5 Brutal Reasons Why You Are Still Poor? - Warren Buffett

If you are also scrambling in your life to meet your expenses then in this article you are going to know the secrets of successful people.

Have you ever wondered why you are still struggling financially in your life despite all your efforts? Well, it can be a tough question, but the answer certainly lies in your daily habits, mindset, interests, risk appetite, and decision making ability. 

5 Brutal Reasons Why You Are Still Poor? (image credit: google, Canva)

Now, in this article we are going to provide you some valid reasons why you are still poor while others who have the same skill but they are more successful. 

Here are 5 brutal reasons why you're still poor and how you can fix these-

1. You spend more than what you earn

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” – Will Rogers

This is the most crucial reason why most people stay poor. Always remember, It is not about how extravagant you are, but how much you keep your money to utilize some productive things. 

Your lifestyle inflation, continuous dependable purchases, and depending on paycheck to paycheck can destroy even a high income. 

How to Fix It?

• Make sure you create a zero based budget.
• Track your financial expenses.
• Try to practice delayed gratification. Wait at least 24 hours before making some non essential purchases.

2. You don't have emergency funds

“If you don’t have an emergency fund, you don’t have a financial plan. You have hope.” – Dave Ramsey

Suppose you are living a happy life, suddenly an untoward incident happens. You reach the hospital and they say that this amount of money is required to make you medically fit. 

At this time, if you would have saved the emergency fund then you can easily meet your medical expenditure. But imagine what would happen if you didn't not accumulated this emergency fund. The scenario would have totally changed. 

So, always remember that an unexpected job loss, medical bills, or any misfortune in your life can detail your finances. Hence, it is prejudicial to have an emergency fund that you can utilize in your dire needs. 

How to Fix It?

• Start with just a predetermined figure of the amount that you want to save monthly as an emergency fund. 
• Always keep it in a high interest savings account. 
• Try to automate this monthly deposit, no matter how small this fund is. 

3. Do you invest your money?

“You will never reach financial freedom by saving alone. Investing is the only way to grow wealth.” – Robert Kiyosaki

Robert Kiyosaki the author of the world famous book ‘Rich Dad Poor Dad’ gives more importance on learning and investing in your skills and multiple income streams. If you are putting your money in your savings accounts hoping to earn 3-4% as an interest, but on the other hand due to inflation which clocks around 8-9% per year is robbing you of your money silently. 

So, most of the people always fear and also say that investing is very risky, and have the misconception that it is a gamble. But, most of the successful have common thought that not investing is the biggest risk of all. 

How to fix it?

• If you have surplus funds then start with a monthly SIP (systematic Investment Plan) in mutual funds or index funds.
• Keep learning continuously, as many successful people around the world always try to learn continuously it does not matter in which phase of age they are.
• If you have enough time then some books that are written by successful people. As they have shared their strategies how they become successful and how they are able to achieve financial freedom.
  
  

4. You Blame Other People for Your Current Situation

“The moment you take responsibility for everything in your life is the moment you gain the power to change anything in your life.” – Hal Elrod

Some people always blame others for their misfortune and their grave situation. They keep accusing the government, economy, their parents, job, etc. You are just wasting your energy on these things. Be a responsible person, whatever is occurring in your life you are solely accountable for all the things. 

How to Fix it?

• Never ever say “I can’t” change your mindset and say “How can I?
• Focus on what you can control like your spending, mindset, habits, skills, ets.
• Replace the victim mindset with a growth mindset.

5. You Don’t Invest in Yourself

“The best investment you can make is in yourself.” – Warren Buffett

Always remember, if you are not learning, you are not earning. There are many people who generally stop growing after school. These people avoid books, courses, or mentorship. Ironically, this is the biggest mistake these people make, as they would have not only learnt the experiences of the successful people through their books but also they would have developed the rich mindset. 

How to fix it?

• Read at least one book on personality development, personal growth, and money.
• Participate in seminars or take online courses to upgrade your skills.
• Encircle yourself with people who challenge and inspire you.

Key Takeaways:

• If you are poor then it is more about your habits and mindset rather than income. 
• Spending extravagantly, avoiding investing, and not taking the responsibility for your financial condition will keep you broke.
• Being poor is often more about mindset and habits than income.
• Overspending, avoiding investing, and blaming others will keep you broke.
• Commence with small, regular changes like budgeting, learning, and saving.
• Fortune or wealth is generated over time, not over time.
  
  

Conclusion

Lastly, Being poor is not always your fault. It is very easy to blame your job, your background, current responsibilities, etc. If you really want to upgrade and change your life thoroughly then you must be brutally honest about what is holding you in a backward direction. 

Just, start with one step from today. Build a budget. Read books daily. Invest in yourself and be a responsible person.

Because wealth doesn’t come to the smartest or the luckiest—it comes to those who take action.