Phil's Personal Finance Tip of the Day:
5 Habits of Broke People
February 1, 2013 by
From WellKeptWallet.com
According to Websters Dictionary, the word “broke” means penniless. While there are people who have no money because of misfortune, there are many people who are broke because of their habits. Here are five habits of broke people that you should avoid if you want to become wealthy some day:
1. Surround themselves with other broke people
If you want to stop being broke then you need to start hanging around people who are successful. People that don’t have any money tend to not give the best advice. Why? Because the choices that they have made are why they are broke. The same is true for successful people. The reason why they are successful is because they have made decisions that helped them spend less, save more, invest wisely,etc.2. Play the lottery
I’ll be the first to admit that I played the lottery in 2012. We had a company pool and everyone was throwing in money for a chance to win half of a BILLION dollars. I didn’t want to be the one guy in the office who didn’t play with the off-chance that we might actually win. However, there are people that play the lottery on a weekly basis. In fact, it has been cited that people making $13,000 or less spend 9% of their income on lottery tickets. That comes out to roughly $1,170 per year. What would happen if they decided to invest that money instead of buying lottery tickets and they were able to get 9% annualized return for 50 years? They would have $1,146,271.65! I think most broke people could live off of that in retirement and it is a lot more likely to happen than winning the lottery.To read the entire article by Deacon/WellKeptWallet.com:
http://wellkeptwallet.com/2013/02/5-habits-of-broke-people/
With every rising of the sun, think of your life as just begun. -Unknown
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