As you know, a lot of people do not know how to manage their credit cards or paychecks or money in general.  Here is a list of why you are broke:

1.  You do not track your spending?

2.  Your mindset is that “It’s only a dollar.  This is not going to make me rich.”

3.  You mix wants with needs.  95 % of the things we buy are wants.  They are not needs.  You have to differentiate between the two.  For example, a need is food and water.  A want is to eat at a fancy restaurant where they charge $15/burger an $5/bottled water.  I am sure you can make the same sandwich and drink tap water(free) for under $2.

4.  You are lazy.  Being lazy makes you fat and that results in health problems.  Also, when you are lazy, you do not want to take the time to make dinner at home and you would rather drive(waste gas $$) and eat at a restaurant.

5.  You do not understand the meaning of compound interest.  This is where credit cards come in my friend.  Most people will not get out of debt anytime soon if they do not understand compound interest.  If you bought something on a credit card and made minimum payments on it, that item can cost you 5 times after you have paid it off.

6.  You do not pay your bills fully.  You make minimum payments.  Then you wonder, where all your money goes.

7.  You eat out 5 days a week. (eating out adds up)

8.  You have a need to impress your friends.

9.  You buy the most expensive clothes.

10.  You have a girlfriend (girls can be quite expensive when you take into account that guys(you) have to pay for dinner and going to the movies and what not.

10.  You do not set goals.  If you decide to set goals, you will be in much better financial shape.

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