Hey there! We all dream of being rich, right? Of course! Because no one wants to become poor and live miserably. You’ve probably seen a ton of videos on how to get rich fast, and maybe you’re tired of hearing the same advice over and over.
So, let’s flip the script! Instead of talking about how to get rich, in this blog, I’m going to share with you the fastest ways to end up broke. But wait. You might say, “Nobody wants to be broke and poor!” Of course, but it’s also very important to know how someone can end up broke and poor so you can avoid it.
After all, how can you avoid a mistake if you don’t know what it is? So, here are the 10 fastest fucking ways to be poor and broke. Close your mind. If you’re reading this blog. Congratulations! you’ve just avoided the number one way to be poor. Closing your mind means you don’t want to learn about other things, especially when it comes to money. No financial knowledge, no money management, no investing—nothing. The reality is, there are still a lot of people out there who lack financial education.
Now, financial education isn’t about teaching you how to work at stock market or financial institutions. It’s about teaching you how to manage your money and build wealth. When you don’t have a plan for your money—no goals, no budgeting, no savings—you’re financially illiterate. And that’s a problem. Some people might say that financial education is nonsense and not meant for poor people.
Well, let’s talk about a guy named Ronald Read. He came from a poor family and worked most of his life as a gas station attendant and janitor. And you know what? He died in 2014 with an $8 million fortune. How did he do it? With a minimal salary, he lived frugally and invested the rest of his money into stocks. If he didn’t understand the importance of investing and money management, he wouldn’t have died rich with $8 million. With that money, he might have been even richer than his own manager, who likely earned triple or even quadruple his salary. So, if you’re wondering what’s the point of financial education, Ronald Read is the perfect example.
According to the S&P Global FinLit Survey in 2018, only about 33% of the global adult population is financially literate. And that’s why financial illiteracy is still somehow a global problem now. Spend more than you make. Actually, this is the most classic and simplest way to become poor quickly. We all see influencers flexing luxury cars, designer clothes, and expensive vacations, making it tempting to live a lavish lifestyle. So, let’s say you start spending your entire paycheck on fancy dinners, the latest gadgets, and trendy clothes.
And what happens when the money runs out? Instead of cutting back, you take out loans or credit card debt to keep up your lifestyle. It might feel good for a while, but soon, the bills pile up, and the interest rates start kicking in. For example, in 2024, the Federal Reserve and U.S. Census Bureau reported that the average American carries around $8,600 in credit card debt. You might say, “But the economy is bad right now. Crisis, inflation, everything!”
However, a March 2024 survey by Bankrate showed that 36% of Americans still plan to take on debt for summer holiday. Additionally, 45% of American parents with children younger than 18 admitted to taking on debt for Disney vacations, with little to no regret after that. It’s not just the U.S. But this also happens around the world that make it a global problem. So, the main problem is we live in crisis, but we spend like in booming economy. Don’t plan anything. A Chinese philosopher named Sun Tzu, who wrote the famous “Art of War” once said: “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.”
So, he means that you must plan all things before going to war, so you know what to do as you’ve calculated everything, and you win the war. While the loser will not plan anything, and doesn’t know what to do, and lose to the one who planned. And this is not only in war, but also in everyday life especially in finance. The most important financial plan you can make is a budget. Budget is a plan how much will you spend your money. Without a budget, you have no idea how much money you’ve spent or how much you have left. You might think you still have enough money to keep spending, only to find yourself empty-handed when you need it most.
So, instead, you should set your budget and plan. Like how much for food, transportation, utilities, entertainment, rent and more. So, you can manage to have the rest money as saving and investment. By doing this, you can have your life at ease, and no need to be haunted by debt or bills anymore. Develop addictions. If you want to get poor quickly with some “fun” along the way, developing addictions is the way to go. Drugs, alcohol, gambling, prostitutions, and other bad habits are like a deadly combo for your life and wallet. If you are addicted to drugs, Drugs not only destroy your body but are also expensive. Add in the cost of medical bills, and you’re draining money fast.
Addicted to gambling might seem like an exciting way to win big, but in reality, the house always wins. You might get lucky and win $100, but most gamblers don’t really count how much money they’ve spent in order to win that $100. If they spent $1,000 to win $100, then it’s obviously not a smart move. And then there’s addicted to prostitution. You are draining your money on prostitutes, ruins your family, and could even leave you broke after a divorce. Plus, you might end up with AIDS. It’s a path that leaves you with nothing but regrets. For example, Michael Caroll who worked as waste collector, won £9.7 million lottery in November 2002.
Instead of planning how he would use the money to change his life, he spent it all on luxuries, drugs, alcohol, and sex parties. And, as expected, by 2010, he had lost all the money and returned to his old job as a waste collector. At least, he has no regrets at all. This is a perfect example of how addiction can destroy your life and money. FOMO. FOMO, or Fear of Missing Out is when you worry about missing out on something important or fun, making you rush into decisions without thinking clearly. For example, Dogecoin. Back in early 2021, Dogecoin, a cryptocurrency that started as a joke, suddenly went viral. Social media was full of people talking about making money from it, and famous people like Elon Musk and Snoop Dogg were talking about it.
Everyone seemed to be buying Dogecoin, and you felt you needed to join in too. Your friend might even say, “If don’t buy Dogecoin now, you’ll miss out this big opportunity.” Even though you didn’t fully understand how cryptocurrency works, you were afraid the price might go even higher. So, you put your savings into Dogecoin, hoping for quick profits. But because you didn’t know much about the market, you didn’t realize that Dogecoin was starting to lose value and competition to other cryptocurrencies. The price peaked at around $0.74 in May 2021, but by the end of the year, it had dropped to about $0.17. When the hype died down, you ended up with losses instead of gains.
This shows how FOMO can lead to quick risky decisions that will drain your money. Section 6. Get-rich-quick scheme. But wait. Getting rich quickly sounds great, right? Who wouldn’t want that? Unfortunately, the reality is that about 99% of get-rich-quick schemes are more like get-poor-quick traps. These schemes often lure people in with promises of high returns with little to no risk, but they usually end up being incredibly risky or fraud in the end. Also, most get-rich-quick schemes are also influenced by FOMO too. Take, for example, the infamous Bernie Madoff Ponzi scheme, where investors were promised steady, high returns with little risk.
It turned out that the returns were fake, and Madoff was using money from new investors to pay off earlier ones. When the scheme finally collapsed, thousands of people lost their life savings. You can also watch the full explanation here too. And something you need to consider is: if getting rich were really that easy, why would the people behind these schemes need you? They’d probably keep it to themselves and quietly make big money, right? Even if some get-rich-quick schemes, like MLM, are legal, you should still be careful. Always do your research and think twice before jumping into anything that promises fast money with little effort.
Never save. If you want to get poor with some “surprises”, then just don’t save money. One of the biggest mistakes financially illiterate people make is spending all their money without setting anything aside. As most people just thinking about present time and don’t really have plan for the future. You’ve probably heard financial influencers say, “Don’t let your money just sit in the bank doing nothing—invest it so your money can work for you!” While it’s true that investing can grow your wealth, it’s also important to remember that investments can fluctuate in value and aren’t always easily accessible in an emergency. This is why it’s crucial to set aside money specifically for an emergency fund.
And what exactly is an emergency fund? It’s money set aside to cover unexpected expenses like job loss, medical emergencies, or crises like a pandemic. The general formula is to have enough saving to cover 3 to 6 months’ worth of living expenses. And the more you can save, the better. For example, if you suddenly lose your job and have no income, your emergency fund can sustain you for several months while you search for a new job. But if you don’t have an emergency fund, you could quickly find yourself broke and needing to borrow money at high interest rates.
According to a CNBC and Acorns survey, nearly 14% of Americans wiped out their emergency savings during the pandemic. Without an emergency fund, you risk getting poor at the first unexpected expense. So, skipping the habit of saving money will make you poor very quickly. Section 8. Spend too much on liabilities. So, what are liabilities? Liabilities are things you buy that don’t make you money. For example, if you buy a house and rent it out, it can bring in rental income. In this case, the house is an asset. But if you buy a house just to live in, it costs you money for things like maintenance and property taxes.
That house becomes a liability because it doesn’t make you money. The same goes for cars. Many people want fancy cars and think they are a good investment. But remember, cars lose value quickly. When you drive a new car off the dealership, it loses about 10% of its value right away. So, whether it’s Audi or simple Toyota, it will still get you to your destination. But most of you still need car for work and life, whether it’s liabilities or not. Well, that’s okay. But remember! If your budget is limited, don’t spend too much on an expensive car or take out a loan for it. So, instead, you can buy much cheaper and simple car, or even you can buy a good second-hand car. As you must keep your liability as low as possible.
When you become successful and have more money in the future, then you can buy whatever you want. Section 9. Neglect your health. If you live in a country without free healthcare, like the U.S., ignoring your health can lead to huge medical bills and serious suffering. Unhealthy habits like eating junk food, drinking sugary drinks, and not getting enough sleep might not seem harmful now, but the damage could start showing up 10, 20, or even 30 years later. So, believe it or not, investing in your health would be your best financial decision you’ve ever made. Not only does this help you avoid costly medical bills, but it also ensures you can enjoy a better quality of life.
Surround yourself with negative influence. There’s a saying: “If you’re the smartest person in the room, you’re in the wrong room.” (Okay, unless you’re a kindergarten teacher, then you’re doing just fine.) This means you should seek out people who are smarter and wiser than you, as they can offer valuable insights and positive influence. Your friends and social circle have a big impact on your life. If you hang out with gamers, your conversations will revolve around gaming. If you’re friends with successful investors, you’ll discuss investment strategies. But if you surround yourself with drug and gamble addicts, you’ll find yourself likely ends up doing drugs and gambling as well.
For example, you might know Tiger Woods, one of the best golfers in the world. He won numerous tournaments, signed many deals with major corporations, and was admired by many. Then he befriended other famous athletes like Charles Barkley and Michael Jordan, who were known for their gambling problems. They started influencing Tiger to gamble as well. He began with modest bets, but soon he was placing bets of $100,000 or more. Over time, his gambling issues led to significant financial losses, with estimates suggesting he might have lost up to $50 million over several years. This shows how surrounding yourself with negative influences can have serious consequences.
It’s important to choose your social circle wisely and seek out positive, supportive relationships. And there you have it, the 10 fastest ways to be poor. So, instead of just focusing on how to be rich, you should also understand and avoid these deadly ways that could make you poor. You might think you’ve done a great job of becoming rich, but if you’re still doing what I just mentioned, maybe it’s time to change. Because getting rich is only half the battle, and keeping your wealth is the other battle. Many rich people have lost everything because they fell into these traps. And don’t let that be you. If you want me to make other videos explaining these topics, please like and subscribe. Thanks for watching.
