This is overly reductive, I know. But for arguments’ sake, let’s assume there’s 3 reasons for being poor.
- You Spend Too Much
- You Make Too Little
- You Think You Are
Now, what can you do about it?
You Spend Too Much
Reigning in spending is a good way to stop being poor. Although not easy, it is almost always possible to spend less.
Even small changes in spending can help, especially when compounded over time. Like canceling all your streaming subscriptions and getting a library card – that could be the difference between having an nice emergency fund at the end of the year, or having to take on bad debt when a fat bill lands in your lap.
Or, you may need to do something drastic, like completely change up your living situation. Housing is generally the largest expense for us Americans. Taking a deep cut in that budget category can make a huge difference if you’re trying to get ahead.
Could you get a roommate or move into mom’s basement for a while? Maybe you can get creative with house-hacking ideas like buying a duplex, AirBnb-ing your place, or becoming a full-time housesitter.
Big or small, we can make changes to how we spend our money – although it might hurt.
You Make Too Little
Making more money is a great way to stop being poor.
“Duh” is probably what you’re thinking. But it doesn’t hurt to be reminded that we can do something about the income side of our financial equation.
Again, not easy, but with some planning and effort, you can work to increase your income. You can scheme how to get a raise or promotion at work, or upskill in your free time. Figure out something that people will pay you for and try it!
Basically, if your current income is simply not enough, work to change it. Don’t be shy. Make a plan, and go after more money!
You Think You’re Poor
Poor can simply be a state of mind.
No matter how much you have, you may feel poor, because of comparison to others, or expectations you have set for yourself.
If you drive a beater, and your co-worker rolls into work with the car of your dreams – you can feel poor. If you expected you’d have a 4 bedroom house by now, and you’re stuck in a tiny apartment, you can feel poor.
But the fact of the matter is, you can manage your expectations and feelings about your financial situation. And ultimately feel better!
A little gratitude for what you do have can go a long way. Putting things into a different perspective, is helpful as well. Your tiny apartment and beater car don’t look so bad when compared to sub-Saharan normal living conditions, for example.
Where to Start
Of course, there are a lot more complex, unfair, and downright shitty reasons for poverty. If you’re suffering under those conditions, I’m truly sorry.
But, for a lot of people, the spending, income and expectations are three biggies affecting their finances. And they are things we can do something about!
So, if your finances aren’t where you want them to be, ask yourself: “Can I spend less? Do I need to make more? Am I realistically managing my financial expectations?”
Start pulling the levers you have available to you in each of these 3 areas, and see if you can’t start living a truly prosperous life!
Where will you start?! Tell me below, I’d love to hear your thoughts.
Live a Life You Love
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