Many Americans end up broke month after month.
- One third of households earning $75,000 or more a year — live paycheck to paycheck.
- The average indebted household credit card debt is $15,863.
- 73 percent of Americans have less than $1,000 in their savings account.
Even with income above the poverty line, overspending leaves many financially poor.
Here are twelve ways to always be broke, with a typical response:
1. Put Today's Happiness before Future Financial Needs
Just be happy today, there is always Social Security.
2. Not Making Savings a Priority
I’ll get around to saving soon.
3. Not Knowing Where Your Money Is Going
Where does my money go? “I haven’t a clue.”
4. Not Separating Wants from Needs
If I want it, I must need it.
5. Investing In Stuff- Instead of Yourself
Invest in myself, what do you mean?
6. Trying to Get Rich Quick
Just give me a way to get rich, and Quick!
7. Not Sticking to a Budget
I tried a budget once, it didn’t work.
8. Buying Depreciating Assets
But, cars, boats, and the latest electronics are much more fun.
9. Being Unwilling to Sacrifice
The future, it’s a long way off.
10. Trying to Have It All
I work hard, I deserve it and now.
11. Spending More Money Than You Make
Oh, I’ll just charge it to my credit card.
12. Avoid Earning More
If I earn more, taxes will take it all.
(This is simply untrue. Taxes take a percentage, let’s say 25%. Wouldn’t it be better to have 75% of a dollar instead of none of it?)
Questions to ask yourself before spending, to help avoid being financially poor
- Why do I want it?
- Is it actually needed today?
- Can I honestly afford it?
- If I spend now, what happens to me later?