The Real Reasons You’re Always Broke

The Real Reasons You're Always Broke

In our culture, nobody likes to apportion blame. But sometimes, the way our lives work out is an entirely of our own making, particularly when it comes to our finances. 

In this post, we take a look at some of the reasons you’re always short of money, and what you can do about it.

Your Income Is Falling

The likelihood of your income falling on a fixed salary is minimal to non-existent. Employers will usually only insist on a pay cut under the most extreme circumstances. 

However, if you work for yourself, it can be tempting to take time off, which lowers your income. 

Granted, you can afford to take liberties like this occasionally, but once it becomes a habit, you can find yourself in dire financial straits. To get out of the falling income trap, you need to be tough with yourself and ignore arguments from other people that you should “take a break.”

You Have To Make Student Loan Repayments

Given the liability that comes with student loans, and the high price of going to university, many young people are wondering whether it is worth their time. Student loan repayments are a burden on one’s finances and you can’t escape the money you owe through bankruptcy. 

Fixing the student loan issue is difficult, but the best way to approach it is to move into cheaper accommodation and focus your life on paying it off as early as you can. This way, you avoid high-interest payments later on. 

You’re Not Comparing Credit Card Providers

Different credit card providers offer different rates. Some are cheap, while others are costly. 

The only way to get a clear picture of what’s out there is to use comprehensive price comparison tools, such as Compare Credit. This way, you can see what deals are available for your particular credit rating and spending requirements. 

You Spend Your Money On Depreciating Assets

Ideally, you want to buy assets that rise in value over time. However, many people get into the habit of purchasing items that fall in value, decreasing their net worth. 

Swimming pools are a good example of this in practice. Expensive cars are another. Once you’ve spent money on these items, you can never get them back.

Your Housing Is Too Expensive

The square footage of the average home has gone up by more than 1,000 square feet since the 1970s and, amazingly, continues to rise. It’s not free, either. People are spending more on their homes today than they ever did in the past. 

Unfortunately, the only option here to save money is to downsize. When you choose a smaller property, you pay less in rent and on general household maintenance. 

You Have A Negative Mindset

Lastly, many people stay broke all their lives because of their negative mindset. They believe that they are poor, and it becomes a self-fulfilling prophecy, acting out unconsciously. 

Success financially is only 20 percent what you know, and 80 percent what you do. Therefore, if you can make significant changes to your life now, you can thrive in the future.

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