Why Do People Go Broke?

I was randomly seated

1. Dumb Debt

You can see broke-people have iPhones and cars. They buy what they can’t afford to impress people they don’t like. In doing this, they either waste their income or collect credit-card debts. Which keeps them broke.

Read: 5 Fintech Apps to Grow your Finances

2. Exchange Time for Money

You limit your income when you only get paid for the hours you work. Poor People don't see this trap. One only gets rich by multiplying their money. This can be done by smart investing in Stocks, Real-estate, Roth IRA. If you want to stay wealthy, you must learn to exchange your time for money.

Read: How to Invest in Stocks

3. Zero Personal Investment

Income is a ladder which you have to climb. The only difference between a general doctor and a heart surgeon is their skills. Most don’t increase their earning potential. Don’t invest in books, courses or coaches.

Read: 5 Investing Mistakes to Avoid in 2025

4. Negative Image

When we don’t have an explanation, we can think that the rich get richer by stomping on the poor. However irrational, these unconscious beliefs influence their action. It acts as an invisible glass wall when they try to make more money.

Zero Financial Knowledge

Schools have never taught us about the basics of money management. People are blank when it comes to dealing with debts or investing money. And unfortunately, they never make an effort to learn it on their own.

Conclusion


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