4 Reasons People are Always Broke

Why are most people always lacking sufficient money to buy what they need or solve their problems. Why are you always broke (if you are reading this chances are that you are broke. Or maybe we are wrong).

So why exactly do many people stay in the insufficient money zone. Here we outline why you are likely broke.

1. You Spend More Than You Make

This is very obvious – the first and key reason for being broke. If you make $1,000 per month and spend $1,300 monthly you definitely will be broke and not just broke but in debt.

Some people can actually live this way and look successful but it is not something every one can pull off easily. Let’s say companies or corporate bodies can do that.

2. You Spend More time Worrying about Savings Than on Earning Money

How many hours a day do you spend in trying to find ways to save more? What if you are told that you should spend more time in looking for ways to increase your income.

So many personal finance advisers focus on telling people to save more instead of looking at what they can do to make more.

Spending more time worrying about saving won’t make you rich.

3. Impulse Buying (aka No Discipline)

How many times have you made purchases you never planned for? It is one of the single most frequent reasons why people spend more than they make. Impulse buying eats into your pocket.

4. You Rely on One Stream of Income

In these difficult economic times people are on the lookout for ways of earning diverse income. Multiple streams of income however requires careful planning and discipline. You don’t want to be doing too many different things at once otherwise you run the risk of working without much difference in your financial status.