Why do people live below the poverty line? Or what are the five causes of poverty? This article will explain why people are not living above the poverty line. And also how to fix it if you find yourself or someone you know in that category.
1. PEOPLE SPEND MORE THAN THEY EARN
It is the number one reason most people never rise above poverty. You earn one thousand dollars and spend more every month; you can never increase. Instead, you go deeper into poverty.
People spend more than they earn, more than they make. You see someone walking for a paycheck, and you receive your salary. And You end up spending it before the month’s end; you have to squash the whole thing. You cannot rise from there, so more people remain poor.
Solution:
To live above the poverty line, you have to learn to live within your means. Spend less and ensure you save for the rainy days because it will come.
2. REASON YOU DON’T LIVE ABOVE THE POVERTY LINE IS THAT YOU DON’T TRACK YOUR SPENDING
When you buy something, let’s say you buy something for this week, you have to know where this money is going. You have to check very well to make sure that the money you are spending is going where it is going. Let me share this scenario with you so you understand what I mean by not tracking your spending.
You see, I know this lady constantly; she complains that she doesn’t know where her money gets in. When you ask her, she will tell you, “I make so much money,” but when you ask her where all that money is? Where did all the money go?
She can’t give an account of where it goes; that is it. You must know where your money is going, what you bought, and when you purchased those things. Make sure you note them down because sometimes we do buy something. We forget so quickly; we don’t keep a record of these things.
Solution:
It will help if you track your earnings. Follow where your money is going. If it’s coming, track where it comes from for those with different income streams. That way, you know where the money is coming from & where it is going, so that is the second reason.
Read also: Top 10 Money Management Tips You Must Know To Build Financial Security.
3. ANOTHER REASON YOU DON’T LIVE ABOVE THE POVERTY LINE IS THAT YOU ARE NOT WILLING TO MAKE SACRIFICES
Sacrifices are reading books. They can not say, okay, let me use one hour to read books. I mean again that you see people sit in front of the television for hours watching movies. That time is enough. That time is something; you can change your life by looking into it and adjusting.
They cannot modify, spare, or sacrifice. You know, reducing the number of things they put in, they want to buy everything as they eat. I feel like eating this one, and they go and buy it. No one said you should not eat, but you know sacrificing some things for something is the best.
Solution:
So we must learn to offer our time, actions, and what we eat. The most important one is the time we spend on television and even the time we spend on our phones. We spend most time chatting; in the end, nothing comes in.
4. THEY PRIORITIZE TODAY’S FUN OVER THE FUTURE
Some people want to go clubbing, go this, go dancing, enjoy, you know, all these things are good, but they won’t lead you anywhere.
These things are the things that, when you look into it and adjust from it, you will see your life will change for good. People will wonder what happened, you change, but you only adjusted.
So if you can change yourself, adapt, put, and prioritize having fun over your future. Maybe working hard for the future, working hard for tomorrow, will do you much good, but this is real.
It will do you much good if you learn to prioritize things of the future and walk hard now to enjoy tomorrow. As I said in my other video, WHAT YOU NEED TO BE SUCCESSFUL was what I talked about in that video.
If you want to be successful, go and watch that video and see for yourself; read about these people. They sacrificed a lot, even spending time with friends. That time you sit down, your chat yields nothing; you are wasting time.
Solution:
So it would be best if you reduced things that took your time and utilized the time to focus on the things that will yield to you in the future, which is the fourth reason.
Read also: 7 Great Tips To Achieve Financial Freedom You Need To Know
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5. THEY WANT TO HAVE IT ALL
Here is another reason most people do not live above the poverty line. They want to have it all. “I want to have this!” And they go, I heard this is the best, you go and buy it. I want to buy this is beautiful; you will like it” you go and buy it. They want to buy everything. They want to have everything. But you can’t have everything; you can only have all these things when you have succeeded. You have achieved in life that your hard work is showing.
People see you sleeping in your home, and your account will be.., you know you will hear the alert. But when you have not yet achieved, not still on the way, all you have to do is minimize. As I said, sacrifice is crucial; you can also offer this. Minimize the things you buy.
You want to have it all “You need a car, we need a car in this house, and I cannot be tracking, I cannot be taking a bus, I cannot do this,” you have to adjust to being able to get there in future. If not, you remain there forever and ever, nagging, complaining and in the end, nothing, no good life, no enjoyment. So, we have to look into these things.
Bonus 1.
YOU DON’T LIVE ABOVE THE POVERTY LINE IS THAT YOU DON’T SEPARATE YOUR WANTS FROM YOUR NEEDS
When it comes to this, most people get it wrong because they label everything I need this, I need that, but it is only some of what you need.
There are things you want, and there are things you need. You will know what is required when you learn to separate your wants from your needs. Now want is something you want because you feel like you have the money, but the condition is necessary.
Is it a must to eat food in our lives? Is food a need or want? Some will tell you that if you don’t eat, you will not survive. Yes, not all the time. You will not die when you don’t eat for three days or even one week.
You will still be living. But water is a need; you need water to survive. So there is something that we need in our lives, know the difference between your want and your need. Want is something you want to buy when you feel like you have the money; you want to flirt a bit; that is “want”. The need is a must.
Let’s say is your children’s school fees a must; your kid’s school fees are a must, so that is a need. Once they are going to school, you must pay their school fees is a must. So buying extra clothes is unnecessary even though it is something you put on your body. It is not a need. It is a want because you have but want to buy, maybe to change, is a want.
Solution:
So separating your desire from your obligation will help you so much because many people label everything as I need this, I need that. Still, it is only some of what you need. There are certain things that you need, so the final bonus I have for you is:
(The most important one) BONUS 2:
MANY PEOPLE INVEST IN THINGS INSTEAD OF INVESTING IN THEMSELVES
You are investing in things instead of investing in yourself. You will buy new shoes and a new car, feel like buying the latest phones, and purchase everything for fun, not for business. I mean something that will give you money tomorrow. Still, you accept the stuff for yourself instead of investing that cash in educating yourself.
Doing something that will make you learn and know more is the best. Instead, you buy these things that will not help you develop. Some people are into this; such a life will not benefit you. You will remain poor forever.
So, for you to live above the poverty line, there are many things you need to do and adjust. If you see yourself doing these things, try as much as possible; you know you invest in yourself and educate yourself.
Concluding
You see, we all know how this life is; life nowadays is tempting. Especially now on social media, people try to belong and are into doing what others are doing without knowing the consequences.
Let me share my idea on this so we can adjust. We see successful people, admire them, and want to emulate them. Still, we cannot adapt to their actions to get there.
