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"Why Am I Poor?" 5 Reasons Why You Are Poor

5/27/2015

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Bundles of cash - here are the reasons why you are poor
Note: This post is largely inspired by T. Harv Ecker’s book, Secrets of the Millionaire Mind. It’s filled with tons of great insights and ways to literally re-program your mind for wealth. I strongly suggest you give it a read.

Being poor sucks, but it doesn’t have to be that way. The good news is that, if you know some of the reasons why you’re so poor, you can change your life. Here are some of the reasons why you are poor.

Reason #1: You believe that life happens to you.

Rich people understand that they create their life. Poor people believe that they are creatures of circumstance and luck. Rich people know that their habits and decisions culminate in their life – there’s no point in blaming, justifying, or complaining. Poor people moan and complain about what “happens to them”, effectively making them a crap magnet. You can either be rich or you can be a victim of life, but you cannot be both.

Reason #2: You get paid based on your time, not your results.

Rich people get paid based on their results, while poor people exchange their time for money. On the surface, a steady paycheck doesn’t seem all that bad. Your bills can get paid and you know exactly what you’ll have each and every month. The problem is that since your time is limited, this strategy places a ceiling on your income. A salary doesn’t mean “security”, either. Here’s a direct quote from Secrets of the Millionaire Mind,

“Living based in security is living based in fear. What you’re actually saying is that ‘I’m afraid I won’t be able to earn enough based on my performance, so I’ll settle for earning just enough to survive or to be comfortable’”.

The richest people either work on commission or work for themselves. Let’s face it – you could bust your butt for a salary and not get a dime more. Make sure that you get what you’re worth.     
                                                              
Reason #3: You hang around other poor people.


It’s often been said that you are the average of the five people you spend the most time with. Analyze your time – are you spending too much of it with other broke people? You should surround yourself with people that will help you learn and grow. If all you do is hang around people just like you, what do they have to offer you? Can you learn something from these people? They can probably tell you what happened on TV this week, but they can’t tell you a thing about building wealth. Cut the cord!

Reason #4: You focus on working income, not net worth.

 A J-O-B (Just Over Broke) isn’t going to cut it. Rich people focus on net worth, while poor people focus on their income. Even rich people had to work hard for their money, but usually it is a temporary situation. Poor people work hard for their money forever, while rich people get to a place where their money works hard for them. The more your money works, the less you have to work. That’s the beauty of passive income.

Reason #5: You won’t get out of your comfort zone.

Repeat after me: “If I never get out of my comfort zone, I will never get rich”. The middle class wants to be “comfortable”, but the rich understand that feeling uncomfortable about situations typically means they are growing. Here’s another quote from the book:

“Nobody ever died of discomfort, yet living in the name of comfort has killed more ideas, more opportunities, more actions, and more growth than everything else combined. Comfort kills! If your goal in life is to be comfortable, I guarantee two things. First, you will never be rich. Second, you will never be happy. Happiness doesn’t come from living a lukewarm life, always wondering what could’ve been. Happiness comes as a result of being in our natural state of growth and living up to our fullest potential.”

The next time you feel the fear or discomfort, realize that you’re doing something right. Don’t let them overpower you. After all, they’re only feelings, with no power to stop you. 


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14 Ways To Maximize The Value of Your Car Before Selling (Infographic)

5/14/2015

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Reselling your old car isn't a whole lot of fun. There are ads to create, pictures to take (and re-take) and prices to negotiate. When you factor in all the costs of labor and your time spent, the cost to get rid of your old car often isn't as much as the price you sell it for. Luckily, there's ways you can increase the value of your car without having to put forth much effort.

A mid-range vehicle could increase up to $2,000 in value with just a couple of simple repairs, according to the Car Care Council. The people over at
OldJunkCar.com
created this infographic that illustrates the easy repairs and fixes you can do in order to increase the final sale value. Some of them -- like what positives to highlight when you advertise -- are of no cost at all. Let us know what tips you think give resellers the best chance at getting maximum value.

14 Ways To Maximize The Value of Your Car Before Selling

14 Ways To Maximize The Value of Your Car Before Selling – An infographic by the team at Old Junk Car
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7 Things You Need to Know About Money In Your 20s

5/12/2015

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Too many investors say they wish they could go back in time and change the way they handled their money. You can make sure you don’t make those mistakes in the first place! My biggest inspiration for launching this site was seeing how clueless my peers were about finances, so by knowing these seven things, you will have a major edge over all those other 20-somethings.

1. Find your passion. Here’s the cold, hard truth. You can find a career or business that pays well, but you will always lose out to the person who is more passionate. You should choose a career that will let you reach your full potential based on the gifts you want to share with the world. If you’re doing something that you enjoy, you’ll stick it out when the going gets tough, and that’s when the real money starts rolling in.

2. Focus on saving first, then your income. Your primary wealth building tool is your income. However, you can’t build any wealth if you’re squandering every penny. Here at Personal Finance Genius, I recommend saving at least 20% of your income. If this will be too sudden of a change for you, I recommend that you read “The Easy, Painless Way to Save More Money Each Month”.

3. Start early! Compound interest works miracles. If your company offers a 401(k), sign up ASAP. If there’s no 401(k) then funnel some of your paycheck into an IRA. If you invest $200 per month starting at age 25, you’ll have over $500,000 at age 65, provided a 7% return. If you wait until age 35, you’ll end up with less than half that amount.

4. Choose your partner carefully. If you decide to get married or settle down, be sure to do so with someone whose money values match your own. If you’re a thrifty saver, your life will be a living hell if you’re married to someone blowing up your credit card statements. Speaking of credit cards…

5. Understand how credit works and use it responsibly. Some financial gurus will advise you to abolish credit cards completely – to cut them up and never use them again. I respectfully disagree. Be sure to comparison shop for your credit card and pay off the balance in full each month. Although a credit score is just an indicator of how well you repay debt, it’s a critical tool for areas like securing a mortgage. A higher credit score can save you thousands upon thousands of dollars over the life of your mortgage. Although if you can just pay for your dream home in cash, that’s cool too.

6. Develop a budget and constantly improve it. A budget is a plan for your money where you dictate where every dollar will be used before you get it. Sticking to a budget requires discipline, but planning ahead virtually guarantees that you’ll hit your financial goals. Once you have a budget, you should always look for ways to improve it. Do you qualify for lower insurance rates? Get them! Don’t watch TV anymore? Cut your cable! You’ll have more money to put in savings.

7.  If you have student loan debt, enroll in automatic monthly payments. This is super helpful advice to avoid getting hit with interest and other fees by the monstrous loan companies. It’s also a “set-it-and-forget-it” type deal. You don’t have to worry about making the actual payments – you just have to worry about keeping money in your checking account. 

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