1. Spend more than you make
Actually if you only do #1, you won’t have to worry about the other 9. This is the easiest way for anyone to become poor. It doesn’t matter if you make millions or hundreds each month, the same principle applies.
2. Lust after what you don’t have
Desiring something better is not a bad thing, but lusting after it is. Buying things you can’t afford, because you are not content to wait until you can afford it is a great way to stay poor.
3. Never give to anyone
It seems counter-intuitive, but keeping everything to yourself only causes you to have less. Proverbs 11:25 says “The generous man will be prosperous, And he who waters will himself be watered.”
4. Don’t pay attention to where you money goes
From talking to people about budgeting I find that most of them say they that when they started budgeting it seemed like they had a whole lot more money. The reason being that they didn’t know where it was all going before they were budgeting. I had a similar experience myself. I said, and really believed, I knew where my money was going, but once I started a budget, I was amazed at how much more money was available.
5. Get a loan for everything… cars, a new bedroom set, a vacation ***BONUS: use credit cards with a 25% interest rate!
Using cash to buy things (especially items that depreciate in value) is the key to breaking out of the “poor” cycle. Ever notice what part of town you typically find the rent-a-centers? It isn’t where the wealthy people live. As Kiyosaki said in his famous book, Rich Dad, Poor Dad, the poor (and middle class) buy their luxuries immediately and on credit. The wealthy wait, save up and buy it with cash.
6. Wait for the perfect time to start saving
As with most positive life changes we can make, there never seems to be a perfect time. Now is always better than later.
7. Follow the crowd
The older I get, the more I realize that the crowd is often wrong. The crowd is also mediocre. I often have to remind myself the reason I am driving an old (paid off) car, while some of my friends are driving brand new (borrowed) cars is because I am patiently waiting for the reward of avoiding debt. As Dave Ramsey says, “you have to live like no one else today, so you can live like no one else tomorrow.”
8. Don’t worry about the little things, they don’t really add up
God seems to be into the little things. I think that is why the Bible says He uses the simple things to confound the wise. Everyone looks to the big things and the flash-in-the-pan, but it seems to be the little things that make the biggest changes. I don’t think it is any different in our financial lives. I mean how else could a family making $35,000 each year retire with millions and a $10 million lottery winner end up bankrupt?
9. Invest your money in things that you know nothing about
We should know where our money is going and why it is going there. Don’t just buy a stock because you got a “hot tip”. Buy a stock in a company that you understand how they make money, who their customers are, and if there is evidence suggesting that the business will continue to thrive.
I have invested in things I absolutely didn’t understand and I will just say it is a bad idea all the way around. It is always a better idea to hold your cash in a money market account until you understand the investment. Then, once you understand, pull the trigger.
10. Waste stuff – money, food, time.
I remember hearing that “someone who is wasteful, is not really thankful.” I am not sure if that is always the case, but as stewards we have a responsibility to minimize our wastefulness. Jesus even had the disciples pick up the scraps after He miraculously fed 5000 so that none was wasted (John 6:12).
Do you have any to add to the list?
Related posts:
- Poor Richard’s Almanack Giveaway
- Giving to the poor
- If you want to be wealthy, act like it!
- The Widow’s Mite and how to help when you need help
- How do you pay off a car?
- Classic budgeting with Mvelopes Personal
- Why spending money wisely is a life-skill
- Cash for your Old Appliances?
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Wow, great list. I agree with all of those. I’ve done most of them and paid sorely. I’m on my way out of it now and wish I could’ve learned lessons the easy way
“Don’t talk about your finances with your spouse”…..
This one isn’t as extreme as the others, but I think it makes a huge difference in your spending habits, etc. when you are kept accountable by someone else–especially your life partner!
Great post. All so true…..now just to implement it all in my life!!!
Great list. I would also add – buy the biggest/best/latest everything.
This kind of goes along with numbers 4, 8 and 10, but another one to add is: “Don’t pay your bills on time.” That way you can pay late fees and higher finance fees and it will take even longer to get out of debt.
I loved this post. Thanks.
Carolyn
yea, did I mention that I too learned most of these the “hard way”
But, I guess it is better to learn late than never 
No shocker spending more than you make is number one. Sad thing is even though it’s so obvious, it’s still true. the others are more avoidable, or in some way fall into this one category. All debt buildup comes from spending more than you make.
Good, solid top 10 list!
Another way to become poor? How about being a financial enabler to a spouse or child (co-signing loans, giving excessive money to them, etc.).
Great Post!!
Kinda of a reflection post when you read it and see that you did many of these over the last few years, and strengthens your will to say never again.
I blogged Monday about How to lose your office job. I gave step by step instructions on how to get fired. It seems like it would be a great addition to your list. It was all done in fun of course. With all the negativity right now we could all use a laugh.
Wow, A lot of want to stay broke. Thanks for the post!
Thanks for the points, would have to agree with them all. The whole world’s economy seems to have become one giant ponzi scheme, all that it happening now is that everything is adjusting back to what it is really worth. I remember growing up in the 60s and 70s, we never went hungry, had a comfortable home, but never the luxuries that we have all come to expect today. So how how have we suddenly been able to afford the luxury lifestyle, it seems only by borrowed money that has to now be repaid. Maybe we will start to learn that we invest what we have saved, not invest borrowed money to create leverage and in the process inflate the share and housing market and cause eventually a financial crash. Some get in and out of the markets quick enough to make some money, but eventually someone has to pay the inflated price, which they sadly eventually realise is over valued, because they can’t pass the debt onto some other sucker. I bought my house for $45,000 21 years ago, why should it have a “value” of $350,000 today, my wages have only gone up 4 fold in 21 years, but the house has done about an 8 fold increase! Thats why housing prices will have to continue to fall. But this has happened in Australia, I’m sure it is different elsewhere!
#3. Never give to everyone.
I agree with the rest of the list but this one is wrong. Some folks give 10% charitably every year. That leaves a hole that takes a very very good investor to overcome.
Proverbs 11:24
“There is one who scatters, and increases yet more. There is one who withholds more than is appropriate, but gains poverty.” (WEB)
Having friends whose idea of fun is always spending money on something to do.
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I’ve had to “train” my friends to find places for lunch that were $10 & under so that people who didn’t make so much money could hang out with us (including myself). We would then go to a museum afterwards that was by donation, or for a nice walk in the park.
Hi. I am writing an essay , commenting on the question, “Am I responsible for helping those less fortunate?” I must chose a side, yes or no, so I would have to chose no. My only problem is defining why I chose so, and that I am right.
This topic covers how to become poor, but not how to become un-poor. What if u are already poor? How could you give if you have nothing? Give time, oneself? In America, you could go to donation centers and receive help, I’ve seen a bum become famous for street-side advertizing. Does this mean that I am not responsible, because he could make it from the woods and into a home? And if he is crippled, physically or mentally, would one be able to work? My mom said of the homeless American Veterans, (Veterans make up 30% of the homeless in America), you could give them a home and they would leave it. Id have to reason that on a macrosopic scale i cannot feasibly help. Niether can my country or Bill Gates. However on a microscopic scale i can help those on my path, and not worry if they throw it away or use it to become greater. Jesus said that there will always be poor among us. And ultimatly God is responsible for those who are poor.