy from paid employment. This is because your worth is always determined by your employer and there is an income cap that you may never exceed. Don’t ever fall into the trap of believing that you can become rich and stay rich from one source of income.

Investing in get-rich quick schemes

Putting your money in investment vehicles you don’t understand will keep you poor. Often these schemes and packages are scams that target young adults to dupe them of their money.  

By: Isaac Newton

Content created and supplied by: DrayB (via Opera News )

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