5 Ways to Go Broke in 2020

Here are some of the simplest ways to go broke. Try to avoid these in 2020.

1. Showing Off. Don't buy a fancy car, expensive designer clothing, and every new pair of Jordan release just to impress your peers and post pictures on social media. The extra money spent could have been used to invest. Instead, stick with the necessities - a car with little to no monthly payment that will get you from A to B and back, clothes that fit, and shoes that are comfortable.

2. Being Lazy. Laziness leads to excuses, inefficiency, and lack of productivity. Eating out, reclining while eating snacks, and poor diet and exercise can lead to laziness. Ultimately, a lazy person ends up having a more expensive lifestyle than a person who is determined and well disciplined. You can save hundred of dollars a month by cooking instead of eating out. Also, eating full meals and exercising regularly will reduce the cravings for habits that lead to laziness and a non-productive lifestyle.

3. Get rid of Addictions. Many people waste money on addictive habits like drugs, alcohol, and partying regularly. When taking a look at a person's expenses related to non-beneficial addictive habits, they add up pretty quickly and could have been invested more wisely. At the end of the day, if its not helping, its hurting you.

4. Debt. Allowing your debt to add up will not only effect your credit, but compound interest over time. You are better off making small consistent payments than none at all. Also, adding more credits cards to your arsenal will only create more debt if not handled responsibly. Try to keep your debts as low as possible and avoid living beyond your means. If you are unable to pay a credit card balance in full before or on the due date, then keep your balance low so that you can.

5. No Financial IQ. Get a mentor. The only way you can learn about finances is from someone who has already proven to be successful with finances. This means read, read, and read some more. There are tons of books available that teach about finance like "Rich Dad Poor Dad by Robert Kyosaki", "Think and Grow Rich", and many others. It is also good to invest in courses that teach financial literacy and money management. If you don't have the money, start with google and YouTube keyword searches like How to manage money.

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