Although there is money to be had, poor people seem to have trouble taking all that they can get. It’s very easy to remain poor if you don’t actively do something about it. So what is it that they are doing wrong? Here’s a list of ten mistakes that poor people make that serve to keep them poor forever:

1. Delay action: You probably have good intentions to save and get a budget together, but intentions can’t replace action. When is the right time to get your financial house in order? Right now. Delaying savings and investments can cheat you out of valuable interest earnings. Put this off too long, and you may find yourself penniless without a plan.

2. Using credit irresponsibly: Credit cards represent real money that eventually must be paid back. Maxing out your balance for a cute pair of shoes might seem like a good idea at the time, but you’ll likely end up paying more than they are worth in interest fees. Irresponsible credit use will also wreck your credit rating. If you have a poor rating, you’ll be subject to high interest rates when you want to buy a house or a new car. These high rates can translate into thousands of dollars over the life of a loan, cheating you out of money that would still be yours if you’d only used credit responsibly.

3. Frivolous spending: What’s more important, going out to eat this Friday night, or being able to buy diapers for your child? It seems like an easy answer, but many people have trouble prioritizing their needs versus wants. If you’re working with a limited budget, first buy the things you absolutely need, then create a savings fund to gather money for the things you really want: a your own home, nice vacation or college education.F

4. Living in a world of make believe: Don’t ignore money problems. Yes, they are real and no, they will not go away if you ignore them. Forgetting about credit card payments will only serve to make your debt higher. Get real about how much you owe and make a plan to pay it down.

5. Not being ambitious: A job at McDonalds may provide a steady paycheck, but if you’re out of school and still working the drive-thru, you’re simply not doing enough. Don’t be complacent; get out there and pound the pavement. A better job and more money is there to be found: you simply have to look for it and be willing to put forth the effort.

6. Lack of planning: College and retirement have two things in common: both require lots of money and can be foreseen well in advance. Why do some people end up scrambling when these events come
around? Because they failed to plan for them. After a child is born, you’ll have approximately 18 years to create a college fund, and retirement savings can start as soon as you receive your first paycheck! Plan ahead and save for major monetary events in your life to avoid wrecking your finances.

7. Believing that college is always good: Not everyone is made for college. Some don’t have the discipline and some just don’t need it. If your child has a tendency to blow off homework for partying, test the waters at a community college before spending big money on a four-year college. Does your child have interest and aptitude in a trade that doesn’t require school? Let them get straight to work. Education is expensive: you shouldn’t waste money or time on it if it will be of no benefit.

8. Living without health insurance: Insurance may seem like a luxury reserved for the wealthy, but you cannot afford to live without it. One accident or major illness can absolutely ruin your finances for many years to come. Even worse, avoiding the doctor because you lack insurance can allow a small problem to grow large, resulting in a catastrophic health and financial event.

9. Having children too soon: If you’ve just been married, you’ll have lots of people advising you to have kids while you’re still young. They’ll tell you that money problems will sort themselves out, but in reality, they may not. Children require numerous expenses that can derail your budget and savings before they even start. Get your finances in order, then start planning for a child.Pay

10. What savings? Most people who have trouble with their finances claim to be unable to save any money. They don’t have the discipline to set aside some money for inevitable emergencies. This means if they run into a problem, they may have to apply for high-interest payday loans. Loans of this sort can contribute to a downward spiral of deepening debt.

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