Poverty Mindset: Wealth Preventer
Earlier this week I saw a thread about poverty mindsets that really got me thinking. It said, “Poverty is more than a lack of money, it’s a wretched state of being. Poverty is a traumatic experience that impacts how we view, believe, use, and grow money.” I’m not sure I’ve ever read a truer explanation of a poverty mindset.
While growing up in poverty is not a choice, it leaves lasting implications on the child who becomes an adult in charge of their own finances. ELP Budgeting Services would never discount the pain and reality of poverty. In fact, it’s the stinging of poverty in marginalized communities that motivates us to teach practical methods to generational wealth. However, it is important recognize the signs of a poverty mindset, in order to break them and achieve wealth.
Six Signs of a Poverty Mindset and How to Break Them
The following six signs may be the most in your face blog post we’ve ever written, so buckle your seat belts. Our solutions on how to break them may also may be the keys you need to break poverty off your back forever.
1. You Spend Everything You Earn
A poverty mindset leads one to spend everything they earn. A poverty mindset is also likely spending everything on themselves, rather than giving to others. Spending the totality of what is earned, even on bills, is a head down mindset without a look to the future. On the contrary, a wealth mindset says, “I need to put X dollars away for the future and work with what’s left. If what is left is not enough, I need to make changes in how I am living.” Don’t allow a lack in money to be a reason to give up hope. Change how you think and direct your circumstances, don’t let them direct you. Manage your money better by following a budget from one of our proven plans.
2. You Think Debt is a Normal
Maxing out a credit card to have an item immediately is a sign of a poverty mindset. Believing a high debt to income ratio and the associated low credit scores are the only option to live a decent life is as well. A wealthy mindset says, “Why would I overindulge now just to stress about it later. I will use debt to my advantage and only purchase what I can afford in cash. I will practice delayed gratification because debt prevents wealth.” If you are carrying high interest debt, and it doesn’t keep you up at night, its time to pursue our Debt Cancellation Program and get on the track to wealth.
3. Your Retirement Plan is Social Security
A poverty mindset does not plan for the future. The American poverty mindset relies on the promise of social security to support them in retirement. A wealthy mindset says, “I will not rely on a government system to sustain me. I have the power to take control of my financial future.” We empathize with the fact that a poverty mindset may lack the tools to break the cycle, but the cycle can only be broken once the mind says it’s possible. Break this sign of a poverty mindset by seeking out the help of our ELP University membership or ELP Generational Wealth Budgeting program and situate your future for financial success. Oh and by the way! You are never too old to plan for the future. A dollar saved today is a dollar less to work for tomorrow.
4. You Believe Government Help Is Owed to You
At ELP Budgeting Services do we believe the government exists to serve its people? Absolutely. However, a thin line exists between a poverty mindset and wealthy mindset on this matter. A poverty mindset believes financial help and guidance is owed and does nothing about it if not received. A wealthy mindset takes control of their own destiny and pursues the tools necessary for the desired goal. With a wealth of knowledge at our fingertips via the internet, there is no excuse for not taking advantage of the resources available. You have the power to generate wealth, rather than survive off bare minimum resources designed to keep its benefactors in a hole forever.
5. You Associate Wealth with Expensive Items
The latest model car. The designer accessories. The overpriced house. A poverty mindset associates these items with appearing wealthy. It doesn’t matter if it’s a struggle to maintain the foreign car or the designer wallet has less in it than the cost of the wallet. As long as there is an appearance of wealth, the poverty mindset is comfortable. A wealthy mindset is uncomfortable pursuing what it can’t afford, especially if it threatens the financial future. Break the poverty mindset by neglecting a false appearance and caring what others perceive. Instead pursue peace by living within your means despite what others have. When you can really afford it, you might now even want it anymore!
6. You Think Wealth is Impossible
Perhaps of no fault of its own, the poverty mindset never saw wealth modeled and therefore thinks it is impossible. A wealthy mindset believes wealth is not only possible, but a must! A wealthy mindset may not even belong to a wealthy person, but we guarantee that person will achieve wealth if they can first believe it’s possible. Breaking the poverty mindset starts in your mind. If you can believe it you can achieve it!
ELP Budgeting Services hopes to inspire our audience to believe there’s more than what has been. If you are the result of poverty, we want you to know poverty does not have to be your destiny. You may not know where to start and may even fear it is impossible, but we are here to show you different. Ready to make a change? We are ready to help.