How To Go Broke In A Year
Although I know it’s not part of your plan, you can get broke if you do not watch some things in your finances. Being broke is something you cannot avoid if you continue making wrong financial decisions. To prevent them, we have arranged this little piece of information to show you the things you are doing that can make you go broke before the Year runs out. We also suggest to you actionable ways steer clear of them.
Table of Contents
Buying What you Cannot afford
The fastest way to hit the bottom of your finances is by buying those things you do not need or cannot afford yet. Most times, people do this because of Peer pressure and the desire to look like friends and neighbours. The person you are looking like might have a bigger budget and earn more income than you, so you should live on your budget and financial capability.
Buying trendy clothes, luxurious cars, and expensive items can land you in debt sooner than you think. Some people even purchase these material things on credit open to pay when they receive a salary at the end of the month. By so doing, the salary gets exhausted even before it enters their bank account at the end of the month. The worst part is that most of the things you buy now will depreciate sooner or later. So why keep yourself in debt just to acquire them?
The remedy for this is to make sure that you only purchase the things you need. Do not purchase luxury items because you see your friends use them. If it is above your means, kindly go for the one you can afford.
Investing In Ponzi Schemes
Another quick way to pack your bags and go to your village because of being broke before the end of this year is to invest your money into Ponzi schemes. Many Ponzi schemes are disguised as online businesses and Investments but in the three since they are mediums to defraud innocent people of their hard-earned money.
At first, it doesn’t look like a Ponzi scheme because you are promised a certain amount of returns when you invest a certain amount of money. This might go on for some time, and you might be ripping the Promised Returns, but in the long run, a Ponzi scheme must crash, and there is only one way it will end for you: negative.
The best way to avoid this is to do proper research before you invest in any online business. If they offer you a certain amount of profit at a particular time without any service or any product, then you should think twice before investing with them.
No emergency Funds
Having no emergency fund is a very disastrous way of living because things can happen at any time. What if you lose your job unexpectedly or fall into a situation that needs urgent financial assistance. Will you wait till your salary is paid? Oh! You just lost your job, so where are you going to get funds from? This is why an emergency fund is significant because we save for rainy days. As you receive your salary monthly or make income from your business,
reserve some of your income for emergency needs. By doing this, you have something to fall back on when unfavourable challenges or situations are affecting your finances.
We have explained a few of the ways you can go from rich to broke within a year if you do not note them. I know hundreds of things can make someone go broke even without the person planning to. But if you can curtail some of the excesses we have listed in this article and be more deliberate in managing and preparing your finances, you will not break anytime soon.
GIFTCARDSTONAIRA is a registered gift card trading company established in 2017 dedicated to providing a world-class trading experience to people in Nigeria and Ghana. Integrity, dedication and excellence in value have been the pillars on which our company hinges its practices and policies.