It seems like if you knew how to stop being poor, you would not be poor, right? It is not as simple as that. Breaking the poverty cycle takes time, effort and a lot of willpower. With the proper steps, though, you can break the poverty cycle and start living your best life.
It is possible to work your way out of the vicious cycle of poverty. Here are a few of the most common causes of poverty:
You come from a disadvantaged background.
You have likely heard the phrase ‘born with a silver spoon,’ right? It refers to people born into wealth or born with everything they need. Not everyone is as fortunate, leaving them financially troubled from the start. Many people are born into low-income families or families who lack generational wealth. If the habits of your ancestors continue in you, you could suffer from poverty too.
You have experienced unfortunate tragedy.
Life is unpredictable and happens at the worst possible times. Medical emergencies, accidents, house fires and criminal disasters can leave a family destitute. No matter how much you prepare for the worst, life has a funny way of working sometimes. Medical expenses often cause financial issues and even bankruptcy, as can destruction of your home or the inability to work due to a severe accident. The crisis itself causes financial issues and then breaking the cycle of poverty feels nearly impossible as you spin in circles trying to get ahead of yourself.
Perhaps you have made poor financial decisions.
Sometimes to find the reason we are poor; we need to look in the mirror. Our poor financial decisions can have a ripple effect on our wealth. For example, if you get in the habit of using credit cards and living outside your means, it can quickly lead to poverty when you cannot afford your bills and the minimum payments on your credit cards. If you have made poor financial decisions and caused yourself financial strife, it is not a time to blame yourself but rather focus on what you can change so you can learn how to stop being poor.
How to stop being poor: Steps for breaking the cycle of poverty.
In order to escape the vicious cycle of poverty, you need to start by recognizing where you are at. When you can admit you are suffering from poverty and need help, you will be ready to take the following steps to stop being poor.
1. Focus on what you can control.
Suffering from poverty feels overwhelming but do not let it. Take control of how you feel and how you think about money. Rather than looking at the big picture and thinking, ‘I could never get out of this,’ look at the little things you can control. For example, you cannot control it when you fall ill but you can control what you spend your money on outside of the necessities.
When you are learning how to get out of poverty, you must focus on the controllable things in your life. As you focus on them, you will feel more sure of yourself and be ready to take the more significant steps – the steps that will get you out of poverty.
2. Stop comparing yourself to others as a key step to stop being poor.
When it comes to how to stop being poor, stop looking at your neighbours, friends, or even siblings and feeling jealous over what they have. Do not let belongings define your worth. So, what if your neighbour drives a Mercedes Benz and you drive a Toyota? Will they like you better if you drive a fancier car? If so, they are not your true friends.
Focus on what you think versus what others think. If your friends and family all buy brand-name items but you are perfectly comfortable with the less expensive generic items, you do what you need to do.
Do not try to keep up with what others do because you do not know their financial circumstances. Sure, they may look like they can afford the expensive clothing or fancy dinners but how do you know they are not racking up credit card debt they cannot afford?
Focus on you and only you. If others like you, great. If they snub you because you do not spend like they do or have the same belongings, they do not belong in your life.
3. Put yourself in the company of others who make smart financial decisions.
You are the average of the five people you spend the most time with – does that scare you? Think about the people you spend the most time with. Do they make intelligent financial decisions or do they spend recklessly?
Chances are, whatever they do, you will do too, subconsciously. You may say you want to learn how to stop being poor but when you are with your ‘group,’ your actions say otherwise. Instead, surround yourself with people who have the same ideals as you.
When you are with people making smart financial decisions, subconsciously, you will too. When you inherently make wise financial decisions, you will break the poverty cycle without feeling overwhelmed – it will happen naturally.
4. Establish a plan for how to stop being poor by figuring out where you stand.
To learn how to stop being poor, you must know where you stand. This step is not easy because you have to be honest with yourself. You must look at your bank accounts and compare them to your liabilities and see where you stack up.
Once you are aware of your circumstances, you can plan better moving forward. If you do not have a budget yet, create one now. Use an application, pen and paper, or Excel spreadsheet to track your cash inflow and outflow and see where you should make changes.
Are you spending more than you earn? Is it too hard to pay all your bills each month? Categorize your spending, figure out where you should cut back and take it one step at a time.
5. Set goals to move forward financially.
You cannot get out of poverty unless you have goals. You must show that you want to change your situation. If you have not already, make your goals visual. Write them down on sticky notes and put them on your bathroom mirror and refrigerator – two places you go every day and will see the reminders.
If you are creative, create a vision board and put it somewhere prominent in your home. What will you do when you are out of poverty? What goals do you have? Do you want to buy a house, a new car or find your dream job? Get as specific as possible with your goals to motivate you to do the hard work to break the vicious cycle of poverty.
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