It is very common to hear people talk about how broke they are. The average American when compared to somebody in a third world country is obviously rich, but to the people who are living in their situations, they honestly don’t have the money in their bank accounts to make ends meet.
This is a complex issue, but ultimately gets funneled back to the individual. It’s not really a money issue, it’s a money management issue. You hear “from rags to riches” stories all the time. Those who are given much can do much, but those who are given little and can do amazing things with their lack of resources are the people who transform the world.
If you want to be the kind of person who makes something out of nothing and has a stack of money in the bank, avoid these habits and watch your bank account transform:
Splurging Upon Substances
Treating yourself is good, but it stops becoming a treat and it becomes the main course if you do it all the time. If you have established a bit of a habit of going out to eat all the time or having a beer or two in the evenings before bed, consider doing that thing a bit less.
It will take a bit of discipline, but splurging on things like this are the things that suck the money out of the bank. A cigarette every couple of hours, a desert when you go out to eat, or a love for getting high are all things that can turn into habits that will such you financially dry. If you’re really concerned about putting money away, stay away from substances so that you don’t trend towards abuse, and exercise a little bit of self control.
Everybody is guilty of an impulse buy every now and then, but if you know that you’re the sort of person who impulse buys more often than not, this could be the culprit for you not having any money in the bank. Humans are subject to whims of emotion, and you might think you really need that cute sweater right now, but will you feel that way when you realize that you could have used that $50 dollars to pay for something a little bit more pressing and important?
Train yourself to not be an impulse buyer and you’ll be amazed at how much money you keep in the bank. People are often “poor” because they’re not paying attention to where their money is really going. Sure, a majority of it goes to bills, but when you look at the amount that goes to eating out, impulse buys at the department store, and things of the like, you’ll realize that you’re much wealthier than you thought. You just need to think before you spend.