Why Being Broke Is Harder Than Being Wealthy
Everything is cause and effect.
There is literally a law of physics that states this as “for every action there is an equal and opposite reaction.”
We are either the cause of something or we are the effect of something.
Sometimes we can be the effects of our causes and sometimes we can be the cause of our effects.
What I mean by this is every decision we choose to cause or be affected by, has ripples. This is especially true with money.
And these ripple effects may continue a lot longer than we’d anticipate.
For example, I may choose to cause a healthy lifestyle and be the effect of that in a positive way. My effect may cause me to also decide that I need to buy new clothing because I’m getting in shape now. Get my point?
But what I want to talk to you about is cause and effect as it relates to wealth.
Financially, we are either progressing or regressing. There is no static position. It really is like a sport or a game. If we have more wins than we have losses, then we succeed. If we have more losses than we have wins, we either fail or improve. I want to start us out in agreement by saying losing the game takes energy, work, time, etc. Winning the game takes all of these things too. In other words, winning takes energy and losing takes energy. I truly believe that losing and winning take the same work. Winning is hard. Losing is hard. It’s a level playing field as far as that is concerned. We can observe this with professional sports teams. They both practice, travel, get out there on the playing field or court and exert effort. But only one of them wins even though both expended energy.
Specifically, with finances, winning is summed up with the word wealth. Wealth is the effect of what we cause with our finances. Here is the work involved with creating wealth:
1. Training on finances
2. Increasing income
3. Saving money aside (40% of your gross income)
4. Investing
I can attest that doing these things is work. And those are just the bullet points too. There are details involved in each one of those steps that also require work.
Let’s take a look at what it takes to be financially broke. Being broke is also the effect of what we cause with our finances. Here is the work involved:
1. Don’t train on finances (the work here is doing other things instead, which is usually voiced in “I’m too busy”)
2.Do not increase income (Paycheck to paycheck isn’t easy)
3.Overspend (Buying things takes work and is more work particularly when you’re stressed out)
4. Do not save money aside (Because we worked to overspend it)
5. Get into debt and struggle to pay it off
6. Don’t invest
Do you notice that there are actually more steps to being broke than to being wealthy? It is literally more work and more complicated to be broke than to build wealth.
Not only that, but the steps on being broke sound much worse!
Let’s also keep in mind the fact that the result of building wealth causes a positive effect on the rest of your life and being broke causes a negative effect on the rest of your life and there will be energy and work involved in dealing with those negative effects.
The good news is that if you’ve had the persistence and focus to be BROKE (like I have in the past) you should have no trouble becoming wealthy. They are both work, and energy exerted and the secret that the wealthy never tell you is that causing broke-ness is MUCH harder and taxing than causing wealth!
So, if you’re a good person who wants to help make the world a better place and this article helped you, I want to encourage you to start planning your next quarterly trip and putting this into practice. And feel free to write to me and let me know how it went.
If you’re a client of mine and you’d like help leveling up, send an email to my team with “Level Up” in the subject line to [email protected] .
If you’re a follower and have not read my book The Blueprint to Financial Freedom yet, that is the place to start. This book covers the specifics for each level in the various chapters and you can grab the book for free as my gift.
Click here to get a copy!
The Blueprint to Financial Freedom by Jerry Fetta
To Purpose, Wealth & Freedom,
Jerry Fetta
Jerry Fetta is the CEO and Founder of Wealth DynamX. He is a nationally recognized financial expert featured in Forbes, Yahoo Finance, Fox, Chicago Weekly News, New York Finance, interviewed on 100+ podcasts with world renowned experts, earning endorsements and affiliations throughout his career with names like Kevin O’Leary, Grant Cardone, Dave Ramsey, and Pamela Yellen.
Jerry’s mission in life is to help create millions of financially educated and solvent families achieving greater financial freedom and sharing the truth about money with those around them.
Learn more at www.WealthDynamX.com
(DISCLAIMER: The information in this content should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Wealth DynamX can and does not provide advice unless/until engaged by you.)