Seven (7) Reasons Why You Are Always Broke and Can Not Save Money

One item that is difficult to obtain but simple to spend is money. One would be constantly broke and unable to save money if they did not exercise caution or follow specific principles when handling their finances.

The majority of people in Nigeria are living in poverty or on the verge of it. Despite worsening living conditions, some individuals rarely go bankrupt, and they save money. One would wonder how that is possible. It is highly likely, and I'll explain how.

There are explanations for why you never have enough money and can not save like other people. I've included some of these factors below from my own perspective.

 

1. When you lack the right mindset.

The correct mindset is the first step to never going broke and being able to save money. Set clear priorities and always prioritize what you need most. In economics, it is known as the "scale of choice." Learn to get rid of anything that causes you to spend money excessively.

2. When you don't plan your spending.

Everyone should strive to be prudent in their behavior. Refrain from making expensive purchases. Even before the money arrives, make a plan for how to spend it. Create a budget and follow it. Avoid going overboard with your spending until absolutely necessary.

Because you don't budget your expenditures, you are perpetually broke and unable to save money.

3.You spend more than you earn.

"Cut your coat according to your size," the saying goes. Limit your spending to what you earn. Most people end up borrowing because they spend more than they make. Living with debt makes it very difficult to save money, and you run the risk of going bankrupt.

4. You Lack Self-Discipline.

Self control is necessary for sensible and wise financial spending. If you lack self-control, you will find it challenging to save money. As the money pours in, you will find yourself in financial trouble in the blink of an eye. When it comes to spending money, cultivate the habit of self-control.

5. You Don't Invest.

You must learn how to invest if you want to keep from going broke. Make an investment in profitable business prospects you find. If you want to avoid being financially beaten down, don't rely on just one source of income. Keep in mind to only take measured risks.

 7. You lack money management.

More crucial than earning money is effective money management. If you don't handle your money well, you'll always be broke and unable to save money. Develop effective money management skills by exercising self-control and making calculated purchases.

I think you can prevent always being broke if you avoid the things I outlined. Since this post expresses my personal opinions, feedback and contributions are welcome.