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7 (Surefire) Ways To Remain Poor

Do you think only money makes money? Wrong.
If it were true, you wouldn’t have had the countless rags-to-riches stories.

Do you think that some special talent makes money? Wrong.
Many talented persons have not made any decent money. And yet there are many average persons who have become millionaires.

Do you need to be in a particular country or place to create your millions? Wrong.
You will find both rich and poor people from the same locality, same environment and, in fact, even the same house.

Do you need to be in a particular vocation or career to make your millions? Wrong.
Many people are doing the same type of job or are in the same business. Yet only some succeed, while many others remain poor.

Listed below are 7 common habits that make people poor. Many people are unfortunately afflicted by these bad habits. Despite earning tons and tons of money, their bank balance and net worth is often zero. I hope you aren't one of them.

1.  Save your money in bank fixed deposits
Suppose you invest x rupees in a 1-year bank fixed deposit. Then, after one year, the net amount that you receive in your hand will most definitely be less than x. Inflation and taxes would have eroded all the interest earned during the year... plus also a part of the capital.

2.  Save your money in insurance policies
Same story repeats with insurance policies too. Suppose you pay a total premium of y rupees for around 10-15 years. Then, when the policy matures, the maturity amount will be less than y. With outrageous fee-structure and inflation — together with the safe and sanitized investments — you are certain to receive less than y rupees.

3. Pay only the minimum amount due on your credit card
Suppose you do not clear your credit card bills before the due date. Instead, you regularly roll over the outstanding balance after paying the minimum amount due. Well, in that case, you are liable to pay around 30-50% p.a. as interest charges. Such exorbitant interest costs will most definitely put you on the road to penury.

Are you among those who are income-rich but wealth-poor?

4.  Live your life on credit
Not having enough money to fulfill your desires is not an issue at all. Credit cards, personal loans, EMI financing are among the many ways to buy what you want... TODAY. Why wait until (uncertain) tomorrow? If the total EMIs that you pay every month is more than 50% of your take home pay, you may be able to barely manage your day-to-day expenses with the balance. With excessive debt burden, you will never have surplus money to invest and create wealth for future needs. 

5.  Buy the best
Buying top-end phones, top-end cars, top-end gadgets, top-end dresses, etc.? If you can easily afford it, without damaging your finances, sure go ahead. But if you are doing it, just to show-off to your friends and neighbours, you are sure to hit the bottom-end of your finances.

6.  Buy gold jewellery
Investing in gold jewellery is not a good option, when compared to the Sovereign Gold Bonds or Gold ETFs. You pay margin on gold price both at the time of buying and selling. Thus, your effective price of gold is much higher as compared to the international price of gold. Plus, of course, the massive making charges. These will eat into your returns and you will rarely make money by investing in gold jewellery.

7.  You 'often' eat out
I don't need to tell you that outside food is generally 3-4 times more expensive than home-cooked food. Also, being usually junk and unhygenic, it invites medical problems. Hence, you need to additonally pay for the medical expenses. Great! A single punch provides double hit to your finances.

If this is the way you live your life, financial doom is awaiting you.

An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

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