Here’s Exactly How to Feel Poor (And It Has Nothing to Do with Skipping Your Daily Coffee)
In my years as a financial adviser I’ve worked with hundreds of clients, helping them regain control over their money and build the lives they want.
Through these experiences, I've noticed recurring patterns that often leave people feeling like they're stuck in a rut, never quite getting ahead.
If you find yourself in this situation, here are some common moves that may be contributing to those feelings of financial strain.
1. Saving Any Free Money You Have Left
Let’s start with saving. It might seem wise to save every spare dollar, but if you’re only stashing cash without investing it, you might as well be running on a treadmill: you’re putting in the effort, but not actually going anywhere.
Saving without investing is a recipe for stagnation. Money in a savings account typically earns minimal interest, barely keeping pace with inflation.
Instead, consider putting your money to work for you by exploring investment options that align with your financial goals. This way, your money has the potential to grow and help secure your financial future.
2. Trying to Keep Up with the Joneses
We live in a world driven by comparisons. It's all too easy to get caught up in what your neighbours or friends have – the latest gadgets, shiny new cars, or spacious homes.
The urge to keep up can be overwhelming, but remember that you often don’t know the full picture of their financial situation. They may have significant debt hidden behind those flashy purchases.
Instead of competing with others, focus on your own goals and values. Create a financial plan that reflects your aspirations rather than trying to match someone else's lifestyle. True wealth comes from personal satisfaction and security, not from external appearances.
3. Relying Solely on Your Job to Get Ahead
Many people make the mistake of relying entirely on their jobs for financial growth.
While hard work is important, it has its limits. Your salary can only stretch so far, and the number of hours in a week is finite. If you want to truly get ahead, consider diversifying your income streams. This could involve investing in assets like property, stocks, or even starting a side business.
The goal is to have your money working for you, creating additional revenue and opportunities. Building a strong financial foundation involves expanding your financial view beyond just the next pay cheque or immediate problem.
The Path to True Wealth
Wealth is not just about accumulating money; it’s about creating a life that you love today while also planning for the future. It involves building assets, managing your lifestyle expectations, and shifting your focus from short-term solutions to long-term growth.
When you can manage your financial resources wisely, you’ll find that you can live the life you want for you and your family without sacrificing your future.
Feeling poor often comes from poor financial habits and a reactive mindset.
By recognising these patterns and taking proactive steps towards better financial management, you can change your outlook and experience the freedom that comes with financial security.
Want to know more?
1) You can click here to book a free 15-minute free clarity call with Sam Woodhouse to discuss how this may relate to you.
2) Join our Your Money Simplified email list to start taking control of your money today. And when you subscribe, I'll give you a PDF called My 3-Step Process for Building Your Road Map to Financial Freedom.
The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.