The poor stay poor by blaming others for their financial situation which some would refer to that is playing “victim”. Poor people stay poor when they fail to take responsibility for their own destiny. By playing the victim it allows them to blame everyone around them for their situation. They will blame their parents, their families, the schools, the rich, the government, the “man” and oftentimes will convince themselves that the system is rigged against them. They feel like they are under attack all the time. Blaming others for your financial situation is not the remedy. Yeah, it’s true that sometimes things happen that are beyond our control. But, the way that you react to a situation will determine the outcome. We all are on this journey called life, yeah we may get knocked down, but it’s the ability to get back up that will make you stronger. But there are so many people who fail to plan accordingly and then blame others where they fail. It’s like this IF YOU FAIL TO PLAN, YOU WILL PLAN TO FAIL.
A LACK OF FINANCIAL EDUCATION
There are many poor people with a rich mindset but are financially poor due to circumstances. And there are many trust fund babies with a poor mindset. Martin Luther King, Jr. states: “It’s all right to tell a man to lift himself by his own bootstraps, but it is a cruel jest to say to a bootless man that he ought to lift himself by his own bootstraps”. In order to have financial security, financial independence, and the basic knowledge of personal finance you must have those tools in place. It is hard for someone to get ahead financially if they have never been taught or even been given basic knowledge. Low-income families face many barriers to financial well-being. It is necessary that these barriers be addressed, or they will continue to prevent financial stability. Much lower- and middle-class people do not understand the negative ramifications of payday loans, credit card debt, and defaulting on obligations. I will challenge you to visit an upper-class community to see the business that is zoned for their neighborhood. I can assure you that in the typical neighborhood where there are a higher number of upper-class you will not find many title loans and payday loans. When that all that you are exposed to when a lower-income individual needs financial assistance, that seems to be their only option.
THEY ARE CONSUMERS NOT SAVERS/ INVESTOR
People with the Poor Person’s Mindset are the type who live paycheck to paycheck. They never invest their money, they rarely save their money, and will often resort to paying for things with credit. The poor will buy things that will not add value to their lives. An asset is something that, in the future, can generate cash flow for you. Assets make money. Anything that takes money out of your pocket is a liability. I met a guy that always had free time, so I asked him how I was like him. He simply told me, don’t work for your money, have your money to work for you. Think of assets of being fruit trees that continue producing harvests year after year. On payday poor people tend to buy liabilities like your TV, furniture, and other personal properties. These things are just sitting around leaking money. Instead, it would be best that poor people began to invest in assets that produce an income such as stocks, rental properties, real estate crowdfunding projects, bonds, mutual funds, and other investment accounts.
LACK MEANINGFUL RELATIONSHIPS
Poor people tend to have the mindset of “I scratch your back, you scratch mine”. Poor people do not seek to build relationships based on trust, shared values, and mutual respect. People with a rich mindset help others with no expectation of anything in return. Poor people compromise their reputation to make a quick buck. They don’t (or don’t care) about the consequences of your actions/decisions. Start making new friends who have a rich mindset. Go to a local meet up group and meet some people you can learn from. Be the dumbest person in the room. Make connections with smarter people and you’ll all win. Smarter people make smart people even more successful. A rich mindset celebrates the successes of others. It embraces the competition and often befriends it. You have two choices, tear down another person’s success or be inspired by the example.
For the most part, people in wealthy neighborhoods don’t buy lottery tickets — at least not for daily games. People in poor neighborhoods play much more frequently. The lottery is a tax on the poor. The money is going to the state without much of a personal return on it, and a very low probability of winning a jackpot. The odds of actually winning the jackpot are horrible. Your chances are better to get struck by lightning (which 1 in 12,000) than actually winning the lottery (which your odds are 1 in nearly 300 million). The scratch-off tickets are even worse! Think of the lottery this way: A lot of people voluntarily put money into a pot, and it is redistributed, at random, to just a few people. But if you’re already desperate and unable to afford even the most basic needs, then that tiny probability of digging yourself out of a hole is better than nothing. I’ve been to gas stations where it seems to be a group of lower-income people sitting around playing numbers. If the lottery is your game plan to get out of a bad financial situation STOP, you will see a better return on your money by investing that money or evening saving it in a money market account.
Remember that being poor is a mindset. Challenge yourself to have a rich mindset! What are some traits that you feel that keep the poor, leave them in the comment section below? Click here to subscribe and click here and here for more videos on ways to save, make money and enjoy life on a budget. Remember that being frugal isn’t about being cheap, it’s about being resourceful.