When you’ve been trapped in a cycle of poverty for a long time, it’s natural to believe that there’s little that you can do about being broke all the time. But this is an illusion.
Regardless of the reason that you’re broke—insufficient education, a series of low-paying jobs, or a devastating financial setback—you can break out of it.
Here are some ways to put poverty behind you.
Get Out of Debt
Simply trying to pay off your debt one bill at a time doesn’t work well if you’re not earning enough to pay down the balance every month. Most of the money you pay on a debt doesn’t go toward reducing the principal but mainly goes to pay off the higher interest. What’s more, the longer you take to pay off the debt, the more interest compounds, which essentially means that you’re paying interest on your interest.
One way to escape this frustrating cycle of not making much of a dent in your debt is to consolidate your debts. A debt consolidation loan is a loan that is large enough to pay off all your other debts immediately. Because this loan will carry a fixed interest rate rather than the variable interest rate you were paying before, you will reduce your overall interest and debt. You will now owe less. In addition, lenders calculate consolidated loan repayment plans on what you can afford to pay every month, a reckoning based on your estimated monthly income and expenses.
Invest in Possibilities
When we think of investments, we usually think of investing in assets to give us a high return. Following this line of reasoning, it’s possible to think of investing in yourself as a worthwhile asset. You could invest in yourself, for example, by setting goals to achieve something you desire—goals such as increasing your income, finding or enhancing a relationship, or improving your health and well-being. Moving towards these goals with a plan of action will enhance your quality of life, including your ability to make and manage money.
Create Extra Income
If you can’t find a job that pays much or have one that barely covers your monthly expenses, then you can increase your income through a side hustle.
If you can’t find a good side hustle, you can create your own.
If, for instance, you’re a highly creative person, say someone who loves to write, then build a blog or write a book. Instead of waiting for your big break, you could channel your creative energies into making something that would serve as a source of passive income.
If you choose to write a book, it will help you earn royalties. Or, if you’re an expert in something that others would love to learn, then you could create an online course that you can sell over and over again.
Once you’ve created your content, you don’t have to promote or sell it yourself. If you wrote a book, you could hire someone to do the book marketing for you. Or, if you created an online course, you could use an online educational platform that takes care of all the marketing to attract students and all the technical details of delivering your online course through videos.
Believe It’s Possible to Change
A change in attitude will make it possible for you to quit being broke all the time. Believe in yourself and your power to change anything in your life that isn’t working well for you.
Being broke is a condition, not a definition of who you are as a person. Everyone has more potential to change than they realize. By getting rid of debt, investing in your potential to change, and finding novel ways to increase your income, you can prosper.