Top 9 Reasons Why So Many People Are Struggling Financially

Some people are always struggling to making ends meet and every month they end up with more month at the end of the money. Here are the top 9 reasons why these people are struggling financially and what you can do to turn this around for yourself.

1. They spend more than they earn.
This one is pretty obvious, but this is the number one reason why people are struggling financially. If you spend more than you earn, you will not be working towards a wealthy future.

2. They don’t have a budget.
It is said that where performance is measured, performance improves. If you keep track of what you spend each day, you will become aware of where your money goes. That makes it easier to sort out the necessary costs and with that you can create a budget for each month, week or day.

3. They don’t pay themselves first.
Maybe you heard this before, but what does it mean? If you want to put a certain amount of money in your savings account, when do you do that? Right after you got your paycheck or after you have spent almost all of your money for the month? If you “pay yourself first” you make sure that you put a certain amount of money away before you pay all your bills. Try to make this automatic, for instance schedule to transfer a certain amount of money to your savings account right after you get your paycheck.

4. They don’t have a financial plan.
Know exactly what amount of income is needed to pay the necessary things like food and mortgage and try to have at least enough money in your bank account for 2 months ahead. This is your plan for financial security. It will give you a great feeling of security to know that you don’t have to worry about being able to pay the bills the following months. After you have achieved that you can adjust your plan towards more financial freedom.

5. They don’t follow through on their plan.
Like mentioned above, you first need a plan. But if you don’t follow through on your plan, the plan is worthless. If you throw your plan overboard at the first financial setback, you will probably experience more financial setbacks in the future. If you follow through on your plan you don’t have to worry that much about financial setbacks.

6. They don’t make their money work for them.
If you always have to work for money, instead of money working for you, you will be struggling for ever. If you invest your money where you get a good return on your money and re-invest this return, you will build an ever-increasing amount of money that is working for you. Think of it as money seeds that grow into money trees.

7. They have limiting beliefs about money.
Beliefs like “money is the root of all evil” won’t help you on your way to prosperity and wealth. Write down all the beliefs you have on money and analyze if these beliefs will help you or not. EFT is a great tool to work on those limiting beliefs. You can find more information on EFT at emofree.com. Carol Look has written a great book on EFT and limiting beliefs about money in her book Attracting Abundance with EFT. This book is available at http://AttractingAbundance.com.

8. They don’t get financial advice from professionals.
Make sure you get advice from people who know what they are talking about and who are also practising what they preach. Warren Buffett said the following about Wall Street, but the same could be true about financial consultants: “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.” There are also lots of financial consultants around who barely get by themselves, but do give other people advice on how to arrange their finances.

9. They give responsibility to other people.
As mentioned in the previous point, it’s good to listen to advice from experts. But don’t give them the responsibility to make it all work. You are responsible. No one will ever watch out for your money as well as you do.

To your financial success,

Gerber

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