“Having your own money and Being able to Buy or afford everything you need is the type of success I want to reach.”
You might have surely asked yourself, “Why I’m Broke” at least once. But have you ever pondered upon the reasons or even tried to answer this question? No. We all want to acquire financial success and build wealth. But the harsh reality is that only 1% of the world’s population has attained financial well-being in real terms. This is because they have serious goals and are focused on making their dream come true.
Anyone can build wealth and break the chain of “broke” by making appropriate decisions. Make an effective plan and put effort consistently by practicing self-discipline. Take accountability for your decisions and manage time and money management skills. Just start from where you are, irrespective of your present financial situation.
There are plenty of success stories, and you may have heard or read many of them. But if you want to achieve incredible financial success, change your mindset and habits. Also, be sure you know the reasons for the first question, “Why I’m broke.”
#Reason 1: Have I right money mindset?
It’s not about luck, but it’s the right mindset that can help you overcome the “broke” state. It’s the right mindset you need to gain success, be it in life or finances. Unlike magnets, our thoughts attract similar thoughts. If you keep telling yourself, “I’m broke,” you will remain broke. But irrespective of your financial condition, if you believe you are financially stable and have acquired financial success, your financial well-being will increase.
#Reason 2: Do I plan my spending?
Successfully paying off debt, saving, and investing to enhance your financial well-being requires a good amount of planning. You need to have a full-proof plan of spending money, that is, managing the budget. When you plan your budget, you can keep a check on your expenditure and ensure it’s below your income. This way your expenditure will also be in control.
#Reason 3: Do I earn less and spend more?
Most people who stay broke are usually a result of spending more than earning. When you spend more, the burden of debt accumulation haunts you. You know how hard it is to earn cash and how easy it is to spend. Budgeting is not the same for everyone. So, you need to adopt a budgeting method wisely that suits you well.
#Reason 4: Do I lack self-discipline?
Self-discipline is the biggest skill you need to achieve financial success. If you have a strong desire to succeed financially, you need to practice self-discipline and make conscious efforts every day. Further, you need to take accountability for every action you take, for every step you take towards your financial goal.
#Reason 5: Am I a “credit card” addict?
If you are not planning ahead and just spending irrespective of your earning, you are becoming “credit card” addicted. It’s because bills would pile up and you will find it difficult to pay them. If you let credit accumulate, it will be difficult to bear the pressure of debt. So, it is very important that while you plan your budget, you should plan to get out of debt.
#Reason 6: Am I a “money-saving” procrastinator?
It’s obvious that for building wealth, you have to focus on savings as well. The “money-saving” habit should not be procrastinated, and efforts should be put consistently. Even if you have a good job, there is no job security in today’s world. So, prepare an “emergency fund” for yourself and move towards attaining financial success.
#Reason 7: Do I believe in investing?
People think investing is a gamble where you earn less and lose more. This wrong perception has barred many from attaining financial success and confined them to be broke. The truth is that investing can make you rich and build wealth in abundance. You can invest your hard-earned money in different employer-sponsored retirement plans or even in the stock market. The earlier you start your investment, the faster you would reach your financial goal.
#Reason 8: Do I compete with everyone?
For becoming financially successful, it’s important not to compete with everyone by purchasing things you don’t like just to “show off.” If you overspend to impress others, your financial goal may face a setback because of debt accumulation. Your biggest competition should be you, yourself. So, just focus on building wealth and be grateful for your financial success journey.
#Reason 9: Is paying off debt my priority?
People rarely prioritize “paying off debt” and make minimum payments regularly without a robust plan. You should aggressively take on your debt and make sure you reduce your unnecessary expenses. Focus on increasing your sources of income and use “extra” funds for paying off debt. When you get rid of your debt, you can overcome the feeling of broke and adopt a “wealthy” mentality.
#Reason 10: What if I fail?
The fear of failure can destroy everything, especially when you are stuck in a financial crisis. Just put in all your efforts, use all your skills, and fulfill your commitments without thinking about the consequence. Acquire money management skills and assess your finances regularly. Don’t jump. Instead, take one step at a time and let the fear of failure disappear.
Self-Improvement Techniques to Stop “being broke.”
Sitting back and regretting the present situation is not going to overcome your “broke” state. You need to make serious changes and adopt self-improvement techniques. If you really want to build wealth and be in 1%, you need to invest in yourself. All the top leaders have always preached the “mantra” of “personal growth and development.”
Some of the best self-improvement techniques include reading books, attending webinars, taking courses. The bottom line is to get educated, learn and then earn. At the same time, mind your thoughts. Be optimistic and believe “I’m financially independent and successful.” Start taking focused baby steps towards financial well-being and stop “being broke.”