WHY MOST PEOPLE ARE BROKE?

Most people you see or meet in front of your eyes are broke, despite them being well groomed, having good phones and cars, but these people are broke because of the following reasons explain why most people are broke.

1. 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.

2. Negative image

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

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 only invest in books, courses or coaches.

4. Debt

Broke people buy what they can’t afford to impress people. In doing these they either waste their income or collect credit card debts. Which keeps them broke.

5. Exchange time for money

 You limit your income when you only get paid for the hours you have worked for. And most don’t see this trap. One can be rich by multiplying their money. This can be done by smart investing in real estate, stocks, insurance products and investing in capital market products such as bonds, bills also investing in pension products.