Why People Stay Broke — and 3 Traits that Make People Rich

Ask anyone who is having financial stress and they will agree, it sucks! Financial stress is a huge silent health killer, marriage killer, self-esteem killer and all-around mood killer. This newsletter will discuss the traits that keep people broke and why others excel. If you see some bad behaviors of your own, why not start correcting them TODAY? Three Traits That Make People Poor or Keep People Poor. 1. Not Understanding Cash Flow. If you make $1M and spend $3M you will go broke. It is not about how much you make but rather how your cash flows. Cash flow and profit are the only two financial variables that will determine if you stay in business and if you will become wealthy. If you do not understand how to read and interpret profit and loss, cash flow statements; and a balance sheet now is the right time to learn. 2. Not Saving Enough. The financial gurus recommend saving 10% of your gross annual salary. I like that as a bare minimum. The more you save the better. In order to save properly you need to create and adhere to a strict budget. The compounding of interest over time is what will make you very rich. Start saving early and encourage your kids to do the same. 3. Living Beyond their Means. This is probably the biggest mistake that I see people make. Here is an easy rule of thumb to prevent you from living beyond your means. If you cannot pay cash for the good/product/service and you HAVE to put it on a credit card that means YOU CANNOT AFFORD IT AND DON'T BUY IT! Three Traits That Make People Rich. 1. Endurance. Go read Colonel Sander's (Kentucky Fried Chicken) biography to see what real endurance is. Unless you were born with a trust fund, every single self-made millionaire probably started off much poorer than they are today. To become rich, you have to endure the short-term pain and soldier through until you reach your goal. 2. High Tolerance for Pain. Every successful person probably failed multiple times before they made it. Thomas Edison, Abraham Lincoln, Richard Nixon all failed miserably. They endured ridicule, financial stress, dings to their self-esteem and huge amounts of pain until they reached their goal. 3. Asking For Help. Not many, if any, can do it all by themselves. It is not a sign of weakness to ask for help; it is a sign of strength. You heard it here first. Now go share this newsletter with someone who can use the information. In Gratitude, Paul Source: 911 profit.com, 6/9/24