11 Steps to become Broke For the Rest of Your Life

What is it like to become Broke? You don't have to inherit money, win the lottery, or even be the next Bill Gates or Warren Buffett to become financially secure. With a little bit of knowledge and a lot of hard work and discipline, almost anyone can accumulate sufficient wealth- perhaps even high- to enjoy the creature comforts of life. Broke people stay broke because THEY TALK TOO MUCH. God gave us all two ears and one month for a reason, which means we should do more listening and LESS talking. The funny thing is that broke people seem to know everything and want to tell everything they know, which is often nothing.

Step 1. You Quit School: 

"Education is the most powerful weapon you can use to change the world," said Nelson Mandela. Your parents nagged you about the importance of getting an education. Well, guess what? They were right. But you do is the opposite quit. The difference in lifetime earnings between a typical high school graduate and an average college grad with a bachelor's degree is staggering. Over a 40-year career, a worker with a bachelor's will earn R1 million more than a worker with just a high school diploma.

As you mull over what to study, what majors are more likely to lead to a lucrative career. (Hint: Consider studying finance, pharmacy, nursing, or anything computer-related.) Merely going back to school doesn't guarantee a bigger paycheck.

Step 2. Spend Too Much:

Many South Africans live beyond their means but don't even realize it. Whether you are looking for a job or are happily settled in a position, you must be smart with your money. No matter what situation you are in, thinking about the future when it comes to finances is vital. We understand how difficult it is to manage your money correctly, so we've developed this list of tips to keep track of your spending.

Make shopping lists and stick to them

• When you do go shopping, make a list of everything you actually NEED. If you stick to it, you won’t end up making impulse buys.

 Plan your meals for the week

• Choose your meals for the week and make sure that their ingredients overlap. For example, if you will be needing tomatoes for a curry, plan to have a homemade pizza the next night where you can use up your leftover tomatoes.

 Pack a lunch the night before

• To avoid purchasing lunch when you’re starving and more likely to overspend, pack a lunch from home the night before. Make a bit more dinner and add leftovers to your lunchbox.

 Useless airtime

• Make use of free messaging services and instead of sending SMSs or phoning, send emails.

Step 3. Save Too Little:

If you're like most folks, your savings habits could improve. The idea that you can save too much has widespread appeal because most people prefer to enjoy their incomes now rather than keep them for retirement. Saving for retirement is a lot like having an insurance policy. You will never need it in an ideal world, but if the day comes when you do, you'll be glad you have it available. Saving for the future may be even better than an insurance policy. If you don't need the amount collected to pay for basic needs during retirement, you can spend it on life's little luxuries or donate it to your favorite charity.

Step 4. Carry Too Much Debt:

Take a minute to calculate how much you spend on weekly debt payments. Pull out your credit card statements and other financial reports, tally your minimum debt payments, and then compare this to your monthly income. In a perfect world, debt payments should not exceed 36% of your gross monthly income. But if you're spending 50% or more on monthly debt payments, it's time to make some financial adjustments.

Step 5. Hardly Working:

The next time someone asks, "Are you working hard or hardly working?" don't just laugh off the question. In fact, the answer may be that you are hardworking and all the poorer for it. It's not in my job description attitude will inevitably lead to small paychecks and poor career prospects, says Tom Corley,

So, to work brutally means making a significant effort at your work and dedicating copious energy.

Example: She works hard during the week but plays hard on weekends.

 Therefore, hardly has the opposite meaning of complex and reduces the intensity of the action.

Example: He hardly works and should change his work habits before he loses his job or barely has time to see his family. Hope you get what I am trying to explain.

Step 6. Have Bad Habits: 

Dry smokes, you like fast food, and you only run if someone's chasing you. So your health isn't excellent, but at least you're having fun. Your finances aren't unhealthy because bad habits are a significant financial drain. And there's nothing fun about that. GetRichSlowly's Roth says that most people he knows who struggle with money have many bad habits.

Step 7. Make Impulse Purchases:

We've all been there: You're standing in line when something catches your eye and put it in your cart without thinking. One industry survey found that about 1 in 5 supermarket shoppers make impulse purchases at checkout. The occasional pack of gum won't break the bank, but multiple unplanned purchases will, warns Jeff Rose, a certified financial planner and creator of the Good Financial Cents blog. It's fantastic, he says, how often he hears of struggling financially due to uncontrolled spending.

Step 7. Play the Lottery:

You always buy Powerball and Lottery tickets, hoping to strike it rich. Dream on. The odds of winning the grand prize are 1 in 50 million. Yet, while researching his book Rich Habits, Corley discovered that 77% of those who struggle financially play the lottery weekly. An R500 per-week lottery habit adds up to R26000 per year wasted. In contrast, he found that just 6% of economically successful players play the lottery weekly. Why? Because successful people don't count on luck for their wealth

Step 8. Make Minimum Payments:

Do you know how much you owe? There is a high possibility of paying less your debts. As a result, many made minimum payments without fully appreciating the interest implications. But consider this: If you send in just the monthly minimum (2% of the balance) on a credit card with an R5,000 ratio and 15% interest rate, it will take 32 years to get rid of the debt, and you will pay nearly R8,000 in interest on the original R5,000 balance.

Step 9. Lack Goals:

If you're not rich, you probably wish you were. That's natural. Yet there's a big difference between a wish and a goal, says Corley. The wealthy individuals he surveyed for Rich Habits consider a goal to be something that requires action. However, of those surveyed by Corley with household incomes of $35,000 or less and liquid assets of $5,000 or less, only 5% said they had ever set annual financial goals; only 2% had spent a year or more working toward a goal.

Step 10. Hang Out With the Wrong Crowd:

Change your Friends: when you were a kid, didn't your mom warn you that hanging around the wrong people would lead to trouble? It's hard to get ahead financially if you associate with others with lousy money habits; you're less inclined to change your ways when those around you reinforce them. The advice is valid when you're an adult and your finances are involved. 

Also, read 10 Steps To Become a Millionaire Under 30 Years Old.

Step 11. Don't Invest in Yourself:

This might be the single most significant obstacle on your path to riches. If you're investing in something other than continuing education, training, and personal development, you're limiting your ability to make more money in the future. "Your own earning power--rooted in your education and job skills--is the most valuable asset you'll ever own, and it can't be wiped out in a market crash,"