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16 Reasons You Can’t Escape The Poverty Trap

You don’t know much about personal finance

The majority of people who struggle with financial hardships don’t know much about personal finances, says the founder of Lazy Man and Money. For instance, many people don’t gather enough information before making a loan to know that compound interest when it comes to debts is not the same with compound interest when it comes to investments. One works for you while the other one works against you.

“I think the psychology should shift from ‘How can I spend money to make me happy now?’ to ‘How can I use this money to buy me financial freedom in the future?’” he says. If you can find a way to change the way you think and perceive money, you have more chances of success in overcoming all your financial problems, present and future ones.

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