Six Reasons Some People Go Broke

Hello Everyone!! I hope you are all having a great time over there, I definitely feel you should.

I've actually been thinking about something which has been bothering me lately these days which has to do with the reasons some people go broke. I've actually been in this situation before and the fact is that almost everyone of us might have experienced being broke financially in some part of our lives only if you are filthy rich or you come from a very rich family.

The truth is that being broke financially is really an occurrence most people may likely to experience most especially if you are the type that has lot of responsibilities tied in his or her neck. Also, there are also some people with huge responsibilities who may not even be earning much amount of money and still they tend to cope in such situation making them financially capable to neutralize their financial brokenness effect.

Today, I'll be sharing with you the six major reasons why I think some people go broke and most of it are really gonna be from both personal experience and other people's experiences which is gonna be summarized and explained in just six points. I hope you'll learn more from these below reasons to avoid making such mistakes next time if you always go broke often.

Six Reasons Why Some People Go Broke

It's really time to let the cat out of the basket! Grab your delicious popcorn with chilled tasty drink and watch how i drive you through the path of the above topic.

These are six reasons why some people go broke are listed below ;

#1 SPENDING MORE THAN YOU EARN

You'll definitely agree with me that we all know the exact amount of money that flows into our wallet or bank account either through the one will earn from our personal business(es) or salary or money earned from other means which I'll categorize as our money input since it is the money we earn into our wallet.

The fact is that there's high tendency of you going broke if you spend more than your money input and this is why there should be proper management of how you spend your money and what you do with your money. There are different ways people spend more than they earn most especially when it comes to buying what you really don't need or living beyond your personal income.

This is why I'll always tell people to always ensure they have a budget or plan about how they intend to spend their money and they shouldn't live beyond what they earn as this tends to affect their financial lifestyle in return. Whenever you spend, make sure you spend on productive things or spend more on asset that can help you generate more income on the long run and this is why I'll recommend investing some part of your income on valuable commodities that can fetch you more money.

*In conclusion and summary, when the money inflow is greater than the money outflow (money inflow > money outflow), this is really a great deal but never allow your money outflow to be greater than or equal to your money inflow (money inflow >= money outflow) as this may make you go broke financially

#2 LACK OF FINANCIAL SAVINGS

Some people aren't well disciplined when it comes to spending money and managing their finances which makes them overlook the importance of savings. These set of people are mostly found buying anything they both need and they don't need all in the name of spending. The fact is that most successful millionaires today are always found of saving some of their earned money and this is why I'll always recommend you teach your kids to start developing the habit of personal savings so that it won't be difficult for them when they get older.

I'm not saying you should save all the money you earned from your salary or business, I'm just advising you should always save some percentage of your money earned no matter how little it is, it will surely be useful one day.

In summary and conclusion, savings will not only enable you have that kind of relaxed feeling that you have some amount of money as backup funds, but it also keeps you discipline whenever you intend to spend lavishly which strengthen your financial management skills

#3 POOR FINANCIAL MANAGEMENT

Have you ever wondered why some businesses or individual are able to succeed than the other when giving the same amount of money or loan to run their business? Have you ever wondered why some of your colleagues at work are able to accomplish great things in life with their income while some of them are always broke despite giving the same amount of salary?

This is really when financial management comes into play. We all have different nature and mindset and this is why most of us can't behave the same way irrespective of you having a twin brother or sister. The fact is that we tend to manage our finances differently and some factors such as responsibilities and goals tend to affect our management decision when it comes to our finances.

In summary and conclusion, it is always okay to take your time to learn about how many works. You should learn how to develop your financial ma skills because the more skillful you are, the less you become broke financially and the lesser skillful you are, the more you become broke financially.

#4 BUYING WHAT YOU DON'T NEED

I know you may actually be thinking that this is your money and no one has the right to disturb you on the things you always buy but the fact is that this factor has actually been the major reason why most people are always broke.

We now live in a world where everyone wants to be trending and showing off to others just to compete with other people. We now live in a world where people can't be real or truthful to their self by being their real self but they'll rather want to flaunt what others are flaunting in terms of materialistic possession which may later affect them financially.

I really find it absurd buying things you don't need just for the sake of oppressing others or showing off. Some people even go to the extent of lending money just to buy what others are buying even when they know they can't afford it. This is really why I trust myself because I prefer buying things beneficial to me in terms of food or asset they can fetch me more ROI instead of me doing they bullshit (sorry for being rude though, but it's really the fact).

In summary and conclusion, avoid buying things that won't add any value to your life or career. Always ensure you buy things you need which are very important to you. If you feel like wasting money, I suggest you use such income to impact the lives of others or better still invest such money.

#5 LACK OF MULTIPLE STREAMS OF INCOME

Why won't you go broke when you keep spending all the money you earn from your single job without having additional source of income? Why won't you go broke when you don't have any additional investments or side hustle along side your normal job since you knew you have lot of responsibilities and huge amount of bills to foot?

The fact is that everyone of us definitely needs an additional source of income most especially if you have greater responsibilities. There's always a popular saying that you should "never put all your eggs in one basket" which simply means you need to diversify your source of income and have multiple streams of income.

There are different ways of you earning through different means apart from your normal job and one of it is by investing. You can start investing or trading cryptocurrencies on different platforms such as Quidax (for Nigerians/Africans), Binance or any other cryptocurrency platform that seem more okay to you.

#6 ADD YOURS

One of the best ways to increase one's knowledge is by learning from others and this has really helped me a lot when it comes to learning. I'm quite sure some of you might have one or two things to add as regards to this post, I'm always open for learning.

I'll be expecting your feedback and insights about the reasons why some people go broke and I hope we all learn from your comments.

Thanks for your time and I hope you have a great day ahead with love from @hardaeborlaand

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