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Poor
adjective\ ˈpu̇r , ˈpȯr \Definition of poor
1a: lacking material possessionsb: of, relating to, or characterized by poverty2a: less than adequate : MEAGERb: small in worth3: exciting pityyou poor thing4a: inferior in quality or valueb: HUMBLE, UNPRETENTIOUSc: MEAN, PETTY5: LEAN, EMACIATED6: BARREN, UNPRODUCTIVE —used of land7: INDIFFERENT, UNFAVORABLE8: lacking a normal or adequate supply of something specified —often used in combinationoil-poor countries
Did you ever wonder how people are deemed rich or poor? You see a famous person on t.v with a big house, nice cars and showing off a lot of money. No matter who you are if you are spending more than you are earning you will become poor. I know you automatically think that person is rich. Then you see a person with an older pair of shoes, off-brand clothes riding the train, oh this person must be poor. I'm here to let you know this is not always the case. In today's blog, we will search out and find what is the signs to tell who really is poor and why.
3 Mistakes most people make that keeps them poor.
1. Many people assume because they can paid for it that they can afford it.
You might impress your friends and neighbors today, but how long can you keep it up? Have you ever brought something and, immediately you knew it was a bad purchase? Did you ever make a large purchase now have to work extra hours at work just to pay for it? How about moving into a new apartment or house then getting evicted or had to move out a few years later? What about going on an expensive vacation and being behind in all your other bills. The most common one that comes to mind people using their income tax to get something they can't maintain after the check is gone; Like a new car.
2. Poor people will start spending money before it's even in their hands.
I don't know if you realize this, but if you, are using credit to pay for anything and, don't have the money to cover it on the spot you are considered poor. If you go window shopping and, already know where you are spending your next check, you are poor. If you borrowing money just to make until the next check you are poor. If you to decide to spend the money you have on either lunch or dinner because you are low on funds you are poor. If you get into an accident and you settle fast because you need the money or you keep borrowing a loan from the case with high interest, you are poor. If you owe a bunch of people money and don't have enough to pay them back and live your lifestyle you are poor.
3. Most poor people take the simple safe way in life.
If they had a choice most poor people would work their 40 hour week, get their check and that's it. Most poor people don't try to improve on anything when they are comfortable. Most of them hang out instead of working out. Most watch two to three times as much tv as a rich person would. That means, they read fewer books and, when they do read it's never educational. Most poor people won't risk their savings on a chance. They will, however, spend the same saving on a material want. Most poor people already know everything they need to know in life. The fear of not knowing the results of anything would stop them from pursuing their dreams.
What Is Wealth and how do I get to become wealthy?
Wealth is made up of a few things but the main two are these:
1. If I stopped working today how long can I sustain my current lifestyle? If it's less than 6 months you are considered poor. It does not matter if you make a million dollars a week, what is considered wealthy is how long can you last if the money stops today.
2. How many assets do you have? If your assets can cover the cost of your liabilities each month then you have wealth. The biggest problem with poor people is education. I'm not referring to your grades in school I'm talking about how well do you know about finances. Most poor people are uneducated on what is considered an asset. They think a big house and fancy car is an asset. Only if the house is bringing in an income the car as well other than that they are both liabilities.
The first thing you need to know is the difference between good and bad debt. Bad debt is spending your credit card to go shopping or taking out a loan to buy a car or go on a vacation. Good debt is using that same card to buy supplies for your business or taking a loan to start or expanse a business. Buying rental property is good debt but only if you know the market. Purchasing anything at the wrong time without doing your research will keep you poor. Make sure to learn everything about the investment before you sink your life's saving into it.
If you want to become wealthy do like the other successful people do. They pay someone smarter than them to run their companies. Most millionaire and billionaire have a team of great people running their business. Yes, in the beginning, they are the only ones putting the long hours and doing all the work. Then something happens one day the company picks up and now you need help. If you want to become wealthy it starts by learning how to find the right people for the job. Knowing whichever business you are in better than anyone else. Learn how to optimize and utilize every resource at your disposal. Learning how not to spend any money useless it comes from profit. Plus the most important rule to being wealthy is to pay yourself first. This is something most poor people were never taught because all their lives they were shown to pay what is owed and then save whatever is left. You guessed it there is never anything left after rent, taxes, bills, children, shopping and hanging out.
Here Is My Story
I remember being younger having a business that generated a lot of revenue. The problem was I didn't understand how to gain wealth. As fast as the money came in I spend it thinking the well would never go dry. I was living great for the next 8 or 9 years then it happens my business was in trouble. I never put my money into any other investments and why would I. No one could make me money like I could make myself So I Thought. I had a huge saving so even with the business in trouble, I thought I would still be alright. Thinking that things would turn around and get better for me within the next few months. Two years has past how much longer can this bad luck last? 10 year later my savings in completely gone I'm 30 thousand in debt and things are still getting worse. One day I decided I needed to change what I was doing. I started reading books on successful people and their stories. I started going to free classes on finances. I watched YouTube videos and did a lot of google searches. I started teaching myself about what is the truth about money. Money is not real it is a piece of paper asking someone to trust you. Most wealthy people don't even deal with cash all their business is done with trades and bank transfers. If you don't believe me then find out what is backing bitcoin you will be surprised to find out. If you can even find the answer. So I applied the principle of paying myself first as well as finding small investment to put my money. Two years later I'm not wealthy yet but I am no longer 30 thousand in debt. I have a few thousand to go and I have a few dollars saved. Not for a rainy day for a great investment opportunity. From rags to Riches will be my story.
If you have any suggestion on becoming wealthy please share or tell us a story about how bad or good decisions affected your life and are you wealthy or poor be honest. Remember poor does not mean broke
