7 Avoidable Reasons People Struggle Financially


I know you’re wondering what’s with this title and I can explain. You see, many people struggle financially but very few know why. Well, after analyzing the mistakes of those who seem to be financially stagnant, here are 7 reasons you or someone you know is struggling to get head in the money game!


Reason #1: They don’t have money to invest

I know that you’ve heard the saying, “it takes money to make money” and while this isn’t the rule 100% of the time, there is no doubting the fact that having money helps foster further financial prosperity. You see, one of the best ways to achieve financial success is through investing but you can’t invest your wishes and dreams but rather only money instead.

Unfortunately, most broke people have a hard time covering their bills and staying financially afloat so the thought of having money left over at the end of the month to invest is a pipedream. And as this cycle of barely getting by continues over time, their chances of getting out of this rut continue to diminish. This is why the gap in wealth continues to grow because those who have money and can invest continue to see their wealth rise over time while the less fortunate people in society are stagnating at best or regressing in their financial states.

Therefore, if you or someone you know is struggling financially, you must do everything you can to piece out some money every month to invest. This is truly the only way you will get head.


Reason #2: They must take money now rather than holding out for more

I think we can all agree that coming into money is a great thing but for those who are broke, this income is extra important. As I already mentioned, broke people tend to struggle with day to day expenses which constantly puts them in a position where they are in dire need of cash. Unfortunately, this need for more money holds them back greatly in their wealth building journey.

For example, if you’re broke, you don’t have the luxury of holding out for an offer from a new employer that may pay you a much better salary because you can’t afford to miss even one paycheck. Alternatively, you may have to work two jobs which detracts from time you could invest in learning a new skill that could improve your income earning potential dramatically. In essence, when you’re broke, you have to take quick wins rather than holding out for more lucrative long-term rewards and again this is what creates the divide between the rich and the poor. The rich can hold out for better jobs, can afford to work for free for years to build a profitable business or simply forgo money now to invest that money for later years because they are in the position to do so and this is why their wealth multiplies over time.


Reason #3: They don’t have time to think of ways to make more money

As you probably know, the world doesn’t stop for anybody. Every day, we are moving about — working and doing whatever needs to be done to make money to get by and in some cases prosper. Unfortunately, if you currently find yourself broke, you probably can’t spare any of those 24 hours to think of new ways to make more money.

You see, broke people tend to work multiple jobs which keeps them perpetually pre-occupied. There is only enough free time for them to worry about how they are going to pay their bills and no time that can be devoted to finding a solution to help them out of their financial conundrum. Now, if you are currently working multiple jobs then of course continue to do what you need to do to get by but understanding that part of becoming financially successful requires time to think.

Wealthy individuals are known to carve out time each and every day to consider new ways of making money or in other words, solutions to their money problems. They pay attention to the needs of fellow individuals and try to come up with a solution and generally the more problems you solve, the more money you make. Every booming business in itself is a solution to a problem. Take for instance, canned foods, it is a solution to the inability to preserve foods for a long period of time; shoes are a solution to walking barefoot and stepping into puddles or on sharp objects. If broke people had the time to become more attentive, like the rich, they could easily improve their financial position, but until then they are likely destined to continue to struggle financially.


Reason #4: They buy things to look rich because they know they will never be rich

This may come as a surprise to you but most companies prey on people’s desires to become wealthy because many people lack financial aspirations or the know-how to achieve them if they do exist. Unfortunately, most peoples financial aspirations outpace the work they are putting in to reach their lofty financial goals and as a result they are falling well short and must supplement their desire to be rich by buying things to look rich.

In order to look rich, they buy expensive clothes, the latest electronics and of course travel to exotic places because these are all things that rich people do right? The worst part is that many broke people try and justify their attempts to come across as being rich. They say that they need to buy that expensive watch or suit because they want to appear professional but that can definitely be done without breaking the bank. In fact, rich people or other individuals you actually want positive attention from will not judge you based on your material possessions but who you are as a person and what value you can bring them so spending to impress is rather futile to begin with.

Not to mention, most of the wealthiest people on earth don’t even spend a lot of money to look rich. I would bet you’ve never looked at the outfits of Warren Buffett, Bill Gates, Elon Musk or Mark Zuckerberg and thought “wow, they must have spent a lot of money on that outfit!”. It’s not that they can’t afford to spend a ton on looking rich but they don’t because looking rich doesn’t have any value and if you’re broke, you have a simple choice to make, do you want to look rich or be rich?


Reason #5: They think the only way to make money is through a paycheck

One thing that most of the financially stagnant people I’ve observed over the years have in common is that they put all of their income eggs in the 9 to 5 basket. If they’re not collecting their salaries, then they are not earning money at all and this is one of the reasons why one of the biggest things holding them back financially. You see, jobs used to be a very reliable and lucrative way to gain an income but with companies tightening their budgets and the economy being more uncertain than ever, earning a salary has less value than it used to. This is why the rich expand their income streams beyond their 9 to 5. They dabble in various businesses and investments that can supplement what their employers pay them.

What many people don’t often realize is that their employers really have no incentive to make their employees rich. That’s why they try and get away with paying them as little as possible. I mean, why do you think companies are always fighting against the increase of minimum wages? Unfortunately, when you rely on this means of making an income as your sole source, the chances of you ever achieving a large income are slim and as you are well aware, the more income you make the more options you have to use that money to save and invest which are the true drivers of wealth accumulation.


Reason #6: They build other people’s dreams and not their own

Have you ever noticed that its typically the owners of businesses who become rich and not their employees? This is because when you’re helping someone build their dream, you are never going to be rich. You see, as a founder, yes you are taking on more risk but you are also yielding greater rewards and typically these rewards stay at the top and are rarely shared with those below. Unfortunately, most broke individuals spend their entire lives building other peoples’ dreams and not their own. They slave away for 40 hours a week building businesses that someone else is profiting from while they collect their measly raises.

What’s worse is that beyond building someone else’s dream from the inside, many broke people also support others financial progression as outsiders. For example, have you ever noticed that everybody has something to say about other peoples’ businesses? For example, “Oh the food doesn’t taste good”, “Their building is quite small”, “They should have a functioning website”, “It is too expensive”. If you have noticed it, another way broke people build other people’s dreams and not theirs is by playing the role of the customer. Of course, everybody is a customer to another business from time to time but people who are broke are customers much more often than those who are well off.

And as a customer, you are typically spending money and this is resulting in your financial down spiraling. In short, if you want to stop being broke, then stop building someone else’s dream. Build your own business, be the boss of your own side hustle and stop being a customer of every business around you.


Reason #7: They don’t set money goals because of how little they have

Having little is not a reason to forgo setting money goals and targets. Unfortunately, those among us who are not flush with cash think they will toil in the paycheck to paycheck lifestyle for the rest of their lives so the effort of setting money goals is futile. However we all have to start somewhere when striving for financial prosperity no matter how little we presently have. What people who are currently struggling with their finances don’t realize is that money goals still serve them a great service now and into the future. In the short term, they can give you the motivation you need to dig yourself out of financial disparity even if that means setting and achieving a goal of saving $5 a month. Hitting these micro goals can help you gain financial confidence and allow you to feel that not all hope is lost in your quest to a better financial life.

Moreover, broke people don’t usually realize that the better they are with setting money goals with the little money they have, the better they will be at handling financial situations when more money in involved. In essence, if it takes you 10 years to become financially stable and you are now routinely saving and investing a good amount of money, you will also have had a decade of using good financial habits, like setting money goals, that will further support your financial progression.

I think that regardless of your current financial position, you should have some short, medium and long-term goals. If you’re presently broke, maybe a short-term goal is to reduce your credit card balance from $20,000 to $15,000 by the end of the year. As a medium term goal, you may have the goal of becoming debt-free and in the long-term, your goal is to begin investing $1,000 a month into the stock market. Whatever goals you set, they will act as a roadmap to where you want to eventually be and the better you are able to follow this map the higher the chances are that you won’t be broke for much longer!

And there you have it, 7 avoidable reasons people struggle financially!