 Many factors play into the widespread local poverty in the world today but one primary reason why poor people get murdered in the quicksand of poverty and debt is the poor choices that they make and the lazy attitudes that they portray. In this video I will be relating 5 mistakes that all poor people make. This video is not in any way meant to condemn people's personal choices but it seeks to point out errors with the help that you who have already made mistakes will take steps to fix them while those who are yet to make them will avoid them. 1. Not making adjustments according to life's changes. What do you do when you get a new job? Move to another locality or even lose your job? Do you make necessary shifts to your budget and expenses or do you let them remain as they are? If the latter is the case then it is a reason why you are still poor. Pete Bush a CFP with Horizon wealth management once stated in an interview that successful people understand that every transition you go through has a financial implication and they make sure to build a plan for those turning points. He further illustrates this point using a football match. Think about it like football Bush says. The coaches have a game plan heading in. But let's say the quarterback running back and lineback gets hurt in the first quarter and is out of commission. The original intention is now irrelevant and they have to come up with a new blueprint. However poor people will continue to leave the way they have been leaving even after a significant life transition. When their lives are zoom and U-turn they don't bother to find time to sit down, look deeply into their finances and make adjustments. 2. Focus on saving rather than earning In his book Rich Dad Poor Dad, Robert Kiyosaki mentioned that one peculiar difference between the rich and the poor is found in their approach towards acquiring items. The rich man asks how can I afford this and then increases his means of income. But the poor man says I cannot afford this and then ignores it. While saving a percentage of your income is a beautiful idea, you should also know that you can only save as much as you earn. You may try to increase your savings but if your earnings remain the same, incrementing savings will make little or no difference. As you will end up spending your savings on the essential things you ignored initially. For instance you may decide to reduce the amount of money you spend on food just so your savings can increase. Although your savings might increase by a few bucks, in the long run you may fall sick because of malnutrition and may end up spending the money you saved and even extra to treat yourself. One very terrible mistake made by poor people is increasing the amount of money they save instead of the amount of money they earn. Keeping $50 or $100 extra is nothing compared to an additional $1000 to your earnings. Millionaires do not spend their money wastefully. However they recognize the importance of having other means of income as a way to get to their financial destination faster. 3. Live in above financial budgets Daily, weekly, monthly and yearly, many people set budgets. Preparing budgets is a simple task. There are several applications on the web and play store that make it even more comfortable. Nevertheless, it takes you and your discipline to spend as per your budget. Despite their incredible budget and tactics, lots of people still find it challenging to keep tabs of their spending. When people think about the type of lifestyles the rich can afford, they picture expensive designers, vacation and money in the air. But wealthy people are more down to earth than you might imagine. So if you want to come out of the rat race, you have to be able to master self-discipline. Many people do not see the relevance of discipline. They assume that the higher your income, the easier it will be to stick to the budget. But that is a big fat lie. No matter how much a person earns, if he or she does not possess the ability of self-discipline, sticking to said budgets is impossible. Poor people find it hard to stay on course with their budgets and that is why irrespective of the amount of money that comes to them, they remain poor. But rich people understand and live by Sue's old man's saying. Just because you can afford it, doesn't mean you should buy it. 4. Not setting financial goals. What are your current financial state and net worth? What financial position do you see yourself in the next one year? Two years. Five years. These questions are questions that many poor people do not consider necessary to answer. But S-chilling a financial plan and not setting goals can set you up for financial problems. Being wealthy depends mainly on having written long and short-term financial plans and sticking to them. A recent study by the University of Scraton revealed that 92% of people who do not achieve their goal fail as a result of a lack of planning. People who do not plan for how to manage their money and who lack a budget are vulnerable to impulse buying, overspending and making other unwise decisions. Their vulnerability is based on the fact that they have no focus and as such can be swayed easily. No matter how much you earn, if you do not have a financial plan and goal, you will derail from your headset objective and you will never be wealthy. 5. Choose price over value According to entrepreneur and author Philip B. Crosby, quality is free. It's not a gift but it's free. The inferior things are what costs money. Have you ever been in the position where you had to choose a $10 shoe over a $50 shoe? Even when you know the former is of inferior make, the reason for this decision in many cases is not because the money is not available. In fact, on some occasions the money was gifted to you for the primary purpose of buying quality shoes but your frugal mind sells you out with the thought of having to keep the change. The rich people know better than the cheapest route is often not long lasting. They understand and when you go for things with little value, you'll have to spend more because sooner or later they will go wrong and you will have to get another. Besides, poor people tend to want to manage things. When a utility gets bad like a pipe or the oven, instead of fixing it properly or replacing it they will first call on the handyman to make patches. The truth is, it is more expensive to pay for a rock bottom priced item than to pay for a best valued product. To become wealthy you do not only learn about and practice the attitude of the rich, the most significant learning is to understand the poor and avoid habits that make poor people stay poor.