We all know that the two biggest factors that take away money from people are the government and the banks. However, there's a third factor that many people don’t often discuss, which I mentioned in this post. While it's easy to blame these entities, the real issue lies within ourselves. Many individuals prioritize their happiness over making sound financial decisions. We often fail to pay ourselves first before addressing our obligations to these two major players. Instead, we pay them and feel satisfied without considering our financial well-being.
Government
Many people argue that taxes are bad, claiming that only the poor pay them while the rich do not. However, if you look at well-functioning societies today, it is clear that citizens actively pay taxes. While taxes may not be the sole reason for a country’s success, it has been demonstrated that these countries generate significant revenue from taxes, which contributes to their prosperity. In contrast, in many African countries where tax collection is taken less seriously, we observe widespread struggles. However, I believe that this issue is not the primary reason for your inability to save money.
Many individuals in Africa earn significant amounts of money, yet they often struggle to manage it effectively. Even in cases where they are not paying taxes due to the relatively lax enforcement in some areas their financial challenges persist. While many governments implement policies to improve citizens' quality of life, contributing your fair share to the government is essential. Ultimately, the primary reason for financial struggles is not solely tax-related, it often stems from a lack of readiness to improve one’s financial situation.
The bank
People often blame banks, but this perspective overlooks some important factors. Many individuals feel excited about borrowing money, especially when it's for purchasing a new car or acquiring luxurious items. However, in countries where taxes are mandatory, taking on debt can quickly become overwhelming. When you're obligated to pay the government while also repaying the bank, it can strain your finances significantly. I’m not saying that debt is naturally bad, but if it doesn’t generate income and instead empties your finances, it can become a serious problem. This situation can be particularly challenging if you’re already paying taxes, leading many people to find themselves trapped in a cycle of debt.
We are the bigger problem.
One of the major problems we face is that we prioritize everything else over ourselves, especially when it comes to money. We often lack a solid financial education, which leads us to treat ourselves as a lower priority. Even when we do have some money left, we tend to spend it on things that make us happy like our wants rather than focusing on our needs. At the end of the day, we blame the government and banks for our financial struggles, but the real issue lies within us. We fail to pay ourselves first and consistently make poor financial decisions.
Pay yourself first
It’s essential to prioritize your financial well being by investing or saving a portion of your money before addressing other expenses, this is what it means to pay yourself first. Instead of blaming the government or banks for taking their share, we should focus on our financial habits. Many people tend to consider themselves last, using their money to buy things that bring temporary happiness rather than fulfilling their genuine needs. Ultimately, this leads to placing blame on external factors like the government or banks for their financial struggles.
thanks for your time.
