Breaking the cycle of poverty: 6 habits to break to achieve financial success

    AI generated image for illustration purpose only.

    30th July 2023 – (Hong Kong) There is a saying that goes, “the poor get poorer, and the rich get richer.” For those born into poverty, it can be incredibly difficult to rise above their circumstances and achieve upward mobility. Beyond the challenges posed by their family background, there are several small habits that can inadvertently lead to financial struggles. Many people feel that despite working hard and earning more, they still can’t seem to make ends meet. This may be due to habits that need to be changed. If you want to find a path to financial success, it’s essential to break these six habits that keep you trapped in a cycle of poverty.

    Habit 1: Using Luxury Items to Prove Your Worth
    The poorer someone is, the more they often feel the need to prove their worth to others. They may buy luxury handbags, clothes, and shoes to show that they are doing well. However, this type of spending often results in taking on debt, which can lead to a cycle of poverty. This “living beyond your means” behaviour only perpetuates a cycle of financial struggle.

    Habit 2: Overbuying to Get Discounts
    Businesses often offer enticing package deals like buy two, get one free, discounts on purchases over a certain amount, or free gifts with specific products. Many people can’t resist these offers and end up buying more than they need. They may think they’re saving money, but in reality, they’re overspending.

    Habit 3: Overbuying Because of Low Prices
    Similarly, some people may be tempted to buy items they don’t need just because they’re on sale. They may purchase things that they will never use or don’t even want, resulting in wasted money and cluttered homes. It’s important to think carefully about your needs and create a shopping list before making purchases.

    Habit 4: Holding Resentment Towards the Wealthy
    The less money someone has, the more likely they are to resent those who are wealthy. They may believe that those who have money got it through luck or by being born into privilege. While luck can play a role in accumulating wealth, hard work and effort are also significant factors. If someone believes that luck is the only way to get rich, they may lose the motivation to work hard, which only leads to more financial struggles.

    Habit 5: Inability to Say No
    Some people find it challenging to say no to spending money, especially if it puts social relationships at risk. For example, they may go to an expensive restaurant to keep up with friends or lend money to someone despite not being able to afford it. Saying no to unnecessary expenses is crucial for financial stability.

    Habit 6: Refusing to Start From the Bottom
    People who are wealthy often take every opportunity to make money, no matter how menial or low-paying the job may be. They are willing to put aside their pride to earn a living. On the other hand, those in poverty are often too focused on their pride to accept jobs that they deem beneath them, even if the pay is good. This attitude can cause someone to miss out on opportunities to learn, grow and accumulate wealth.

    Breaking these habits can be challenging, but it’s essential to start somewhere. The first step is to acknowledge the habits that contribute to financial struggles and take action to change them. Here are some tips to help break these habits:

    • Set financial goals and create a budget to manage your expenses.
    • Avoid impulse buying by making a list of what you need before going shopping.
    • Learn to say no to unnecessary expenses.
    • Embrace opportunities to learn and grow, even if they seem insignificant.
    • Don’t compare yourself to others and focus on your own goals.
    • Seek advice from financial experts or take financial literacy courses.

    Ultimately, achieving financial success requires discipline, hard work, and a willingness to change. Breaking these habits is the first step in breaking the cycle of poverty. With persistence and dedication, anyone can overcome financial struggles and achieve financial stability.