4 Causes of Poverty That May Be Affecting Your Finances

4 Causes of Poverty That May Be Affecting Your Finances

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causes of poverty

Even though the Word of God says that Jesus came so we can have life in abundance there is a concerning level of poverty in the world today. In nations the cause is sometimes due to oppressive governments that serve themselves at the expense of its people. However, that is not necessarily an excuse poor people should use to justify their situation.

Circumstances do affect our financial standing but this should not be an excuse for poor management of personal finances. Not having money can be devastating especially when you start having responsibilities like taking care of a family. Poor people tend to have a tough time meeting basic needs let alone being a blessing to others.

In this post let us look at some of the causes of poverty that plague poor people and what you must do to avoid them yourself.

1. Believing money is evil

There is a common misconception that money is evil and yet this is erroneous thinking. Beliefs that you hold have the greatest potential for good or harm in your life. Beliefs can either be true or false and so it is important that you have the right beliefs based on truth.

Holding on to the belief that money is evil will make it difficult for you to receive blessings when God and other people want to bless you.

For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows.” ~ 1 Timothy 6:10

Money in itself is not evil but the love of money is what is evil.

What to do: Realize that according to God’s Word you are born to have life in abundance. God is a giver of good things so be open to receive the blessings that come your way.

2. Lack of proper planning

When you fail to plan you plan to fail as one wise person once said. I have experienced first-hand this truth in the area of my finances. When I did not plan the use of my finances I wondered where the money went to and realized how much I had wasted. If I had a plan before using it I would be in a better financial position than I am today.

Poor people remain stuck in poverty because they may not know how to manage their finances and probably most were never taught at home how to do so. Money tends to amplify what you already are at the core so it is never really about how much money you make.

He who is faithful in what is least is faithful also in much; and he who is unjust in what is least is unjust also in much.” ~ Luke 16:10

Poor planning is one of the major causes of poverty and so learning to manage what you have is paramount. If you are faithful with little you will be faithful with much.

What to do: Prepare financial goals and a spending plan that will guide how you use your finances.

3. Keeping up with Joneses

Poor people have a tendency to want to look rich in the eyes of other people yet the end result is misery. You do not want to be one of those people who want to keep with other people’s lifestyle when they know how shallow their financial standing is.

Do not buy things just to look good in front of others because that will ultimately lead you to financial trouble that will bring stress to your life and affect your close relationships. Money problems are a major cause of divorce and soured relationships so you have to prudent as a result.

What to do: Run your own race and stick to your plan, not someone else’s.

4. Lack of financial literacy

Lack of understanding about money is another major factor that keeps people in poverty. I recommend you read books on the subject of money such as Rich Dad, Poor Dad by Robert Kiyosaki that will point you in the right direction in this important subject.

When you do not take charge for your own financial education someone else will do that and may easily mislead you in the process. One of the key things you need to learn is the difference between an asset and a liability. Assets put money into your pocket while liabilities take money out of your pocket.

What to do: Look for good resources and the right people to help you learn more about the subject of money

 

 

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About the author

Sija Mafu is an Online Enthusiast, Personal Development Fan, Global Business owner and a Master in The Art of Living. Also as a devout Christian, his vision is to see young people take responsibility for their lives and create bright futures for themselves, their families and society at large.

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