I know the title of this blog post and talking about the explanations for why an individual would haven't any money is pretty straightforward, but sometimes that approach is required if you're getting to face your financial situation more realistically.
I believe the primary thing an individual must do when it involves improving their financial situation, like getting out of debt, is to understand why they're stuck.
If you don’t know what your problem is, then it'll be hard to form a positive change.
Once you confront the explanations for why you're stuck and haven't any money, you’ll then be ready to make a far better decision to get out of your financial rut.
I understand that some things in life cost money, but I think that learning the way to economize and improving your financial situation can help most people reach their dreams.
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You have a lot of time to pay off your debt.
I still remember the person saying something about how I’m young and will enjoy my money more now which I can worry about my student loans later.
UMM, WHAT?!
Why not pay off your debt now?
I still enjoyed my life while I used to be paying off my debt, and I definitely don't think I used to be suffering in the least.
Plus, there are many other reasons to pay off debt now instead of later, and one among the most important is that you simply just never know what may happen in the future. If you wait to pay off your debt and instead spend your money on things that you simply don’t need, you'll fall under a nasty situation. What would happen if you lost your job, found high-cost medical bills, or something else?
You’re Paying for OTT or NETFLIX.
If you are addicted to the ott platform that means you are in a danger zone. Maybe seeing movies online again and again can suck my mind.
By paying for tv once you can’t afford it, you're preventing yourself from saving extra money. This all results in you having no money. Watching tv is not a bad thing but addiction to anything is bad.
When you can stop you don’t want to be stopped, and When you want to stop it you can’t stop it. This is an addiction.
More to know? How binge-watching can have a bad effect on your health.
You treat your MasterCard as income.
Your Mastercard isn't a replacement income source. If you treat your MasterCard this manner, then you ought to cancel your MasterCard as you're going into unnecessary debt.
If you're employing a MasterCard, then you ought to be working to completely pay off your balance monthly so that you're not racking up interest charges and late fees.
Everyone has debt, it is common OH YES!.
Many people compare their amount of debt to what others have so that they're going to feel their debt is “normal.”
An example would be if you're 30 and therefore the average 30-year-old has $10,000 worth of MasterCard debt (I completely just made that number up). You then use this number as a “guide” so that you'll feel easier about your debt.
However, WHO CARES what proportion of debt another person has? How exactly does knowing what the typical amount of debt a random 30-year-old has affected you?
Is that person you?
NO!
So, why would another person’s amount of debt even interest you? That creates no sense!
Just because somebody else has $10,000 worth of MasterCard debt from buying too many clothes doesn't mean that you simply should too. You never know, this amount could also be breaking them on the inside albeit they aren’t showing it.
You believe you deserve the purchase.
Yes, you'll be awesome and think you deserve something, but do you have to really be buying it? simply because somebody else bought a 100 inch 3D TV (or a mansion, nice car, gadgets, purchased a crazy-expensive wedding, etc.) that doesn’t mean you ought to also.
However, you've got no idea how this person is paying for it. Maybe they saved for years, or even they're just putting everything on their MasterCard.
By thinking that you simply deserve everything, you're making yourself haven't any money. Instead, you ought to be realistic together with your financial situation and only buy what you'll truly afford.
You pay an excessive amount on your phone.
Most people overpay for their phone plan.
If you can’t afford to pay your bills, pay down your debt, and so on, then you ought to check out either getting your telephone (yes, this is often possible and a few people do go without a phone) or finding a cheaper cell phone option.
You don’t have a budget, so you've got no money.
If you don’t have a budget or if your budget isn't an honest one, then this will be an enormous reason why you've got no money.
A budget can assist you to realize where you could possibly be going wrong together with your finances and the way to repair a financial issue that you simply could also be having.
Related: Are you creating your financial plan know How to make a budget
You make excuses for why you've got no money.
Everyone is feeling guilty for creating excuses.
Just believe the last time you said “That won’t work on behalf of me because (insert your excuse here).”
As a private finance expert, I hear tons of reasons why an individual can’t economize, pay off debt, live the life they need, reach retirement, and so on.
The biggest problem with making excuses is that this habit ruins you and holds you back in your life, which suggests that you simply may never reach your financial or life goals.
Read further why your excuses broke you and make you Unsuccessful?
Your car is just too expensive.
This is sad especially when considering that a lot of people remove high-interest rate loans to form their car payments. Back when my husband worked in new car sales, he often told me about new car buyers with car loans at interest rates of 20% and above.
If you’re spending an excessive amount of money on your car expenses, then this will cause you to have no money.
I think everyone can purchase a car that they will actually afford. I'm an enormous believer that your total car expenses should be 10-15% of your monthly income so as for it to be affordable.
Why so confuse “wants” with “needs.”
Some items are needed, buttons of the items people buy are presumably wanted. you'll haven't money because you confuse yours wants with needs.
Some think cell phones, massive homes, gym memberships, cable, getting to restaurants, then on are all necessary, but they really aren't. If you can't afford things, then you would like to start cutting these things out of your budget and your life.
You think you'll have time to save lots later.
So many people think that they don’t need to save now because they will save once they are a touch bit older.
Well, what are you going to do if something happens to you or if there's an emergency?
Starting now will assist you to form good financial habits and you’ll be better prepared for the longer term than if you waited.
Learn more at The 6 Steps to require to take a position Your First Dollar.
You don’t have goals, so you can’t economize.
You may haven't any money because you don’t have any goals.
People who set goals are 10 times more likely to succeed in their goals than people that don't. This is often why I think that setting goals and making an idea to succeed in them is so important.
If you’re not setting goals, then you'll not be working towards anything and/or you'll not be motivated to enhance your future.
Read more at the simplest Goal Setting Tips so that you'll Reach Success in 2021.
You don’t think little amounts add up.
You may haven't any money because you don’t think that saving smaller amounts of cash will assist you.
I once overheard someone saying that they don’t economize because they don’t think it matters. So, although they need an additional $100 in their budget monthly, they're going to just find how to spend it because they don’t see the purpose of saving $100.
Seriously, put that extra $100 within the bank and reserve it. After one year you'll have $1,000. Remember that something is better than nothing.
You don’t have an emergency fund.
By not having an emergency fund, you'll be causing yourself to possess no money.
An emergency fund is something everyone should have. However, consistent with a report by Bankrate.com, 26% of USA citizens haven't any emergency fund whatsoever. This will impact an individual negatively and leave them with no money for the days once they truly need it.
According to this same report, only 40% of families have enough in savings to hide three months of expenses, with a good lower percentage having the usually recommended six months worth of savings.
Learn more about this at Everything you would like to understand About Emergency Funds.
You don’t make enough money, so you've got no money.
The final reason why you've got no money is that you don’t earn enough of it.
No, no one number matches all. However, if your expenses are above your income, then you're simply not making enough money. It’s as simple as that.
You either have to make extra money or crop on your expenses. you'll never economize if your expenses are above your income. I do know that this is often easier said than done, but something will need to change if you would like to enhance your financial situation.
Time is money, if you employ all of your working hours on your day job, your income won't increase over time. you would like to earn a passive income which will increase within the future and work for you.
There are many opportunities to earn passive money, for instance with automated trading platforms that even keep trading for you while you’re asleep!
You can study the way to make extra money at:
- 51+ Ways To Make Extra Money
- 9 Work From Home and Travel Careers
- 40+ Side Hustle Ideas to make money #work from home
- How To Find More Time To Make Extra Money
Do you know why you've got no money? What are you doing now to change your life?