3. You feel powerless, hence you do nothing.
Yes, if you are broke and in the middle of a financial hardship and you are feeling all anxious, stressed out, and depressed, it is easy to feel powerless or helpless.
But you are not. You are not powerless. You are not helpless. Giving in to those feelings of helplessness will only hurt you, said AJ Smith, vice president of content strategy and managing editor of SmartAsset.
“By getting accurate, unbiased knowledge and advice, people can feel empowered and confident in their personal finance decisions,” Smith said. “They can then takes steps to make a better financial future.”
4. You do not know anything about personal finance.
“Most people are broke because they don’t learn about personal finance,” said the founder of Lazy Man and Money. He added that one example of the dangers of debt is that it has compound interest working against you instead of for you as it does with investments.
“I think the psychology should shift from ‘How can I spend money to make me happy now?’ to ‘How can I use this money to buy me financial freedom in the future?’” he said. “If you are able to make that shift, you should be able to overcome most reasonable hardships.”