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70 comments
There are things that people do that leads to poverty. Things that they did not take their time to think about before doing them. It is only after they have made those decisions that they realize that what they have done was unwise. Some of these decisions include:
1. Living an oversize lifestyle: This is when people live the kind of lifestyle that they are not prepared or ready for. They have not reached that level yet and also do not have the financial resources for it. This may be because they are trying to impress, intimidate or compete with others. A person that spends money on more than what he/she can afford, will in a short while end up being broke.
2. Time wastage: There are 24 hours in a day and when someone does not use part of this time to be financially productive, he/she will end up not making money at the end of the day.
3. Spending on liabilities instead of spending on assets: Assets are things that benefit a person financially while liabilities do not benefit financially. Examples of assets are land, real estate, equipment, savings account, investment account, contracts, natural resources, etc. Examples of liabilities are bank debt, mortgage debt, money owed to suppliers, wages owed and taxes owed (Source: digit.business).
4. Reckless spending: When someone has earned or received a large sum of money, it is very easy for such a person to be tempted to spend everything on what he/she wants without budgeting. This is an attitude that if one does not reject, could become a habit. It is important to plan and budget before spending any amount of money.
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Nice one