Sometimes being broke is a matter of circumstance. We lose a job, suffer a major medical crisis, or weather through an agonizing divorce.
But sometimes being broke is simply a matter of making poor choices. People find themselves penniless because they’ve become proficient in speaking the language of poverty. They internalize wealth destroying beliefs and recite devastating poverty messages. These poverty messages are basically money lies.
“I deserve it”
You’ve work hard, spent endless years in college or participating in other training. You’ve made sacrifices too numerous too count in order to get where you are. And often no one appreciates the long endless days and nights you spend on the job.
So sure, you may feel like you “deserve” your financial indulgences.
But in reality what you truly deserve is an emergency fund, a nice retirement account, and the peace of mind that comes with being debt free, – all of which you’ll never get treating yourself to everything under the sun.
“It’s on sale”
Yes, broke folk marvel at the fact that they’ve snagged that special deal. It’s a sign of ultimate achievement, – 40% off the flat screen, 65% off those sharp pair of shoes.
Never mind the item was probably made in China on the cheap. And forget the fact that you already have a closet stuffed full of shoes, clothes, and everything else under the sun. How could you refuse? It was a once in a lifetime deal.
But remember the golden rule of retail: No matter how good the sale, it’s not a deal if you don’t need it.
“I’ll pay it off at the end of the month”
Isn’t that what everyone says? Sure you have good intentions, but by the end of the month something else always comes up. The car needs an oil change, your property tax bill comes due, or your microwave goes on the blitz. Inevitably some other emergency or expense gets in the way and your best intentions go by the wayside.
Here’s some simple but effective advice: If you can’t pay cash don’t buy it.
“You only live once”
Yes you do only live once. But why not live a life free from the stress of bills and credit card debt? It’s all right to splurge once in a while, but living it up constantly only ensures you’ll live life broke.
“The monthly payments are only …”
Monthly payments are a retailer’s best friend. Yes, that monthly payment may seem low, but you’ll be making those low monthly payments for years and the interest grows like a cancer consuming your financial well-being.
“I need it for work”
How often do we rationalize the purchase an expensive suit or designer shoes as a necessary part of our career advancement? Yes, we tell ourselves we have to look the part. No we can’t drive a broke down Honda. A young professional needs that brand new BMW. Funny thing, most bosses are more concerned with job performance than with what you drive or wear.
“I don’t have enough money to save”
How is it that we can find money for everything else in life – cable television, eating out, shopping, movies – but savings always get pushed to the side? As an African proverb warns, “Save your money and one day your money will save you.”
“But it’s free”
“Free” is one of the best marketing traps ever invented. Inevitably there’s always a catch. The “free” item on the late night commercial carries a hefty $29.95 shipping and handling fee. The “free” month’s gym membership is more than offset by a $89 application fee, while buried in the fine print of the “free” credit report offer is a $9.95 monthly fee for credit monitoring service you didn’t even want.
In life there is no such thing as “free.”
“Debt is simply a part of life”
It’s amazing how our grandparents and great grandparents made out just well without credit card debt. And while many of us will make more money than our grandparents ever dream of, unlike them, we’re up to our eyeballs in debt.
“I’ll always have a car payment”
It’s commonplace for us to chain ourselves to debt in order to purchase something that loses value as soon as we drive it off the lot. And that purchase will continue to lose value for years. But remember, most cars built these days will last 200,000 miles or more. The question is how many of us will feel the urge to buy new wheels long before that?
The surest way to stay broke is to buy a new car every three or four years.
“You only get married once”
Have you ever seen a couple spend $30,000 on a wedding only to divorce long before the debt has been paid off? It’s not a pretty picture. There’s nothing wrong with enjoying that special day, but we don’t have to start a marriage on a super-sized foundation of debt to do it.
BMWK, what poverty messages have you found yourself reciting lately? What are some of the things you’ve heard that keep people broke?