8 Reasons That Cause Financial Failure.

The 8 reasons for financial failure in the world.


Struggling financially? Many people, even though they give the impression to everyone that they have done everything. They work, live in nice houses and drive good cars, but they live from day to day. Here are 8 main causes of poverty in the first world.

Live beyond your means

There is no way out. If you spend more money than you make, you'll need to get some extra money somewhere, and that almost always means borrowed money, also called buying a loan. All of these have a cost and this is known as interest. When you become accustomed to buying things on credit, the interest you pay throughout your life increases rapidly. Interest is sometimes referred to as dead money because you have nothing to show for every interest you pay.

Think about what you can spend with all of those interests. It's almost too painful to think about, but if you want to escape poverty, you have to get out of the sand and face reality. Your financial future depends on it.

In line with Jones

Some people try to hang out with their friends for what they spend their money on. It is a compulsion that will cost you a lot. Becoming aware of your self-image will greatly reduce your finances and become expensive when you stop working. You may think your coworkers are doing well financially to buy these items, or you may think they are doing well, but what you don't know may surprise you. That they are indebted to the eyeballs. Even if they live within their means to fund their lifestyle, that doesn't mean you have to follow them.

Don't enjoy other people or live up to other people's expectations, just take what is right for your circumstances and you will be much happier.

Consumer payable

Consumer debt, or what is often called ridiculous debt, buys goods with borrowed money. He spent tomorrow's income today. Debtors usually don't forget what happened to the so-called goods they bought on credit. that their new item will be cheaper once purchased. This is a critical factor to consider. The money owed on the item is always higher than the price of the item. Nobody has been hit that badly by the cycle of debt and poverty, not only those on low incomes. Indeed, middle-income people are vulnerable to this trap.

Commercial greed

Trade in the twentieth century brought great prosperity; Create jobs and start countless companies, but there are other countries. The first poverty in the world caused by an insatiable appetite. People are not happy with what they need, but they still want more. All of this has to be paid for, this is money that can form the financial basis for their future.

Addiction

Addiction is very expensive; Just ask the smoker. You don't have to be a math whiz to calculate how much a smoker will pay for their addiction. This is over 100 NZD per week. This is the equivalent of five thousand a year and fifty thousand a decade. No wonder so many smokers go broke. So it is with those who are addicted to alcohol and until now.

Financially blind

Financial illiteracy is a major cause of financial poverty, and it is not just low income people who are financially illiterate. High income people are also to blame. You'll hear stories about successful athletes who made millions in their prime, but were crushed years after they retired. It is important that you save and invest your money in the years when you are best prepared for when you run out of money.

irresponsibility

Failure to take responsibility for someone's finances is irresponsible. You will find all kinds of reasons not to join or contribute to Kiwisaver. Excuses like "You can't carry everything", "I can die before I retire" or "I'm still young." People who are not responsible for their finances tend to be irresponsible in other areas of their lives. Making commitments, whether in a relationship, owning a house or car, or saving for retirement, takes responsibility, and this is what separates men from boys.

Bad society

There is no doubt that a bad society is the main reason many people live in poverty. It says, "You are the average of the five people you spend most of your time with." So it's important to check who you meet and ask if their attitudes and opinions about finances affect your money habits. To grow, you need people to help and encourage you. This sometimes means separation from bad friends. Some people find this difficult, but it's worth it in the long run. 

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