10 Ways To Be Poor Forever

Financial independence is something we all dream about but unfortunately for many people it will always remain a dream.  Most people are destined to be poor forever.  

Luckily, you are taking steps to keep you from falling into the "poor forever" trap.  Making money is a habit that you learn through education and experience.  It takes commitment and dedication on your part. Most importantly, it takes an attitude.

What Is Your Financial Situation? 


One of the biggest mistakes people make is in not knowing their financial situation. Things like how much debt you are carrying, the actual costs of items like insurance and loans or not thinking about the future.  Things sneak up on you when you live like this.  Big things - like foreclosures and repossessions. 

 10 Steps To Keep You Out Of The Poor House


To help you stay out of the poor house I've made a list of some of the most important factors you need to keep in mind.

1.     Get educated.  Either through courses offered at work, post secondary education or on-line classes - make yourself a more valuable employee. 
2.     Know your debt.  Consolidate all your debt into one place so you can see at a glance how much money you owe.  Be aware of this debt and work to minimize it.
3.     Pay back your debt.  Easier said than done sometimes but you need to make every effort to pay debt off.  Interest rates on personal debt is high and if you don't get a handle on your debt it quickly becomes unmanageable.
4.     Don't live outside your means.  Before you run out and spend money ask yourself if you really need it  - then ask yourself how you are going to pay for it.  Remember, debt is not necessarily your friend.
5.     Learn your tax system.  Educate yourself on the basic tax rules.  Knowing how your government taxes you will help you save money.  You can plan major purchases or sales to minimize your taxes owing.
6.     Save some money.  Canada has plans like the RRSP - registered retirement savings account and TFSA  - tax free savings accounts that offer incentives to help you save money for the future.  Even $50/month will make a difference.
7.     Graduate.  Post secondary studies are a great thing.  There is so much you can learn but it is expensive.  Unless someone else is paying your way you need to graduate and get to work. 
8.     Review your insurance needs.  Insurance costs can get expensive. Know what you need to insure and review your insurance needs yearly. 
9.     Forget about the Jones.  Be your own person.  Don't try to compete with those around you it will only drag in down into the debt trap.
10.  Choose your friends wisely.  Surround yourself with people that have a similar mindset as you.  You constantly feed off of the people around you.  They motivate and educate you so make sure your friends are people who will help you move forward.

These are factors that I feel are important for a healthy financial life.  As you educate yourself on personal finance and wealth building you will develop your own list. 

Whatever points you decide are important will be correct for you and your personal mindset.  The main idea here is that you need to always be thinking about money and how you are going to keep it in your pocket.

 

 The Future Is Yours


The future will be what you make of it. Life will undoubtedly throw you curve balls but if you keep a strong 'money matters' mindset you can overcome anything. Save Money By Keeping Track Of Your Receipts is another article I've posted that you might find helpful when it comes to knowing where your money is going.

That being said, don't let money consume you.  Make time for friends and family they are what is really important.  Money may make living life easier its people that make life worth living.