Someone once said, 'poverty is not a state of lacking finance, true poverty is lacking adequate finance knowledge'. Looking closely at the statement, one can certainly agree that it can't be more true.
A lot of people are deep in poverty, not because they don't make a good amount of money, but because they lack money-sense. Some people's lack of financial literacy leads them into spending all they earn without making plans to save some of their earning.
In this write-up, you are going to learn about 6 important things you must do if you seriously want to get out of poverty.
1. Bad Debt.
Bad debt is simply a loan collected to buy liability, or a loan acquired to clear other loans.
Think about it this way. When was the last time you acquired for a loan? What did you use the loan for? If it for purchasing wants like clothes, bag, shoes and the likes, or you used the loan to pay up another loan - That's bad debt.
There's no way you want to look at it, using a loan to pay up another loan will only get you deep in loan. Because for every loan you acquire there's always interested to be paid. Those interest might not seem significant at a go, but once they get to pile up - that's when you know you have actually been undermining your financial success.
Not taking any loan is way better than taking loans for insignificant reasons. If you must take any loan, you should make sure it's for investment purposes, and that you have figured out a way of paying it back.
2. Frugal Investing.
Some people are slightly above the average class when it comes to financing, not because they don't set aside money for investment, but because they invest only a little fraction of what they earn.
Take, for instance, someone who earns #50,000 per month and invests only 5% of his earnings (#2,500/month). In a duration of 5 years, he would have saved only #150,000. If inflation to be put into consideration, his investment won't yield up to something he would be proud of.
On the contrary, assuming he had invested 20% of his earnings, by the end of the fifth year, he would have invested a sum of #600,000. Isn't that impressive?
To get out of financial difficulties. Invest. Invest big in something you really believe in. So that when it eventually starts to yield you'll be much more delighted.
3. Piece Buying.
Are you the type of person who usually buy in unit? If you are fond of buying in pieces; even when you know it costs more, it high time you stop.
Buying things in bulk will save you more funds. You might not think you could save more by buying in bulk, but when you start buying in bulk you'll discover that it's much cheaper and cost-effective. Buying in bulk will save you arrears like transportation.
A costly habit of poor people; is buying in the unit. Unlike the Rich, the Poor usually get recurring items in units (costing them more than what they could have paid, had it been that they buy in bulk).
4. Solo Income Source.
It is a known fact that, for one to be financially buoyant, he has to have multiple sources of income. Even the richest people on earth have more than one source of income.
Poor people are often with one source of income, even when they know their source of income isn't going to get them the life they desire. If you're serious about getting out of poverty, build multiple sources of income. Regardless of the amount you earn from your business; develop other streams of income.
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