This is the third and final part of my series examining the question, I’m Frugal So Why Am I Poor?Â You can find the first part here, and the second part here. The first reason for still being poor was insufficient income, the second reason was uncontrolled spending in certain areas.
The third reason I’m still poor is that I never had a plan to save. Even if you are frugal and have a decent income if you don’t have a plan to save or invest you will probably end up with nothing. Or at least with less than you would have had otherwise. If you don’t have a plan to invest part of your income you have a good chance of spending it all even if you are frugal. If you don’t spend it all but just leave the money in your checking account or a low-paying savings account you money is not going to grow nearly as much as it should. This is why you should have a plan to save a certain percentage of your income. The savings should come out of your income first. Then you need to invest that money so it can grow.
Just changing these three things should keep me from remaining poor. The sad thing is I’ve pretty much always known these things but just haven’t put them into action. It is now my goal to fix all three of these things this year and start getting ahead financially. I know I would be much better off if I would have started earlier but I just have to do the best I can now.