What It Takes to Escape Poverty and ways to break the poverty cycle (with crystal clear explaination)

 

Every single year, millions of people become millionaires. Just in the united states alone, over 2 million people join the millionaire club every single year, and that number is significantly higher worldwide.

 

When you are living pay-check to pay-check and barely paying your bills, it seems impossible to break that chain of poverty and build wealth that would forever take you and your family out of poverty.

 

But the fact that millions of people annually do that is evidence that it's an achievable goal for most people.

 

It's not your fault when you are born into a family where you have to work day and night just to put food on the table, but the world has changed dramatically since then.

 

We no longer live in an isolated world; everything is connected, everything is available.

 

The internet is probably the greatest invention of humanity. But it's not just about the internet.

 

Ten years ago, most people did not have access to the internet, but the field completely changed with the rise of smartphones.

 

Smartphones and the internet have transformed the way our societies function, and every single year, access to the internet becomes easier and more available.

 

This means it doesn't matter where you are. You have the opportunity to build wealth even if you have no capital because the internet gives you access to the world.

 

That's why millions of people are becoming millionaires every single year. But the problem with most people is that they don't know where to start.

 

That's why here in this video, I will share with you 7 practical steps that you need to escape poverty or the pay-cheque to pay-cheque lifestyle.

 

If you are ready, give your love, share and support to this blog post and let's start with the first one.

 

  EVERYTHING STARTS WITH A PLAN

 

Most people dream of becoming wealthy, but very few sit and down and come up with a practical plan.

 

It doesn't matter how hard you work. If you are working hard but heading in the wrong direction, your hard work will get you nowhere.

 

That's why you need to set up a plan that will get out of that desperate financial position.

 

You might tighten your belt and work extra hours while saving most of your income for a few years or reduce your working hours and spend less to have the time to work on your start-ups or work extra hours to prove to your boss that you are a valuable employee and you are ready to move higher in the ranks of your company.

 

It doesn't matter what the plan is, as long as it seems reasonable and you have one. Without a smart plan, your hard work will not pay off.

 

DON'T SETTLE FOR A LOW-PAYING JOB

 

A lot of people, once they graduate from university, they start looking for a job, and often they might not find a suitable one that fits them skills and knowledge, so they end up taking a low-paying job while they are looking for that dream job.

 

But what happens often is that they get comfortable. That low-paying job will cover their basic needs, and they won't feel the urge to push themselves to find a better job.

 

 

It's normal to lose motivation once you have shelter over your head and food on the table.

 

But that job is a trap! It's like slavery. Once you fall into that comfort zone, you will be trapped there forever.

 

You will take a car loan, swipe that credit card to get yourself a brand-new iPhone, and you are not leaving that job anytime soon.

 

That doesn't mean you shouldn't work in McDonald's, for example, but it should be temporary.

 

You should always keep in mind that you are working there until your business that you

are working on the side succeeds or once you save enough or whatever else might be your plan.

 

                   EDUCATE YOURSELF

 

Let me ask you a simple question! how much do you make? $40K? $50K? $100K? and now let me ask you a second question.

 

Are there people who make twice the amount of money you make? Or how about 5 or 10x times the amount you make?

 

Yes, there and there are plenty of them. So, the problem isn't that you can't make 10x the amount you make today, but rather you just don't know how to make that much money.

 

 

All that is left for you is to learn how to make that much money. And that's why you always have to focus on educating yourself. You are not going to learn overnight how to double your income.

 

This process often happens gradually. Part of your plan should be reading books, taking courses, and other ways to educate yourself.

 

Remember, you don't need a college education. You need to learn how to educate yourself.

 

Often, one skill can get you out of the rat race. In the age of the internet, there is a huge demand for online marketing.

 

For example, if you spend 2 to 3 hours every single day to master this skill, you will have a second source of income.

 

I can give you a million other examples, but it all comes down to how much effort and time you are ready to dedicate to it.

 

          AVOID UNNECESASARY RESPONSIBILITIES

 

This is literally why even smart, hardworking people end up poor. Every single time their income grows, they make sure they take another financial responsibility, and at some point, their financial responsibilities outweigh their income which will make them forever poor.

 

Then their kids will grow up in poverty and then repeat the same mistake over and over - that's known as generational poverty.

 

If you are single and you are in your 20s, you might make more money than you need, then but then you get into a relationship or get married and become a parent, but your income doesn't grow as fast as your expenses.

 

When your kids are young, they are not expensing to take care of, but as they grow up, them expenses will rise and at some point, you will have to get into debt to be able to pay your bills.

 

The problem is that you will not be able to save money until your kids grow old enough, but that might take a decade or two.

 

And until then, you will have to live paycheque to paycheque. The point isn't that kids are bad or starting a family is a bad idea.

 

Having a family is great, but you also have to plan the financial aspect of it. Before becoming a parent, make sure you have saved some money, you have some investments, which takes me to the next point.

 

                LEARN HOW TO INVEST

 

Let me make this clear and simple - you cannot become financially free unless you learn how to invest!  You can't trade your time for money your entire life.

 

At some point, you will get old, sick and you also need to spend your time on other things such as taking care of your family or traveling, and the only way to do that while you keep making money is to have assets that generate income even when you are sleeping.

The most basic example is a rental property. A property that can be rented out, it will keep earning you money even if you are not there, but that's just one example!

 

You can invest in stocks, bonds, mutual funds, or start-ups. There are millions of ways to invest.

 

That's why you have to put the time and effort to learn how to analyse stocks, read financial statements and find great investments.

 

                 DELAY GRATIFICATION

 

When people start a business or start investing, they expect quick results. They are not patient.

 

They want to be like Warren Buffett the next day. Little do they know that it took almost 20 years for Warren Buffett to make his first million.

 

He is considered by many as the greatest investor of all time, and yet it took him longer to make a million dollars than other people because that's the nature of success.

 

You can either chose to enjoy the fruits of your labour today or work extra and enjoy later. It's like going to the gym.

 

No matter how hard you work, you are not going to see any progress in the first day or week.

 

You might need to work out for a few months to see any meaningful progress, maybe even years, so learn how to delay gratification.   

           

           BUDGET EVERYTHING

 

I remember, when I was living pay cheque to paycheque, I was on an extremely tied budget.

 

I use to think that if I would be making even slightly more than I do now, I will start investing, but what ended up happening is that I just started spending more.

 

In fact, when I started making multiple times more, all that happened is that my expenses just kept getting higher and higher.

 

 

If you do not budget and discipline yourself to stick to a certain budget, you won't be able to save money to invest even if you make a hundred grand a month.

 

There are infinite ways you can spend that hundred grands. So, instead of constantly pushing that investing line higher and higher, discipline yourself to stick to a smaller budget.

 

If Elon Musk could survive on a dollar a day in the united states, you will definitely survive with few hundred dollars.

 

Don't get me wrong, Enjoy the money you earned with your hard work, travel, or do whatever you desire, but stick to a budget that's lower than your income because you have to acquire assets.

 

Here you go, now you know how to start where to start. Of course, you need much more than these 7 steps to get out of poverty, but it always helps to have an idea where to start.

 

But remember that no matter how many videos you watch, how many books you read, nothing is going to change unless to take decisive action.

 

As a wise man once said - when there is a will, there is a way.  If you are serious about your financial goals, you are definitely going to achieve them no matter how ambitious you are there.

 

Don't lose hope and keep hustling.  And the best way to start your journey to financial freedom is to give your support to this website by sharing in social media.

That's how you are going to help to make more similar blog posts. And if you are new around here, check out another informative blog post in this website. Thanks for reading and until next time.