13 Reasons why you are poor even you work hard
Are you wondering why you haven’t felt the ascension in the few years you’ve been working? Each day, you get up early to enter. You return from work and endure adversity in the hope that something will change in your life. However, you have worked diligently for many years, you have persevered, you have suffered from, and your life has remained relatively unchanged. Why? These are the thirteen most frequently cited reasons why a person remains impoverished despite diligent work.
- Failure to adhere to the monthly budget.
Each month, you have expenses to meet—food, rent, bills, fares, loads, and clothing, to name a few. Include items that you do not require but that bring you joy, such as outings, dates, dining out, and new experiences. These costs should be factored into your monthly budget, which should detail all of your monthly expenses. However, if you do not adhere to your monthly budget and continue spending, you will run out of money. How will you get there? Will you take out a loan and repay it only when you are paid again? Perhaps it is acceptable if it occurs only once. However, what if you lose control of your monthly spending? And your debts continue to accumulate. This is why many Filipinos are suffering today, even though they still have jobs. And this is also the second reason: debt reduction.
- Debt negotiation.
If you find yourself sinking deeper and deeper into debt, pause for a moment, take a deep breath, and assess your situation. Put an end to your debt-generating activities. There are numerous reasons why people become in debt. Perhaps you lost your job unexpectedly, or a severe emergency required a significant financial outlay. Such circumstances are transient and can be rectified through work. However, if a person borrows money for vice – things that do no good in his life – this is not a temporary situation. It could be severe and ruin his and his family’s lives. At times like this, he requires assistance from someone who genuinely cares about him.
- Saving is not elevated to a priority.
Everybody should have some money saved up. There are numerous reasons why this may be necessary – you may lose your job and require immediate funds, you may need money for a planned house or car, you may need money for a child’s education, you may need money for retirement, or you may need money to purchase an expensive item, and many more.
However, suppose a person does not save and instead spends his monthly salary on various expenses. In that case, he can easily find himself in a situation where he will struggle to recover from debt. This will occur at inconvenient times. And growth and enrichment begin with a positive attitude toward saving. We cannot achieve financial success if we are unable to manage our money correctly. In another article, we discussed saving: why it’s necessary, how to do it properly, and some tips.
- Prioritizing present pleasure over future necessity.
The extent to which we are tempted to put pleasure ahead of our future. Purchase expensive items such as automobiles and condominiums. And you’re almost certainly going to pay for them in installments.
This can only mean one thing: you’re borrowing money that you haven’t earned yet. The frightening part is that you’re not confident you’ll be able to pay them because you’re not confident you’ll be able to work tomorrow. What if something happens to you that renders you incapable of working? Surprisingly, a sizable portion of the Filipino population has done so and continues to do so.
- There is no financial plan.
Apart from determining how you will spend your monthly salary—how you will budget and how much money you will save—you must also choose what you will do with your savings.
Assume you’ve saved and your savings are increasing. It’s natural to be tempted to move money if you don’t have a plan for your salvation. What are your savings goals? How much money will you be able to save each month? How much time will you save? Are there instances when you can transfer funds?
It would be best to decide how and where you will save money based on the answers to these questions. Is it deposited in a bank? What about mutual funds? Is it a form of life insurance? You should be aware of the responses to this question. It’s prudent to conduct preliminary research on where to invest your money.
- Purchasing depreciating assets.
When you purchase a brand new car, its value immediately decreases by about 20%. Thus, if you buy a car for a million dollars and decide that you dislike it after a week of use, you will sell it. You can anticipate approximately 800K worth of it. And the car’s value depreciates by 15% – 20% per year.
This is the case with the majority of the items we purchase—cellphones, television, automobile, clothing, and watches, among other things. Very few people understand the value that they can earn, such as land. However, the majority of Filipino employees acquire more depreciating assets. The question is, are you prepared to follow them?
- Being untruthful to oneself.
Many people place blame on their ancestors. Because they were born impoverished, they grew up poor.
Others, on the other hand, place blame on others for their perspective on life. “My partner cheated on me” “My friends abandoned me.” “Those who invested in me are worthless.” “The training course for which I paid was a fraud.” Point the finger at everyone except themselves. However, you can see in successful people an honesty with themselves—in their flaws, in their errors. They were accountable—in admitting guilt and resolving issues, even if others caused them. Before we can make any changes in our lives, we must first be honest with ourselves. This is not a simple task. However, not impossible. Do you prefer to live in delusory reality or in the fact that will liberate you toward ascension?
- Associating with the incorrect individuals.
In today’s world, there are numerous deceivers and false influences that we must avoid and scrutinize. These could be individuals you see on television or in magazines, as well as coworkers, neighbors, or acquaintances. It is detrimental to associate with those who engage in financially destructive behavior. You will be compelled to cooperate, and you will eventually be influenced, even if you disagree. The cost here, cost there, on items that you do not require. Peer pressure, andun yung. And, fearful of being left out, you choose to follow them. However, it is prudent to avoid them at all costs.
- Failure to correct financial errors.
It’s difficult to expect a change in life if you don’t change your behavior. Albert Einstein, one of the world’s greatest minds, once stated: “Insanity Is Repeating the Same Behavior and Expecting Different Results.”
If numerous events occur in your life, nothing will change even if you are aware of them but do nothing to rectify them. If you consistently over-budget but don’t make any savings or avoid spending on things you don’t need, you’re still over-budgeting, and you’re still over-budgeting. Period. However, are you satisfied with simply repeating the incident? Perhaps it’s time to make some adjustments to your current course of action.
- Seeking an immediate source of income.
Many people gamble on the lottery in the hope of winning and receiving a solution to their numerous life problems. Even though we know our chances of winning are slim, many of us continue to gamble. Why? We enjoy instant gratification – instant noodles, fast food, and instant wealth.
According to a study published in Japan’s Journal of Financial Crime, economic dissatisfaction increases a person’s likelihood of becoming a victim of a financial scam. Along with his displeasure, he desires an immediate resolution to his financial difficulties. It is not impossible to earn a substantial income, but it requires considerable effort and time. Even in business and investment, the principle holds. And, yes, there are ways to expedite the process of earning money, but you will still have to work at it. We must understand this to avoid developing unrealistic expectations that will bring us nothing but disappointment. Additionally, let us avoid individuals who are out to defraud us of our money.
- There is an absence of appropriate guidance.
Many Filipinos desire advancement in life but lack the necessary guidance. Not that man cannot overcome adversity without it. However, the hardship, fatigue, and mistakes can all be significantly reduced if you have someone to guide you – someone who has the experience and already knows what he is doing.
You are not even required to figure out how to do it, as you have a guide – similar to a cheat sheet. A personal guide may not accompany you. Books, training courses, and tutorials are all available. The internet contains a wealth of information. The only question is whether you make an effort to study to earn a good living.
- There is no action.
One of Warren Buffet’s greatest investors expressed regret for not purchasing Google stock in 2011. He was already extremely wealthy at the time. However, he laments the income he would have received from the increase in the value of Google’s stock. It will be challenging to find a Filipino who regrets not studying stock trading earlier to participate in Google’s growth. Many of them are more concerned with what is happening in show business than with personal development. However, they all desire a prosperous life. What do you choose? You have a choice. We previously discussed the reasons why advancement is difficult for employees in another article.
Almost everyone is fearful of things they cannot see or comprehend. However, to achieve our dreams, we must alter the majority of our financial behaviors. One of them is starting a business where you can earn a lot of money – even more than other employees reach. Each of us has numerous inquiries about entrepreneurship. We know very little. We have no idea whether or not we will succeed. Are we squandering our time? Is it acceptable for us to be here solely as employees? – and, at the very least, we receive a monthly salary. We are suffocating in our comfort zone. We are not used to changing, even more so when we are already struggling.