WHY MOST PEOPLE ARE BROKE

 

1. Lack of financial education

Many people are not adequately educated about personal finance, budgeting, saving and investing leading to poor money management and financial decision-making.

2. High living costs

Rising living costs, including housing, healthcare, education and daily expenses can outpace income growth leaving little room for savings or investment.

3. Low wages and income inequality

 Low wages and income inequality can make it challenging for an individual to meet their basic needs and build wealth.

4. Debt

High levels of debt which includes credit card debt, student loans, medical debt, house rent overdue, any kind of loans can place a significant burden on individuals hence hindering their ability to save and invest.

5. Lifestyle inflation

As people earn more money they may also tend to increase their spending on non-essential items, leading to a cycle of higher expenses and they will reduce their savings.

6. Lack of emergency savings

Many people do not have sufficient emergency savings to handle unexpected expected expenses, leaving them vulnerable to financial crises.

7. Limited access to financial services

Some individuals may not access to financial services due to remoteness of their region, lack of access roads, insecurity in their area and lack of financial institutions such as bank, insurance companies and SACCOs.

8. Impulse buying and consumerism

Impulse buying and a culture of consumerism can lead to unnecessary spending and financial instability.

9. Lack of access to education and opportunities

Social economic disparities and lack of access to quality education and job opportunities can hinder financial progress.

10. Medical expenses

High healthcare costs especially in countries without universal healthcare, can quickly deplete savings and push individuals into financial distress.