There’s a huge chance that you are reading this because you are broke. And that you’re reading this because you want to get out of that situation. Believe me, it’s very hard to be broke. But being broke isn’t a hopeless situation. It’s better to be broke than being poor. You see, I personally believe that being broke is different from being poor. Being broke is temporary while being poor is permanent.
Now, what are the reasons why we are broke? There are tons of reasons why a person becomes broke. But in today’s #AlfredDaily Episode (a series of daily videos about personal finance, check it out!), let’s just talk about 5 well-known reasons:
1.) You are lazy.
Lazy people live to exist. They have no dreams, if they do, they are vague or impractical. It’s hard to think of simple, practical, and well-planned goals and dreams. So, they just sit there, grab a bowl of popcorn and watch their colleagues play the game of wealth and become rich!
2.) The only thing you know about money is how to spend it.
Let us admit, it’s hard to save and invest, but it feels awesome to spend. It gives us the sense that we made it! That we are already rich! But the sad reality is that we are broke. We are a good-looking, well-dressed, iPhone user, well-travelled, well-fed broke person.
We have this financially destructive habit of thinking what luxurious item to buy next on our next payday. We think that spending is the number one way to release stress or to reward ourselves. Then, we wonder why we are living from paycheck to paycheck. Next time, try to read a self-development or personal finance book. Or go for a run. It adds real value to your life compared to uncontrolled spending.
3.) You spend too much time partying and playing games.
We all have that friend who spends more time partying or playing video games than working or doing activities for self-improvement and wealth accumulation. They are the people who always use the “YOLO” reasoning. And yes, Sir! They are the ones who are always broke.
There’s nothing wrong attending parties or playing video games (I play FIFA too), but if it is the activity that’s consuming the majority of your time and money, then it is a bad habit that’s causing you to be dead broke.
4.) You set your own traps.
You are addicted to debt. You see your parents, friends, children, co-workers, churchmates, colleagues as an extension of your wallet. Sure, spending money that you haven’t earned yet might be tempting, but you need to have self-control. If you are buried deeply in debt and you have no concrete plan to pay it all off, you’ll be broke forever.
5.) You live as if you have 500 years remaining in your life.
Ah, the most common mentality of Filipinos, short-term and instant gratification mentality. You have no foresight about your future. Or maybe, you are too afraid or lazy to think and plan for your future. Stop living a life as if you are so certain that you will still see the sun tomorrow! Develop a “death bed” mentality! Live as if today is your last day. Why? Because if today is your last day, what would you rather choose, a cup of Starbucks coffee or that life insurance policy that will give your family death benefits?
You see, if we will just consider today as our last day, our priorities will become different. Only what matters will remain.
Remember, being broke is temporary. If you want to get out of your current situation, you need to hustle, you need to learn how to save and invest, you need to invest time only in things that will add value in your life, you need to avoid the debt trap, and you need to treat today as if it is your last.
Your children don’t deserve to be broke. Your spouse doesn’t deserve to be broke. Your parents don’t deserve to be broke. You don’t deserve to be broke!