5 ways to stay broke

I’m convinced that we play a big part in our future. I trust that God will provide all of my needs but I also believe that faith without works is dead. Meaning I can have all the faith in the world but if I don’t do my part I won’t achieve everything I’m destined to achieve. Dave Ramsey says “if you want to be rich, you do what rich people do and if you want to be broke, you do what broke people do. I’m going to list five things you can do to stay broke. We are experts at blaming our problems on the president, government, our job or other people for our lack of money and reason for living paycheck to paycheck. Maybe we should take a look in the mirror, examine that person and think, “maybe it is me!”

No Plan – There’s a famous quote that says “if you aim at nothing, you will hit it every time.” We all need goals and plans to accomplish those goals if we want to move forward financially.  Without a plan to reach specific goals you decrease your chances of success. Plan to be debt free, plan to stop the cycle of living month to month without surplus and then submit your plans to the Lord. God’s word says to “commit to the Lord whatever you do and your plans will succeed.” (Proverbs 16:3) Make it a priority, today, and map your way out of your financial hole. Anyone who has never made the trip can not drive from Virginia to Kansas without a map, successfully, and you can’t go from a financial mess to financial success without a financial road map.

Lack of Giving – I believe giving should be one of the main reasons to achieve financial stability but we can’t wait until we get there before we start giving. Without a spirit of giving, we develop a spirit of selfishness. Selfishness is concentrating on your own well-being without regard for others. When we are selfish we only concentrate on our problems but God desires for us to be givers. “…for God loves a cheerful giver and God will generously provide all you need. Then you will have all you need and plenty left over to share with others.” (2 Corinthians 9:7-8) You can change someone’s life by giving freely of your money, your time or your love. I believe the more you give, the more you will have to give. Of course, you must balance this with your goals but I do believe “one man gives freely, yet gains even more and another withholds unduly, but comes to poverty.” (Proverbs 11:24)

Living with debt – I reached a point where I realized if I am continuously making payments to everyone that I owe, how will I ever be able to invest in my future. I don’t think we should only save for the future without enjoying the present but we shouldn’t over indulge in our present and ignore our future. Debt is promising your uncertain future wages on today’s purchases. This is the reason Mr. or Mrs. average consumer looks well, drives well and lives well but at the expense of living month to month without the ability to save or having emergency reserves in case of an emergency. I would rather have money than “look” as if I have money.

Doing Nothing – It’s not enough to have information and not use it. “Lazy hands make a man poor but diligent hands bring wealth.” (Proverbs 10:4) At some point I realized if we are going to pay off this enormous amount of debt we would have to sacrifice, get our hands dirty and work. At one point my wife and I were both working 70-80 hours a week but you can’t just do the physical labor and expect to come out of the “just making it” status. You have to set career goals that can position you for higher wages, you have to apply smart money management principles like creating and maintaining a budget, balancing your checkbook, applying all your surplus from your extra hours towards your debt, cut back on spending and most importantly, not going into more debt. Zig Ziglar says “the most practical, beautiful, workable philosophy won’t work-if you won’t.”

Ignorance – Yes, this word is often not used correctly because it doesn’t mean stupid. It means lacking of knowledge or comprehension of a specific thing. Proverbs 4:7 says “…therefore get wisdom, and with all your getting, get understanding.” Many credit card users find out unexpectedly that their rates have increased dramatically or they can legally hit you with late fees by changing the terms or grace periods without notifying you. Some find out when they drive the car home and then look over the paperwork that they are paying more for the car than expected because they negotiated monthly payment rather than total price. The point is to look over everything and read the fine print. If you don’t understand something, ask! You could save yourself hundreds or thousands of dollars by understanding things that deal with your money.

There are many reasons people stay broke. It may be one of the points I mentioned above or it may be something else. My hope is that this will cause you to analyze your money behavior and pin point the areas you need to strengthen. Just because you are broke now does not mean you have to stay that way.