The Real Reason Why People Fail Financially (You Probably Won’t Like It)
Last Updated on 08/20/2022 by Nicky
This post might make you mad.
I can’t apologize for that. That’s because I’m not saying this to look down on you or anyone else.
Everything said from this point forward is because I want to help you.
And conversely, this post might not make you mad.
What will determine whether or not you get mad at this post comes down to two major things:
Your mindset when you read the post.
What you decide to do with the information in this post.
Funnily enough, these are also some of the main reasons why the rich get richer and the poor get poorer…
Their mindset.
The decisions they make.
But But But
I can hear the buts coming.
But its societies fault.
But it’s the government’s/president’s fault.
But it’s my families fault.
But it’s inequalities in the system at fault.
I hear you.
I’m not saying there aren’t struggles in life.
I’m not saying life is easy.
I’m not saying life is fair.
I’m not saying that some people don’t have incredible odds stacked against them.
My heart goes out to them which is why I’m writing this post. I want to empower them to believe that they can rise above their current circumstances.
Because guess what?
All of those “buts” come from a particular mindset. When that mindset is changed, it opens up a whole new world of possibilities to you that you didn’t know existed.
Think about this…
Someone can come from the same society, live under the same government, come from the same family, and battle the same inequalities and yet they can still wind up being more successful than the people they grew up with.
Why is that?
Their mindset.
The decisions they make.
Now I’m not dumb, simplistic, or dishonest.
I’m not saying society has no effect on us.
I”m not saying the government has no effect on us.
I’m not saying our families don’t affect us.
I’m not saying inequalities don’t exist.
I’m not saying siblings can’t be raised in the same family by the same parents and be treated differently from each other which would also have an effect on a child.
All of these things are true. And they can have an influence over how you view the world and yourself
But…
At the end of the day, the mindset that we have and the decisions we make with our money are some of the biggest factors that determine whether we will be rich or poor.
(Keep in mind that I”m mainly talking about people in America because that’s where I live and that’s what I know the most about.
Some countries do not enjoy the freedoms we have here.
I’ m not talking about those countries in this post).
And lest you think that I’m some rich person looking down on poor people please know that I’m not.
Not even close.
I only get paid 10 months and don’t get paid a lot in my day job so I’m not rich at all and I would never look down on someone who is poor.
But I don’t have a poor mentality.
I believe that I will succeed and I will work toward that and make decisions to move me toward financial freedom.
So let’s talk about some examples: Here is a list of self-made millionaires and billionaires:
All of these people are self-made millionaires and billionaires.
But another thing they have in common.
They were all homeless at one point.
Again I’m not saying that are should all strive to be millionaires or billionaires. The point is its possible to literally have nothing in this country and still become a billionaire. It’s truly amazing when you think about it.
As a contrast, here’s an article with a list of people who have won a million dollars or more and lost it all.
And here’s an article about celebrities who have gone broke at one point or another.
So if you think, “Oh if only I had more money life would be so much easier/better” you’d be wrong. You can literally have millions of dollars and lose it all.
You can have a little bit of money and use it wisely.
It’s up to you.
That’s the good news and the bad news.
At the end of the day, the differences between those people and us are our mindsets and the decisions we make. The mindset and the decisions that we make about money are a huge part of what will determine our status in life financially.
What can we learn from these examples?
-A poor person can have a rich mindset and make decisions that will propel him to make money.
-A rich person can have a poor mindset (Vince Young, Lottery Winners) and very quickly lose all of their money and be poor.
Just because you get money doesn’t mean you’ll keep it. Just because you don’t have money now doesn’t mean you won’t have it in the future.
-There are a series of decisions that you will make that will determine your financial success and that series of decisions will be based on the mindset that you have when you make that series of decisions.
– A person with a poor mindset might say they don’t have any money to invest or save for retirement.
Yet that same person might buy a carton of cigarettes that same day. If they smoke a pack a day they could be spending $2,292 or more per year on cigarettes.
Does that person really not have money to invest or are they using their extra money they have on cigarettes?
And of course, it’s not just cigarettes. That’s just an example. It could be cable, gym memberships, fancy coffee etc.
These are all things we don’t need but we make the decisions to buy them over using the money for investing, emergency funds, etc.
We would just as easily decide hey I’m cutting cable and using that extra money to create an emergency fund. But a lot of people won’t do that.
Why?
Because they value cable and HBO more than having a financial safety net.
Or maybe they haven’t been taught how to handle money.
Me neither. I took the initiative and learned how to do it.
You can too. Start with the public library.
Or if you’re willing to invest money and time into financial literacy then start with Amazon.
That way you can keep the books, write in them, and refer back to them over and over.
More on books later.
And don’t get me wrong. That’s totally fine if someone would rather have cable over an emergency fund.
If you prefer to have cable over savings (assuming you have to make the choice between the two) that’s perfectly okay.
But just know that in making that choice, when an emergency comes and there’s no money to fix it, you might have to make another poor minded decision like paying for your emergency with a credit card or going to quick loan business which only makes the problem worse.
Unfortunately, one poor minded decision begets another poor minded decision until your life is one long series of poor minded decisions and you can’t understand how you ended up where you are now.
Now, why am I saying all of this? Am I saying this to make people mad or upset?
Am I saying any of this to hurt people?
Am I saying any of this to look down on poor-minded people?
No
I’m saying this to FREE you.
To free you from detrimental destructive thinking.
To free you from doom and gloom “I can’t get ahead” thinking.
To Free you from the “this is my lot in life” mindset.
To free you from the “nothing will ever change” mindset.
To free you from the people (family, friends, and politicians, etc.) who swear up and down that you need the government to fix your life.
You have the power to make financial changes in your life.
But how HOW?!
By changing your mindset which will change the decisions you make which will change what you do.
But how you do that though…HOW?
2 Guaranteed Ways To Turn Your Poor Mindset Into A Rich One
1. Turn off that blasted TV for goodness sakes!
I know I’ve been kinda mean in this post but if I ask real nicely would you please do it.
Okay, maybe you don’t have to completely turn it off but turn it off more. The average American watches 5 hours a day.
That’s 35 hours a week. So basically watching tv for many people takes up as much time as a full-time job.
Just let that marinate.
At least be watching something of substance some of the time.
YouTube has great videos on how to save, invest, and earn more money.
Instead of binge-watching the latest Netflix show, binge watch Dave Ramsey videos.
Here’s one to start.
Disclaimer: Dave’s way “meaner” than me. You’ve been warned
2. Read a book.
3. Read two books.
4. Read three books.
5. Read four books.
6. Did I mention reading a book or 5?
I can’t say this plainly enough. If you want to make better decisions with money (or life in general because the two typically go hand in hand) read books.
Lots of them.
And then do what the books say (sometimes…of course you need to use wisdom when following any advice…including mine).
But What Should I Read To Get Ahead Financially?
1.The Bible
The Bible was written over the course of 1500+ years by over 40 different authors and their advice on money (and again, life in general)?
Spot on (how did they do tha?t *wink*).
Start with Proverbs and then read Psalms. They have tons of wisdom on money. Then read them again. Then read the rest of the Bible. And if you there’s something that you read that you don’t understand, seek understanding.
2.Dave Ramsey’s The Complete Guide To Money
If you read this book and then follow the steps in this book, you will not have (major) issues with money. I didn’t say you wouldn’t have any issues with money but more than likely, if you truly follow the steps in this book, you won’t have major issues with money.
3.True Transformation
This book is short. It’s impactful. It gives you step by step instructions on how to start setting goals and achieving them. It can help you start to unpack some of the negative thinking you have that keeps you from succeeding or even trying. This book isn’t about money but about mindset which we have talked about a lot today.
And
P.S. I wrote it 🙂
4. Rich Dad, Poor Dad
This book can completely change how you look at money, at business, and at your career or job. How do I know this?
Because it did that for me? It helps you see the true difference between being poor-minded and rich-minded
5.Cash Flow Quadrant
Okay so I know I keep saying this will change how you see money but I’m for real ya’ll. This book will change how you see money.
Or at least it can if you’re open to it. It’s described as a book for people who “want to make significant changes in their lives and take control of their financial future”.
Does this sound like you? Then you need to get this book.
6. I Will Teach You To Be Rich
This is the one I’m reading right now and so far so good. I’m on chapter 3 right now and let me just say this…
Somehow this boy (okay he’s a man but I digress) got me, a hater of all things credit, to apply for and receive AND use a credit card.
Like word up this is real life.
I can’t believe it myself but it’s true. I am so anti-credit card and yet here I am with one and using it, all within the span of 2 weeks of reading chapter 1.
But he makes a compelling case for them…sorry Dave.
Once you read the book you’ll see what I mean.
And of course, I only recommend a credit card if you can truly handle the responsibility.
The only reason I felt comfortable getting a credit card is because I hate them so much.
If I didn’t it would be a wrap.
Are You Mad Or Will You Take Action?
I want you to know that I’m for you. I want you to win.
I want you to untangle whatever is holding you back…this dangerous self-defeating knot of ideas that life can’t get better or change for the better. That there is no hope.
All lies.
You can have a different life from the one you have now. Or you can’t.
That’s the good news and bad news.
It’s up to you.
But that’s where the power lies.
Don’t Forget To Download Your Free Financial Freedom Printable
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