In this time of economic uncertainties many of us struggle on how to survive, many businesses have shut down and laid off lots of workers due to this pandemic making the situation even more harder for poor people to make both ends meet. Many of us are really hard working but do you not wonder why despite of how hardworking we are, there seems nothing make any difference,still we can't get ourselves out of poverty. So what keeps poor people poorer? Well there are lots of reasons why, but for now let us just cite some important factors that keeps poor people getting poorer. And here they are:

Poor mindset.

Mindset is a way of thinking,this can greatly affect our behaviour. Poor people has poverty mindset. Say for example, someone with poverty mindset sees extra money(tips,bonus) as an opportunity to spend it on liabilities. While someone with rich mindset sees it as an opportunity to spend it on assets that can generate him more profit. Here is picture of poor mindset vs rich mindset:

Trading time for money

This means that we work for salary or wage. working for salary will never gonna make us rich, it steal much of our precious time that we could have used to improve ourselves. The system we are in right now is designed to pay us as little as possible , that is why some people that have multiple jobs still have trouble managing thier expenses. well, having multiple jobs is not that bad, after all, we should not stick to just one source of income, more jobs more income, and more income the more likely we can save money. In trading your time you create income but you are not creating wealth. Poor people create income rich people create wealth.

Not saving money

There is a thing that we call 50-30-20 rule,and here is how it works. When you recieve your salary, 50% of it must be allocated to cover your needs, 30% goes to wants and the remaining 20% must go to savings. Savings can be further broken down into two, that is, 10% for emergency fund and 10% for investing. If all of your salary is used only to cover your needs then that will be a great problem. Savings is very important coz it will give us a head start on getting ourselves out of poverty.

Not investing

People saves money for variety of reasons, and people with poor mindset are very likely to spend thier savings on liabilities that won't generate any income at all, such as expensive watch, expensive celphone etc... But people with rich mindset will spend thier savings on assets that will make them more profits. They buy dividend stocks, mutual fund, real estate, bonds, Vul, cryptocurrency like BCH. These investments will give them passive income thus they are not trading thier time for money anymore, they are not creating income but creating wealth.

It is not yet too late, make a financial plan, invest in yourself, make your goal. Hard work and proper financial literacy will help us break free from poverty.