For most Americans, it is an issue with money management, not being able to save, and never knowing when to say no. Whether you make $15,000 annually, or $150,000 annually, the US is one of the countries with individuals who are broke, and do not have money set aside for retirement. There is more than one reason for this problem, but these are 5 reasons you are broke and struggle with finances, even though you are making a decent salary or wage, at the position you are working or with a business that you own.
1. You don’t save
It is as simple as that. When you receive your paycheck, you deposit it directly in to your checking account. This should not be the case; even if you can’t put much aside each week (or other week), you should put something in to savings. Take away 5%, 10%, or anything with each paycheck, and place it in to savings.
Whether it is a savings account, CD, or something like a 401 (k), it is worth putting something away. Even if it is not much, having an investment account will allow you to earn interest, and have something saved up in the event you run in to tough times.
2. You do not think
In the US, we spend our money on stupid things. From simply spending more each month on gas or electricity bills, to overpaying at the grocery store, we do not think before we spend.
If you save the money for a great vacation, or that new car, there is nothing wrong with spending; but, when you are simply throwing your money away on bills, when you could easily save that money by making minor modifications to your lifestyle, it is one of the top reasons we are broke, and are always going to be broke.