Money is a very important thing in life and lack of it makes life difficult. When people don’t have money at all or they don’t have enough of it, it becomes a problem. Just as no money has problems, too much money also has its own challenges. In this series, I want to share with you seven money problems of the poor and seven money problems of the rich. Let me begin with the seven money problems of the poor.
- They don’t have enough
People are mainly said to be financially poor when they don’t have money or enough money. Not having enough of anything one needs is bad especially when it comes to money matters and being able to meet one’s needs and responsibilities. In life, there are 3 levels:
- Not enough
- Just enough
- More than enough
Not enough is the problem of the poor and it is a problem that needs to be solved for a meaningful life.
- Borrowing and indebtedness
Due to not having enough, borrowing money to meet up with needs becomes a part of the life of the poor and debt becomes another problem. Being poor is bad enough let alone being poor and in debt. Many people are in the debt cycle and are struggling to come out to zero level. Zero level is poverty but being in debt is below zero level. Your story can change if you know what to do. My book, “Pathway to Wealth” will be a great help.
- Rising cost of living
Inflation and rise in cost of living has become part of life but the poor suffer it more because they see the buying power of their little money fading away with time. While the poor are crying over the price of bread, the rich are the owners of the bakery. While the poor are crying over the price of fuel, the rich are the owners of the fuel station. It is time to reposition yourself so that inflation and rising cost of living will not deflate your destiny.
- Make more money and pay more tax
Taxes are one of the revenue generated for the government and a statutory responsibility of every citizen. While every citizen should ensure they pay their taxes, poor people face a problem of paying more taxes with every additional income.
- Poor people MAKE MONEY – PAY TAXES – SPEND THE REST
- Rich people MAKE MONEY – SPEND MONEY – PAY TAX ON THE REST
Entrepreneurship helps the rich do this but because most poor people rely on salary, they get taxed more as their salary increases. There are many advantages to having your own business and this is one of them.
- Fear of emergency
Most poor people if not all have a problem with fear of emergency because they don’t have any saving or backup. Life is full of all manners of emergencies that show up from time to time. Some are financial while others are not because money cannot solve all the problems of life. When one is rich, financial emergency is easier handled but it is not the same with the poor. You must have heard of saving for the rainy day. It is to cover life’s emergency.
- Bad or no financial adviser
To create wealth or succeed in any area of life, we need to have the right team and a good financial adviser is one person or group that one needs in life. One problem of poor people is lack of a financial adviser or having bad financial advisers. I have noticed that poor people often seek advice from other poor people and I wonder why they think someone on their level can give them helpful information to change their level. Seek financial mentors to help you have a growth journey in life.
- Not having enough in retirement
The money problem of the poor goes beyond their working life and persists even till retirement and old age. Not having enough money in retirement is a problem the poor also face and that is why poverty is mostly generational because instead of leaving an inheritance for their children, poor people make life difficult for their children by increasing their responsibilities which now make their own journey to wealth more challenging. The dependent and breadwinner mindset of the poor help perpetuate poverty.
These problems need not be your problem if you know what to do to create wealth. I strongly recommend you order for our wealth creation pack which includes my book, “Pathway to Wealth” and 20 CDs. See you at the top.