It's Your Fault You're Broke


 It's Your Fault You're Broke: Stop Blaming and Start Taking Responsibility

Living paycheck to paycheck? Frustrated by your dwindling bank account while others around you seem to be thriving and enjoying life? Here's a hard truth: In 99% of cases, it’s your fault. Your financial struggles aren't due to a lack of income, the economy, or bad luck, they're a direct result of your choices and mindset. It's time to confront this reality, take responsibility, and transform your financial future.

I met a worker last week, earning 1300aed a month (353 USD) many would look at him and be like, there’s not a chance that he is saving anything, it’s impossible. He was saving… He was saving 500 aed (136 USD) each month. I was shocked, here was a man being paid very little and still managing to save over 30% of his income each month. I have clients on 100x of his income and barely manage to save at all. He is truly an inspiration, and a stark reminder of how brutal Lifestyle inflation is. Hence, it is your fault, the life that you live, the luxuries that you surround yourself with, your financial decisions shape your life, if you want to change it you can.

This article is meant to empower you but also be a tough wakeup call. You don’t need to be earning hundreds of thousands or millions each year to become wealthy and achieve financial freedom. What you need to do is have an idea of your goal, understand what’s needed to achieve it and then you save first, then spend.

Stop Making Excuses: Own Your Financial Mess

Blaming external factors for your financial situation is convenient but counterproductive. Excuses like "I don't earn enough" or "The economy is bad" only serve to deflect responsibility. The first step toward financial success is acknowledging that your decisions—impulsive spending, lack of budgeting, ignoring debt—are the root causes of your financial woes. Personal accountability is the foundation of any financial turnaround.

Take Action:

  • Face the Numbers: Conduct a thorough review of your expenses. Identify where your money is going and pinpoint areas of wasteful spending.
  • Educate Yourself: Ignorance isn't bliss; it's costly. Invest time in learning about personal finance, budgeting, and investing.

Quit the Lifestyle Inflation: You're Not a Millionaire

Every time your income increases, do you find yourself upgrading your lifestyle—buying a new gadget, car, or planning an expensive vacation? This phenomenon, known as lifestyle inflation, ensures that higher income leads to higher expenses, not wealth accumulation. Without restraint, you'll remain trapped in a cycle of earning and spending, never building substantial wealth.

Take Action:

  • Set Savings Goals: Commit to saving a fixed percentage of your income, regardless of raises or bonuses.
  • Delay Gratification: Before making significant purchases, implement a waiting period—say 30 days.
  • Comparison is the thief of joy: Stop comparing yourself to everyone else, to your friends and influencers. You don’t know what’s going on behind closed doors, all the holidays, luxury cars and fancy handbags that you see don’t paint an accurate picture of someone’s financial circumstances. I’ve met and had to help many who online lived the most wonderful lives, but their finances told a very different story. No savings, no investments and in-debt. The lifestyle which they were showing off was killing them and they couldn’t escape. Stop comparing yourself.

Ditch the Short-Term Mindset: Think Beyond Today

Living solely for today at the expense of tomorrow is a financial pitfall. Prioritizing immediate pleasures over long-term security guarantees perpetual financial instability. It's imperative to adopt a forward-thinking approach and plan for the future. The amount of people I’ve spoken to who are on weekly benders, go out to dinner multiple times a month, who buy designer goods and yet complain that the government have sent themselves up to fail. That it’s the Governments fault and the employer’s fault that they’re not paid enough and don’t have the savings. No, it’s your fault... You decided to do those things instead of saving, investing, being smart with your money. You worked hard, so you believe that you should be able to do those things and so you do, you live in the short term. Live within your means! Boring answer? 50.46% of people in the UAE spend more than they earn, that is RIDICULOUS.

Save in the short term to enjoy things in the long term, not enjoy in the short and suffer in the long. You can still have fun, but before you do anything make sure that you are putting money away.

Take Action:

  • Visualize Your Future: Define clear long-term financial objectives, such as homeownership, retirement, or starting a business.
  • Invest Wisely: Begin investing early to harness the power of compound interest.

Pay Yourself First: Prioritize Your Future

If you wait to save what's left after spending, you'll never save. Prioritize your future by allocating a portion of your income to savings and investments before addressing other expenses. This proactive approach is essential for building wealth.

Take Action:

  • Automate Savings: Set up automatic transfers to your savings or investment accounts.
  • Increase Contributions: As your income grows, elevate your savings rate.

Stop Funding a Lifestyle You Can't Afford: Debt Is Not Your Friend

Using credit to live beyond your means is a surefire way to financial ruin. High-interest debt drains your income, hindering your ability to build wealth. It's time to break free from this destructive cycle.

Take Action:

  • Destroy Credit Cards: If you can't use them responsibly, eliminate them.
  • Create a Debt Repayment Plan: List your debts and tackle them aggressively, starting with those carrying the highest interest rates. 36% interest on a credit card needs to be dealt with, don’t think that paying the minimum amount each month is the correct thing to do. Pay it off as soon as possible.

Conclusion: Wake Up and Take Control

Your financial destiny is in your hands. Stop blaming others, making excuses, and indulging in destructive behaviors. Take responsibility, make tough choices, and commit to a disciplined financial strategy. Your future self will thank you.

Start today. Review your finances, set realistic goals, and take decisive action. Remember, the only thing standing between you and financial success is you. Not sure where to start? Feel free to reach out. The job of a good advisor is to help people achieve their financial goals.

https://outlook.office365.com/book/SkyboundWealthManagement4@skyboundwealth.com/s/GxL75GQxr0KaVOmhTMCyZg2

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