Money Traps That Will Keep You Broke Forever

[Mika]

Here are 3 things to avoid in if you want financial security.

Not knowing what you have invested in: If you invested in the wrong assets and wrong markets, your investment will not give you the financial security that you desired. Don’t just listen to friends and family, don’t blindly follow any financial advisor, it could be a financial gamble.

Actively trading: Trading on speculative assets can be detrimental to you if you have limited funds for investment. Only the whales can outperform the market, the rest of us will be caught when the markets start going down. Buying when the market is down and selling when the market goes up sounds tempting but difficult to achieve.

Not tax planning: Taxes are one of the largest expenses in your life. You need to see what the rich do and maximize your tax situation more than necessary. Find legal ways to reduce tax. Retirement accounts and real estate have comparatively lower taxes. Mortgage interest and insurance help you to reduce your taxes.

 

[Shaf]

Some things can easily be done to ensure that you gain financial security, but that's if you realize that financial security is important and you are willing to work towards it. It takes some sacrifice and work which people don't like doing.

Most people rely on their active income and never plan for emergencies, retirement or investment. This is the greatest financial trap of all. It creates a false sense of security that only wears off once you no longer have a regular income.

Another money trap people fall for is the need for luxury and new things. Even knowing the dangers of this, I still find it hard to maintain the discipline to avoid purchasing new things if I have money. This is even more dangerous when you can simply scroll on your phones and order as you wish.

Careful planning of your finances, down to the last details will help anyone to avoid falling into money traps.

 

[Ithedicious]

Sometimes it could be very difficult nowadays in which there is high rate of scamming activities . If this has to continue a lot of people could be so afraid to invest their money in anything because they afraid that they won't be able to have access to their money after investing . They will mostly prefer to save their money in the bank not minding the depreciation they are likely to face in the nearest future.

The only most suitable investment opportunities now is just real estate which is among the most profitable , but here this requires a huge sum of money for people to establish and start a real estate investment.

Whatever the case may be , in terms of trading you cannot really trade any assets when you have not pass through a professional training on how to trade them and trading them without an understanding means you might likely be a loser.

 

[Yusra3]

The most common money trap is spending too much money on things you don't need. It's easy to get sucked in by ads that promise the world and make it seem like your life would be better if only you could afford this or that. But the truth is, most of those things aren't actually worth it and once you've paid for them, you'll find yourself wishing you'd just saved up and bought the real thing instead.

Another trap is making bad investments. You may have heard about how some people have been investing in stocks and real estate over the past few years, and they're making huge amounts of money. But did you know that most of these people didn't really know what they were doing?

They invested their money in things like gold, oil futures, and other financial products without understanding how they worked or what made them worth anything. Now they're looking at payback time with their investments losing value every day (if not hour).

 

[moonchild]

Staying broke is totally an individual thing, If you are capable and not down with any kind of illness that incapacitate you, if you are broke, you can get out of the situation by working hard, getting a basic job, I do not care if you live in a third world country you can go to a nearby market and help in offloading goods or selling food or drinks, hundreds of people are doing this and surviving, so staying broke is an individual choice.

Anybody can go broke if they keep on making bad decisions, Donald Trump went broke and bounced back, Kanye West went broke and bounced back so it is all a thing of the mind, wealth creation rules are the same, it is the same for people that got rich in industrialization era and in this era, they all offer society what they like in scale and got rich as a by product.