Often time I ask myself" why do very few people rich and majority stay poor?"

In my quest to find answers to this question,I realized that the rich and the poor differ in what they think about and what they do

In this video I'm going to tell you 5 habits that make people stay in poverty for life.

1. They live below their means!. The habit of live below your means is doing more harms than good. With a view to living below their means, they cut down important cost on things that can make them go forward in life. Instead of living below your means why not focus on increasing your means. If you will be realistic cutting down cost is like cutting down things that can make you happy. Psychologically most things we buy increase our happiness and self esteem.

In this short video I gave out suitable illustrations and reasons why people stay in poverty for life.

If you don't have data to watch, you can read the blog

https://moneyaffairsonline./2020/02/16/5-habits-that-make-people-stay-in-poverty-for-life/
In this age,information is an asset



https://www.youtube.com/watch?v=D17HBY5Li_Q


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this is informative and challenging

facenglish:
this is informative and challenging

Thanks

uprof:

Thanks

any way I have questions on this one

facenglish:
any way I have questions on this one

Go ahead and ask your question

uprof:

Go ahead and ask your question

why should we stop saving money in the bank?

facenglish:


why should we stop saving money in the bank?

Because savers are loosers

uprof:

Because savers are loosers

.why?

facenglish:

.why?

first is inflation

uprof:
first is inflation

how does that affect me

facenglish:
how does that affect me

You want to know I will tell you

uprof:

You want to know I will tell you

I'm listening

facenglish:

I'm listening

I need answer to this question

You buy with low quantity of goods with inflated amount

facenglish:

I'm listening

how does inflation affect my salary

Distinct123:
how does inflation affect my salary

you buy small quantity of Goods with inflated amount

uprof:


you buy small quantity of Goods with inflated amount

everybody buys inflated quantities of goods!

can mr FacEnglish attend to my questions?

Distinct123:
can mr FacEnglish attend to my questions?

yes I can answer your questions

facenglish:

yes I can answer your questions

good why shouldn't I live below my means? I don't think that is a very good advice

Distinct123:
good why shouldn't I live below my means? I don't think that is a very good advice

because it is doing more harm than good!

Distinct123:
everybody buys inflated quantities of goods!

Smiles.
He is not an economist, so, he seem unable to explain the concept well.

One way banks make their money is through giving out loans; a credit system. They lend money to their customers and collect it later with interest.

Let's say when someone borrows #1000 from bank with an additional interest of 30%, he/she pays back #1300 thereby, the bank profits #300.

Where does the bank get that money from? The primary source is depositors (you and I), assuming with a savings account, bank decides that every month, 5% would be alloted to you, so it means that after every month, you get an additional #50 to your deposited #1000.

Now, let's do a rundown, bank makes #300 after every month while you make #50,
What if you had use that money for other profitable venture, it's genial for you to recoup more that #50.
So, you benefit more using your money for investment than letting it lie dormant in your savings account. That's why we say savers lose.





2


With the passage of time, prices of goods and services tend to slope upward, this means that with time, prices increase. Some decades back, a beetle is sold for #30000 (assumption), but now in the 22nd century, it's worth millions.

In the same vein, if someone sold his beetle and saved his #30000 in a bank, 20 years later, he would receive back his 30k, would that money be able to buy him/her a beetle 20 years later?

So, he lose by saving that 30k in the bank because what 30k can buy in year 2000 differs from what it can buy in 2020.
This is what we mean by inflation, because that man saved his 30k in 2000 and collected it back in 2020, he lose. Though the nominal value is the same but the purchasing power has declined.


Smiles... Don't want to use economics terms but I hope you get what I'm trying to insinuate?

Jackossky:



Smiles.
He is not an economist, so, he seem unable to explain the concept well.

One way banks make their money is through giving out loans; a credit system. They lend money to their customers and collect it later with interest.

Let's say when someone borrows #1000 from bank with an additional interest of 30%, he/she pays back #1300 thereby, the bank profits #300.

Where does the bank get that money from? The primary source is depositors (you and I), assuming with a savings account, bank decides that every month, 5% would be alloted to you, so it means that after every month, you get an additional #50 to your deposited #1000.

Now, let's do a rundown, bank makes #300 after every month while you make #50,
What if you had use that money for other profitable venture, it's genial for you to recoup more that #50.
So, you benefit more using your money for investment than letting it lie dormant in your savings account. That's why we say savers lose.





2


With the passage of time, prices of goods and services tend to slope upward, this means that with time, prices increase. Some decades back, a beetle is sold for #30000 (assumption), but now in the 22nd century, it's worth millions.

In the same vein, if someone sold his beetle and saved his #30000 in a bank, 20 years later, he would receive back his 30k, would that money be able to buy him/her a beetle 20 years later?

So, he lose by saving that 30k in the bank because what 30k can buy in year 2000 differs from what it can buy in 2020.
This is what we mean by inflation, because that man saved his 30k in 2000 and collected it back in 2020, he lose. Though the nominal value is the same but the purchasing power has declined.


Smiles... Don't want to use economics terms but I hope you get what I'm trying to insinuate?

the content creator is also a student of economics if you want to add to the point add and live. The writer understand the time value of money. So contribute and don't criticise. There is a reason for make in short and brief

Actually you expand more on the inflation side. Which will be a consistent discussion on our Chanel, considering the consumer price index

facenglish:


because it is doing more harm than good!

how does it do more harm than good?

Distinct123:
how does it do more harm than good?

because living below your means does not make you think smart

uprof:
the content creator is also a student of economics if you want to add to the point add and live. The writer understand the time value of money. So contribute and don't criticise. There is a reason for make in short and brief

Ahhh, had a hard time reading this, but no P.
There's much for 'we' to learn anyway.

Oh, I didn't criticise what the op said, I only buttressed it and elaborated what he meant by inflation. If you feel contrary, then your comprehension skill might be a little ********


Adiós

facenglish:

because it is doing more harm than good!

I hope that is clear!

facenglish:


because it is doing more harm than good!

why live below your means is doing more harm than good!

Distinct123:
why live below your means is doing more harm than good!

it can make you poor because of

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crowniran:
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well done mr marketer