Haha.. We have all discussed ways to make Money, how to save Money. secure your future, and live with Financial Independence.
While we continue to grow, and spread Financial Literacy, todays topic is off the grid, stating 6 easy ways to get broke, so you can avoid them all. 😉 If you wish.
1 . Getting Involved in a Get Rich Quick Scheme
Yes, while your intentions might not be wrong, creating wealth is not an overnight game, not for most! Being part of a Ponzi or Pyramid scheme, where you get money if you recruit people can be your way towards not just wasting away your life savings money, but also the time & effort. Not to mention the legal repercussions that one might face. Want to read more about them click here.
2 . Winning a Lottery
Though it sounds great, those happy hormones ain’t gonna last long. Yes you heard us correct, according to a study more than 50% of Lottery winners end up broke within five years. So next time you play that game, remember its just a game with rules not in your favor. Wanna read more, this is an interesting read I found.
3 . Addiction
Whether its an Addiction to Drugs, or Video Game; Addiction can leave a pretty deep hole in your pocket. Take the Cocaine addiction for example, people start small but with time they end up buying several grams a day, doing that for just a year if you have an average household Income can leave you broke, and not to mention the side effects of it on Health. If you thought, drugs were worse, then gaming addiction is even worst, gamers often neglect aspects of real life, including their finances and job. From being late on a job, to spending recklessly on virtual artifacts like skin, coin, life etc, to getting fired from a job, gamer may lose it all for their virtual life & pleasure.
4 . Buying on Credit Card
If left unnoticed, excessive buying on Credit Card with no full payment by end of every month, can definitely leave you in debt trap. People can easily get from 1 to 5 credit cards, with a limit of around 5000 dollars, thinking they have enough money to buy that extra refrigerator, or that big TV on sale, without realizing the Interest they would be charged if they don’t pay back their credit. Well, gradually this Interest piles up (not to mention some credit cards can charge you up to 25%) leaving you broke!
Now I am not saying its not good to have Credit Card, off course credit card has some great perks but you have to know how to use it. If you want to know more about some benefits read here.
5 . Investing in Penny Stocks
Now you might be wondering, but Salrite you say Invest, Invest, Invest!, well I do!, but not in just random penny stock…
Investing has risk, and in Penny stocks the risk is akin to gambling. With no proper financials to check, not so transparent Business practices, no proper corporate governance, Penny stocks can lead you broke in just few months!
6 . Look Good, Feel Good
All that Glitter is not Gold, all that Plastic Surgery is not worth. Well, its one thing to be in shape, and take good care of your body, and completely other thing to have a cosmetic surgery just to appeal to the larger audience!, or buy that Lambo, designer clothes, that Gucci scarf, those shoes, that no one except you care about! The complete show off.
Thank you for reading. If you want to know What the Rich way truly is, check out – The Rich Way. Have a great day.