Wednesday, 31 May 2017

The Mentality Difference Between the Rich and the Poor

It is not amazing to find a town that is dominated by wealthy people having poor individuals who are struggling to get what to eat living in its neighborhood. This situation is common in most town, and the big question is, do these poor folks learn a lesson from their condition that they can use to make their tomorrow better?

Mismanagement of funds leads to poor decision making

Most poor and homeless people don’t have control over what they should be controlling. The generous well-wishers, organizations or churches care for them, and their families and what they have to do is to wait and see how things happen the next day. This is a dangerous path and what can be regarded as gambling with life. If you lack the power to control money, then you can't make the basic decisions.

The Bad Luck Mentality
Some poor people believe that their situation if because of ‘bad luck.' What these people call bad luck is not a bad luck because if the same case happens to someone else, the person will handle it without any financial pressure. An individual who doesn’t save will not be able to pay off medical bills or handle any emergency that may come along the way. Living paycheck to paycheck can make you land into debts and ruin your financial status. You can handle disasters easily if you are financially prepared.

Bad Debts Limits Chances of Wealth Creation
Getting out of debts is a journey that needs financial discipline. Some poor people with bad debts seem to have made up their minds to die poor. Some of these people fear to have a bank account or even a well paying job because they believe that their creditors can get them. It is crucial to avoid large debts, but if they are unavoidable, then they should be handled head on. 

Everyone Can Save
Both the rich and the broke have careless expenses. People buy things they don’t need and forget to put some money in the saving basket. A homeless man with huge debts may fear to save $200 or any small amount of money with the perception that it’s just a drop in the ocean. Everyone can save; you don’t need to have more than enough to start saving.

Have Good Financial Problems
The rich have good financial problems. Some of these problems can be where to get money to start another business, how to help others realize their potential, or even how to improve their businesses. Most of the homeless people have professions that they can build and become better again, but their problem is not starting small and using what is at hand. If you are not in the group of the poor and the homeless, then you are in a good position to give a piece of advice to the poor.

You can come out of poverty. Financial discipline is pretty important if you want to mend your financial status. Lack of financial preparedness can make a small emergency ruin all your plans and land you in debts. You need to have some savings for you to stay debts free.