Home Lifestyle 11 Financial Decisions That Keep You Poor

11 Financial Decisions That Keep You Poor

We can all make bad financial decisions sometimes. But some decisions condemn you to a life of poverty, without you even realizing it.

Zerxza.com may earn commission when you buy something through the links or banners on this page but we only feature brands or products we trust.

Readers' Picks

9 Reasons Why You Feel Tired Even After 8 Hours of Sleep

We all know how important sleep is, and we dutifully hit the sack to make sure we get the recommended 7 – 8 hours...

9 Reasons Why People Work Out (And Why You Should Too)

Now that the warm weather is finally here, there’s an increased focus on working out. It’s just so much easier to work out when...

Is Feminism Overrated? It Probably is and Here's Why

Feminism is a large movement, drawing all types of women to its helm. But there are lots of women who don’t want to label...

Stop Reading Horoscopes! Here's Why You Need to Stop

Horoscopes are tempting, no argument there. Often, we just can't help but open up that page and read what's written in the stars for...

Wearing Panty Liners: Are Panty Liners Healthy, Safe and Normal for Daily Use?

Maxi pads, panty liners, tampons, cups, and period panties. There’s a world of possibilities when it comes to feminine care products. Even though we’re all...

Why Your “OCD” is Probably Just Overthinking and Nothing Else

How many times have you heard someone blame their behaviors on OCD? It’s an all too common explanation for our fussiness and perfectionism. But unfortunately,...

On first glance, you think you are completely responsible with your finances. You work hard, don't spend overly much but yet you still find yourself broke every month.

Sometimes, we can all make decisions that might seem reasonable but in fact, make your financial situation even worse. Here are 11 such financial decisions that might endanger your finances and keep you poor.

Subscribe & Save 20% On 20 Smoothies At SmoothieBox.com, no coupon needed!

1. You misunderstand wealth

Bad financial state starts from misunderstanding wealth.

The thing is, you can't measure wealth in dollars, but instead, in time, according to Robert Kiyosaki.

If you should lose your job today, how long could you survive with your current savings? If you have enough money for 5 months, you are wealthy in the terms of 5 months.

It doesn't matter how much money you earn. What matters is how you can manage that money.

Even if your neighbor has a bigger house, a new car, and the most expensive clothes, it doesn't mean he's wealthier than you. It's possible he might only have money for 2 months while you might last for a whole year.

As soon as you start evaluating wealth according to this principle, you'll create less stress around money.

Sale FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer
Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth
Sale You Are a Badass at Making Money: Master the Mindset of Wealth

2. You spend more money than you can earn

This is the oldest and the most condemning decision that people just seem to keep making.

You find a good job, move to a bigger house and live a luxurious life. In a few months, you lose the job, the house and the whole American dream comes crashing down.

Sounds familiar? Unfortunately, this happens more often than any of us would like to see.

As soon as people get a better job or a pay raise, they tend to spend heavily and usually, well beyond their means, putting them back to a financial black hole despite better earnings.

3. You use future earnings in order to finance current expenses

This didn't sound very logical, right?

Yet people are doing this every single day. Thousands of people buy things they often don't even need and they use money they don't really have. By that, we mean credit cards and loans.

All credit products work the same way. By taking a loan, you assume that you'll have money in the future. But you'll use the loan in order to buy something today.

Essentially, you are spending your future money way before you've even earned it.

4. You are using your credit card, though you don't really need it

Yes, we know – those shoes are on sale and you need them in your life. That new phone is a must-have. Your favorite designer came out with a new collection.

In today's society, we're constantly driven by consumerism. Sometimes, this consumerism goes too far and makes us do stupid things such as max out a credit card and then realize there's not enough money to actually pay the bill.

5. You are not thinking about your future

When you are in your 20s or 30s, retirement seems as such a distant future. By ignoring retirement questions, you are just digging a huge hole in your finances.


The sooner you start thinking about retirement, the more secure you'll be. Make sure you are on good terms with your retirement plan and start saving and investing.

6. You are not using every opportunity

Though it's hard to evaluate possible opportunities in the present, think carefully before you let something slip past you. No matter if it's a possible job or something else – it's better to take risks than later regret. You never know what new experiences might bring.

7. You don't have emergency savings

According to some reports, almost 25% of Americans don't have any emergency savings. If an emergency should strike, they are left in the lurch.

If 2020 has thought us anything, then it's the impact of emergencies. You never know when something might happen. To avoid taking out personal loans or using credit cards, start an emergency savings fund that's only meant to be used in dire situations.

Nordstrom Rack Holiday Gift Guide

8. You don't have any investments

To some, investing seems like something that's reserved only for wealthy people. In reality, everyone can start investing, even with very limited funds and knowledge.

Even a few hundred dollars is plenty to get started. What matters is taking the first step towards financial freedom – and investing is that first step.

9. You are not entrepreneurial enough

If you can't seem to make ends meet, it's possible that your financial well-being is stuck due to your passive attitude.

Maybe you're too passive at work and don't take enough initiative. Maybe you're talented in something but don't use your talents. Maybe you have some ideas but you are afraid to execute them. Success rewards only those who take action.

Alyaka Beauty Advent Calendar Luxe 2020

It's better to try and fail than to never try and always wonder if you would have been successful.

Sale FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer
Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth
Sale You Are a Badass at Making Money: Master the Mindset of Wealth

10. You don't take responsibility for your actions

It's very comforting to think how your employer is at fault when your salary is too low.

But is that actually true? Are others really responsible for your wealth? Blaming others is just an excuse for not taking action.

In order to build a better life and become wealthier, you need to understand that no one else is responsible for your wealth. Once you realize that, you'll also notice how it's easier for you to grab opportunities and take more action which, in turn, generates a better income.

11. You are impulse-buying and only follow the price tag

Impulse-buying is the bane of your wallet and one of the worst financial decisions you can ever make.

What's even worse is buying things only because they are on sale. In reality, you should always consider the price-performance ratio. Lower price doesn't always mean you are making a budget-friendly decision.

Sometimes, we are all making bad financial decisions but once you start analyzing your actions more, you'll see how things turn for the better. All it takes is rooting out some lousy financial habits like the ones above.

Latest at Zerxza

9 Extremely Clever Ways to Save More Money

Have you ever tried to save more money but end up completely broke anyway? Even if you think you’ve done so so well. Maybe...

The Psychology of Money: Why Sometimes It Feels Great to Spend Money (and Sometimes It Makes You Feel Guilty)?

Whether it’s Cyber Monday, Black Friday, or some other shopping madness, consumer society is hunting the western world and showing its ugliest side. A frighteningly...

8 Powerful Winter Skincare Products for a Revitalized Skin

Wintertime is a real hazard on your skin. Cold wind and harsh temperatures do a number on you, starting from redness and ending with...

Are Your Friends Stopping You From Making Better Financial Decisions?

You should definitely buy that handbag, it’s meant for you… Hey, come out with us tonight! Please pay for the dinner this time, I promise it...

Should You Actually Avoid Carbs to Maintain a Healthy Body?

Like fats, carbohydrates are a highly controversial macronutrient. People either embrace carbohydrates or reject them altogether. In general, people equate carbs with weight gain...

You’re on a Good Diet But You’re Still Gaining Weight – What Should You Do?

The whole point of putting yourself on any diet is to see positive results. But what happens when you’re on a good diet but...

Lacto Vegetarianism: The Wisest Vegetarianism Type?

Are you thinking of going vegetarian? If so, you might think you just have to exclude animal products and up your veggie intake. But...

Related Articles

error: Content is protected !!