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Why Am I So Poor? 8 Reasons You’re Not Being Smart With Your Money
Why am I so poor? I budget. I plan. I coupon. Yet, every month I have less and less in my bank account. Why???? If this sounds like you, keep reading to learn 8 reasons why you’re not being as smart with your money as you think. These will boggle your mind! Keep reading…
1.) You are paying retail
Ok, so what does this mean. Well, did you know you can get almost ANYTHING at discount or wholesale prices? Yes, it’s true. Does it mean it’s convenient? Maybe not always but that convenience will pay by padding your bank account at the end of the month. Here are some ways to stop paying retail.
- Shop online: Amazon! Hint, hint. You can save TONS with Amazon’s online shopping deals. By the way, if you aren’t a Prime member, the benefits are too crazy amazing and long to explain here but the affordable annual fee makes it SO WORTH IT! I mean free one day and two day shipping, among other perks. Grab it!
- Shop in bulk: If you aren’t doing this, you are MISSING OUT! So serious on this one. Do you know I pay the same price for a 30 roll of toilet paper at a bulk store as I do for a 12 roll at a typical grocery store. Crazy, right? Plus, 30 rolls! Come on! Those babies last us months and months. Other savings: bakery goods are way cheaper, paper towels, pet food, produce, anything frozen, etc. Examples of bulk stores: Costco.
2.) You are couponing the WRONG way
Ok, so couponing is cool. You’re off to a good start. But, are you doing it the right way?
Have you ever seen those couponing shows? Where the stay at home mom takes 3 grocery carts full of food to the checkout and pays $2.47 for it all. You kinda have to have that mindset.
You are shopping according to the coupons, not to your menu or meal plan. This takes some dedication because you are no longer having spaghetti Tuesdays if those meal ingredients are not on your coupons. That’s the first thing.
Next, you gotta have a LOT of coupons. You can get most for free. There are some paid subscriptions that get you more coupons. You can graduate to that level in the future once you have the hang of the basics. Paying for coupons? Yes, it can make sense moneywise and double or triple your savings in some cases.
Ok, so check out these blogs on couponing. Study them. Learn. Take all you can so you can start couponing the right way.
3.) You aren’t educated about personal finance
Don’t worry, a lot of people are in this boat. Heck, the only reason I know as much as I do is because I was a banker for a decade. I had formal training to learn about debits and credits, what an interest rate is, how to budget, etc.
It’s really hard if you have no idea what you’re doing. So, educate yourself. There are a ton of free courses out there to help you. There are even more blogs to help out.
4.) You don’t pay yourself first
What does this mean? Before you pay anything else with your paycheck. Pay YOURSELF! This means stash away some money in savings. This is a good way to build up a nest egg and really grow your savings account. It’s easy if you have direct deposit. A lot of employers allow you to split your direct deposit into multiple accounts. Allocate an amount (any amount you wish) to go to savings, and the rest to checking. This way you never see the money to be tempted to spend it. It completely takes things off your hands.
5.) Why am I so poor? You think in the NOW instead of in the future
It can be tempting. You have a big vacation you want to go on. You see an awesome TV you’d like to welcome as a new member of your family. You want to splurge. You want to treat your spouse or get your child an amazing gift. You want to throw a huge party or celebration. You want a new car.
These are all NOW wants. You need to think of FUTURE needs. Examples:
- Your car breaks down. Do you have money saved to pay for repairs?
- Your A/C goes out. Can you pay a repairman?
- You get a flat tire and need to replace it.
- There’s a death in the family and you need to travel to attend a funeral.
These are all real world examples that are very possible. Almost all of them have happened to me. Did I stress? Heck no. Why? I had a savings account to handle those expenses. I mean, it’s stressful enough to deal with a home repair or death in the family. Imagine if you could not handle it financially. More stress!
Create an emergency savings fund. Put aside at least 6-12 months of monthly income. More is better.
6.) You’re spending too much on your car
How does this happen? Do you have a newer car? Do you have a truck or SUV? Are you car payments more than 10% of your monthly take home pay?
It’s called refinancing. And, you can usually do it at any point in time with no penalties (with most banks). Look at lowering your payment and interest rate or paying off your car loan early with an auto refinance.
Your car is financed on an auto loan at 8% and your monthly payments are $450
You can refinance with another bank on a new auto loan at 4% and a monthly payment of $250
That’s a savings of $200! Let me repeat. $200 saved PER MONTH! This is golden!
Take a look and shop local banks to see what offers are out there.
7.) You’re spending too much on housing
So you live in a fancy apartment complex with valet trash pickup, fancy amenities, a 2 bedroom apartment with granite and marble and all the bells and whistles. Your rent is $1300/month. Ouch!
It’s called living within your means. Can you afford it? Sure. But then you ask yourself: why am I so broke?
Because you are living in an apartment that is 50% (or more) of monthly take home pay and you feel house poor. Is your place nice? Sure. But, are you broke or do you feel broke? yes.
If you look around, you’d be surprised at deals you can find for a more standard housing complex, maybe with less amenities but similar in size at a fraction of your current rent. Shop around!
8.) You invest in stuff instead of yourself
Go back to school! Get formalized training or certificates. This could mean a promotion in your future. Higher pay. More job opportunity. Make you better at your current job.
Is the saying true, it takes money to make money? Absolutely!
Why am I so poor? Invest in yourself instead of things.
Whew! 8 reasons why you are so poor. Hopefully these reasons make sense. Comment below to share your thoughts. Anxious to hear what you think!
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