Reasons why people struggle financially

If everyone wants to be rich and financially successful, then why isn’t everyone rich? The answer to this question is not simple. You see, there are a lot of circumstantial reasons why a lot of people are poor and struggling. It could be because they had no mentors or they didn’t have access to good education. Emotional issues can also affect a person’s performance in life and business.

Being poor is a state of mind. There are lot destructive behaviors, ideologies and mistakes that are currently anchoring a lot of people from achieving success.

In this article, we are going to be looking at some reason why a lot of people struggle financially.

People set impotent goals

Most people are unsuccessful not because they set lofty goals and fail to hit them, but because they set petty and unchallenging goals. If your goals are easy to achieve, then you have to raise your ambitions and standards. You need to have the drive and determination to go further than those around you.

On the other hand, don’t set unrealistic goals that are impossible to accomplish. Instead, set goals that will push you above your comfort zone. The right goal will help you become a better person and secure a better future for you. The proper goal will bring you riches.

Subscribe to ‘the secret’

The philosophy outlined in some books often do not yield any result. For example, the philosophy outlined in the book- “the secret” has led a lot of people astray. According to the book, the best way to achieve success is to go to a quiet place and sit down and imagine yourself receiving a check with a big number written on it. If you believe in what you imagine, the check is going to show up at your door.  Wait! Does this actually work? NO!

If you believe in this philosophy you are going to struggle in life. On the other hand, if you work hard and take continuous action to achieve your goals, you will become something in life.

Unable to run a business

You don’t have to feel bad or ashamed of yourself because you don’t have business experience. The truth is that nobody was born with business skills. Someone has to teach you how things are done. You must be very careful when choosing your mentors.

 

 

Final note

These are by no means the only reason why people are poor or struggling financially. Do some research to find out more.

How Technology is Changing the Finance Industry

Technology has shaped and changed a lot of things in the modern man’s life. One hugely impacted area has been the finance industry. They are many ways in which technology has changed how the financial services sector operates.

  1. Financial services are more accessible. Mobile service operators, for example, are branching into mobile money and have garnered a lot of popularity. So much so that billionaire and Facebook founder Mark Zuckerberg took a special trip to East Africa looking to scout potential new opportunities to take advantage of mobile money. We also see financial institutions going mobile with apps and USSD codes, issuing loans through mobile networks operators and more.

  1. Cybersecurity has become everyone’s issue, not just service providers. With multiple areas to log in to, applications, ATM and credit and debit cards, the average user is more responsible for making sure they safeguard their information and passwords. This has also caused banks work overtime to secure all those methods of payment and customers’ information. Pre technology, to secure your premises would involve asking your local locksmith, such as: https://fusionlocksmiths.com.au or a security service provider to ensure you were secure. Now a cyber security breach would make customers mistrust banks and leave them to their more secure competitors. And the word customer here applies to both their retail and corporate clients whose information if compromised could have a catastrophic effect on the banks’ operations and reputation.
  2. The creation of more IT related jobs with changes to the hierarchy. A bank’s IT department has essentially become financial experts themselves and very well respected for all they do on the regular. Banks handle a lot of sensitive information and these departments are always working to protect it all, monitoring everything and accounting for both internal and external threats.
  3. Most things have moved been digitalized. A few years ago when banks stored their data in a room, they hired guards to protect their files and they feared the occasional break-in in their branches. Currently, most of it has shifted into the virtual systems and enterprises are more concerned about large-scale attacks. And with the ushering of automated systems, from tellers to digital record keeping, there are more threats to assess and prepare for. If a leak occurs, a lot more than money is at stake.
  4. The phenomenon is known as the internet and more specifically cloud technology has opened a new world of opportunities for banks to operate all over the world. As a result, new financial hubs have been opened and business is now being conducted on a global scale. As more players take advantage of these opportunities, more data will be shared across these networks and this will significantly increase the attack surface area.
  5. Another huge change is the growth in various infrastructures to keep up with the growing number of clients’ demands and concerns over data and network security. With operating in many countries and increasing its customer-base come a lot of revenue but at the price of always having to update infrastructure to keep up with the demand. Banks are now proactively investing in IT infrastructure to make sure they are not vulnerable to internal or external attacks.

How to Get Out of Debt

Getting out of debt is something most people struggle with. People get into debt for various reasons. Sometimes it’s absolutely necessary to take out a loan to deal with situations that pop up suddenly like accidents and losing your job. While at other times, people just invite debts upon themselves by poor life choices like overspending, vacationing on loan and more.

Whatever the reason, it doesn’t matter what is done is done. What you should be focusing on is getting out of the debt hole. If you have no clue where to start, help is here.

Find out how much you owe

Everything has a starting point. The first step is finding out who and how much you owe in order to organize your finances. Make a list of all the debts you owe, including the 200 dollars your friend loaned you, but for some reasons, you ‘forgot’ to pay back and tally them up.

Create a debt payoff plan

Once you have the exact figures, map out your pay off debt reduction plan. Determine which debts to pay off first. But it’s always advisable to start paying off the huge debts that are, the loan with the highest interest rate. Redirect all your extra cash in paying that loan first and you’ll be shocked at how much money you will be saving at the end of every year.

After paying off that loan, focus again on the next debt with a higher interest rate, and the next until the very last one.

You can as well choose to settle the small debts first and then move in on the loans with the highest interest rates. This method makes you feel like you are making tangible progress and motivates you to stay on track.

Stick to the plan

Once you’ve settled on the plan that you see fit, STICK to it. It’s very easy to give in to temptation, but if you want to get out of debt, you need to sacrifice. You can start with;

  • Changing the behaviors that got you in that tricky situation.
  • Creating a budget & sticking to it.
  • Tracking every cent you spend.
  • Looking for ways to earn more money.

Financial Tips for First-Time Home Buyers

Buying your first home can be an exciting experience and at the same time, overwhelming. You might have done an extensive research on the do’s and don’ts, but still get saddled with the reality on the ground.

But before making a buying decision, ask yourself these questions;

  • Am I ready to buy a house?
  • Is buying a house the best option?
  • How much do I need to buy a home?
  • Should l pay cash or get a loan?
  • Do I have enough money to make a down payment?
  • How much house can I afford?
  • How is my credit score?

Are you ready to take the plunge?

Buying a home is not something you decide overnight. It’s a huge investment, so you need to evaluate if you are financially and emotionally ready to buy a home.

Is it the best option for me?

Buying a home isn’t always better than renting. You should weigh your options first. And also remember, money isn’t the only factor that is put into consideration. Things like location, lifestyle, marital status, convenience, flexibility should also be taken into account.

How much do I need to buy a home?

The price of the house isn’t the only amount involved in the buying process. Other costs include;

  • Down payment.
  • Contingencies like Inspection and appraisal.
  • Closing costs such as title charges, settlement fees, lender fees.
  • Prepaid expenses.

Cash or loan?

Both options have pros and cons. If you decide to pay cash you won’t be tied down with monthly repayment and have a peace of mind knowing you are the owner of the house. But on the other hand, you’ll; miss an opportunity to improve your credit score, sacrifice liquidity and tie all your money in one asset.

#Tip:  To get the best mortgage rate, compare rates from multiple lenders.

How much do you have for a down payment?

If you cannot afford to pay cash, how much have you saved for the down payment of the house? Generally, the mortgage standard is a 20% down payment. If for one reason or another you can’t come up with that kind of cash, you can still buy a house with a conventional mortgage loan. But for you to qualify, you must have a steady income, a fair credit score and a realistic debt-to-income ratio.

But always remember your credit score plays a vital role on how much loan you can qualify for.

How much can you afford?

Before you start house hunting, figure out which house you can comfortably afford. This is perhaps the most important thing you should think about before making any hasty decisions. It’s also best to get pre-approved by your mortgage lender before going shopping.

Reasons Why you are Still Stuck in a Financial Rut – And How You Can Fix Them

There is nothing more frustrating than getting stuck financially.  What’s even more frustrating is seeing your friends and family making financial progress while you are still stuck in the same place year in year out. But why is it so difficult for you to move ahead financially? Here’s why:

Poor saving habits

When you don’t have a consistent saving plan, staying stuck is bound to happen. Saving is like paying yourself for all the effort you put to work. Make a habit of rewarding yourself every month without fail, and you will see progress.  Even if you don’t make enough money, sacrificing a little won’t kill you.

Bad adopted habits

These are bad habits picked up from maybe your dad or a friend. If, for example, your dad had a history of misusing his and other people’s money and lying about where the money was going, it’s likely that you may also follow that pattern. But you don’t have to go down that route; you can still resist that temptation and learn from your dad’s mistakes.

Once you figure out the incentives that are driving your bad habits, it would be easier to get rid of them.

Trying to match the lifestyles of others

One of the reasons why you could still be stuck in a financial rut is trying to keep up with other people’s highlight reels. Just because your friend is always on vacation doesn’t mean you have to go as well. Sometimes the pressure of keeping up is too intense and you end up taking a loan to finance your vacation/lifestyle.

If you want to stop living from paycheck to paycheck, don’t give in to pressure to spend cash you don’t have. You can start with; creating a budget that works for your lifestyle, setting boundaries, making choices that align with your values and resisting the urge to keep up.

Setting unrealistic expectations

Sometimes setting unrealistic expectations can make us go downhill very easily. Once you don’t achieve these expectations, you deem yourself as a failure. And the little progress you had made will sink as well. Hence, you don’t even see the need of trying anymore.

Set achievable goals, but be careful not to limit yourself too much if you want to get ahead financially.

5 Reasons why You Will Never Become a Billionaire

Billionaires aren’t born, they are made. Well, okay, maybe some of them are born in the rich family. However, born rich doesn’t mean you will stay rich. Just like born poor doesn’t have to mean you have to be poor your entire life.

Today we will discuss homemade billionaires. These people do thing differently. They are different because they’re not trying to be the same as others. They don’t follow rules but create their own rules. They don’t pay attention to other people’s opinions but listen to their own inner voice.

Anyway, these aren’t the only determinating characteristics of someone who became billionaire alone. Keep reading and find out the other qualities of these people and follow their steps. If not, you will never become a billionaire.

You have no ideas and dreams but you want to make big money

People often don’t know what to do with their lives but they know they want to be rich. It doesn’t work like that. In order to achieve your dreams, you must have a dream first. In order to realize your ideas, you must have an idea first.

People who don’t know where they’re going, never get anywhere. Make sure you know what you want and be precise about your goals. Billionaires are successful because they’ve achieved their dreams and realizes their ideas in order to help the world. Before you start a war with life, make sure you know what you’re fighting for. Otherwise, you will lose from the start!

You have no proper and detailed plan to work by and make big money

Having a proper and detailed plan is crucial to achieving what you want and make big money. Start small. Make small steps and be patient. Follow your gut and if your plan A fails, have a backup B plan. If that plan fails, don’t forget you have the other letters of the alphabet. And if those plans fail too, turn to the Chinese alphabet but never give up! Losers aren’t the people who’ve lost a few battles but those who’ve given up the war!

You neglect your talent and work something you hate and despise

If you’re not doing what you love, you’re wasting your time and energy. And you’re certainly won’t make big money. It’s simple as that. Find what you love and use it to transform your life. Be passionate about your work and money will come.

You hurt and take advantage of others to achieve your goals

Building empires over someone else’s ruins never work. If your goals require you to hurt and take advantage of others, you need new dreams. Instead of hurting people, your dreams should help them in some way, inspire them. Otherwise, what you build will never be successful. And if it becomes successful one day, it won’t last long!

Your only focus is money, money, money

If you only focus is money, then you’re losing your time. Your dreams should realize you as a person. They should improve your life and make you a better person. If you’re only interested in money, you will never become a billionaire.

Now, Check out What it Takes to Be a Billionaire!