Money. We all need it to survive but for some reason no matter how hard some of us work for it, we just don’t seem to have enough left to enjoy the finer things. In school we are taught about many useless topics that we can’t put to use in everyday life. It’s very strange that they don’t try to teach us about proper money management as early as they do sex education and parenting class. I mean after all, if some of these 16 & Pregnant stars knew how much it cost to raise a child maybe they would think twice before laying down. As a child I was encouraged to save my money for a rainy day. My mother would always tell me to save my money without really explaining why or how it would benefit my life down the line. Like many 20 something’s my age instant gratification seemed more appealing than the idea of sacrifice. This way of thinking led me to many nights of lightly seasoned Top Ramen Noodles and instant regret that I spent my money with such reckless abandon. It was during my final “broke chick” spell that I had to face the facts I sucked at spending my money wisely. I looked at my investment portfolio and realized shoes and purses technically didn’t count as investments. Staring into an empty wallet and bank account with insufficient funds forced me to realize the real reasons I was always broke after bills. If you are in a financial predicament that you don’t enjoy, it is time that you take the necessary steps to rectify the situation. Our 20s are the years we must build a nest for our retirement down the road. It is during this decade that a young woman must build good credit, clear bad debts and contribute to a form of investment no matter how modest. Without further adieu let’s get into the 6 Brutally honest reasons you are always broke:
1. You spend more than you earn.
When you walk into a store buying a new pair of shoes is more important to you than paying your bills on time. You eat out often, lend money to those who never pay it back and it has led you to a place of poverty. If you continue to spend more than you earn relying on credit cards and spending to the last cent, you will never become financially stable. Learning to prioritize your needs vs your wants will help you to make better use of your money.
2. You don’t have any investments.
You will be hard pressed to find anyone in this world who is a self-made millionaire who doesn’t have any investments. The poor work for money and the wealthy make their money work for them. When you bust your chops doing what you love to do, you owe it to yourself to pay yourself first. You do this by investing set portion of your earnings to grow and multiple for you. If you don’t know much about investments everything you need to know is a Google search away. Book an appointment with your local bank and bring in a list of questions you may have related to investments. They will take the time to answer your questions so you know exactly where your money is going.
3.You have allowed someone to convince you how much your hour is worth.
One of the reasons I decided to go into business for myself was because I found it ridiculous that someone I didn’t know and would never meet had the balls to tell me how much my hour was worth. I have worked in jobs where I literally worked through my breaks, arrived early and left late just to earn more money. I was always left feeling miserable and unfulfilled. Friday was all I looked forward to and the thought that this would be my life forever depressed me. I know there are many jobs that run on an hourly rate that people truly enjoy, for me that just was not the case. If you too feel you are being undercut each hour on the job, you may want to consider why you are not planning your exit. If you are self-motivated, willing to put in some long hours and really stick it out-entrepreneurship may be for you too. It is not easier by any means but the earning potential in the long run is far more lucrative than slaving away at a job that pays you peanuts for irreversible life hours.
4.You are depreciation focused.
There are assets which can be sold for money down the line and then there are those pesky liabilities that suck your money dry. When you are depreciation focused buying things that lose value over time are more your cup of tea. Things of this nature include but are not limited to: Expensive cars, personal vacations, inexpensive clothing and expensive hair/ beauty products. When your goal is to one day not have to focus on the price tag alone, you will have to begin focusing on purchasing things that don’t lose value quickly. Investments, Property, businesses and designer items you can sell on consignment if it came down to it are smarter purchases.
5.You are not around wealthy people enough.
Show me your friends and I will tell you who you are. I have friends from all walks of life. The ones who motivate me the most are the ambitious and wealthy ones. Whether they be rich in the spirit of God or with actual wealth-they inspire me. Being around broke people will make you broke too. Constantly eating out, shopping needlessly, never discussing investments or business opportunities will slaughter your drive and chances to be well off. Make just one highly successful friend or find a mentor and watch how they rub off on you. You will go to their home and feel motivated to upgrade your own. You will learn so much from them about business you will feel inspired to start your own. The benefits are endless but the most valuable one is becoming successful yourself so you can be an asset to that friend as well.
6.You are not thinking about the long term benefit.
If you are easily swayed and influenced by the women you see on vacations posted to Instagram or what you want and need temporarily you are setting yourself up for failure. If you had saved even a modest $100 a month for the last three years you would have $3600 + interest to enjoy. Or if you started five years ago (at 20 if you are now 25) you would have $6000 + compound interest. If you do not have $3600-$6000 in your account now or more you may be a temporary thinker. This isn’t to make you feel bad but to prove to you sacrifices made now will bring you happiness in the future. What money would you like to give the woman you will become in 5 years? Help her out and start saving now. If you don’t she will be broke.
Written By: Natosh Monroe