Money: The 5 reasons why people don’t have enough (2024)

Money: the 5 reasons why people don’t have enough

Do you have enough money? Which of these 5 reasons holding you back from achieving the financial goals you want for yourself and your family?

This video outlines the 5 reasons why people don't have enough money, and what they can do about it. For your convenience the transcript can be found below if you would rather read it.

At the end of the article there are some extra resources that you will find useful, and the references made in the video are listed out for you.

Transcript of the video

Modified slightly for readability (the way I speak is somewhat less formal than the way I write!)

Hi, I'm Jeremy Lazarus. I'd like to talk to you about money or, more specifically, the five reasons why people don't have as much money as they would like.

What qualifies for me to talk about this?

Since 1999 I've been a business coach and an NLP trainer, and prior to that I spent 18 years in the world of finance. I'm a qualified accountant, qualified corporate treasurer and I was a finance director; so I know a bit about money and a bit about people. So let's look at the five reasons why people may not have as much money as they would like.

The first reason is that it's just not important enough to them.
They may think it's important to them but deep down is just not important enough to them. Now if that's the case, one of the things that you could do is to make a list of 10, 20, 50, 100, 200 reasons why it would be useful for you and other people for you to make money. So make a list of the reasons to have money.

The second reason is what I call 'negative emotions'.
It could be fear, it could be sadness, it could be guilt. So it could be the fear of having money; the fear of not having money;the guilt of of having money (for some people, if they have money they feel guilty about it).

The third reason is limiting beliefs in other words the beliefs we have about money and what it represents.
Beliefs such as, 'I don't deserve money', 'people from my background don't make money', 'I'm just a poor boy or poor girl,' or 'someone from my background doesn't make money', or 'money is the root of all evil', or 'money's bad'. Those kind of limiting beliefs which can prevent you from actually making money or, if you make it, you don't keep it.

The fourth reason is a lack of awareness about how money works.
A lack of awareness of how to have to use the money you've got; how to save it, how to invest it, how to avoid bad debt. For example credit cards; spending money on credit cards on things you can't afford or things that have got zero value or just disappear very quickly, like going on a holiday. You have a holiday, spend a thousand pounds on your credit card, you come back, you've got nothing to show for it. Possibly a few photographs; are those photographs worth a thousand pounds? Probably not. So the fourth point then is a lack of awareness about money; how it works; how to invest it; how to save it and the ways to spend money.

The fifth reason is a lack of knowledge about how to make sufficient money in your work or your business.
All things being equal, if you want to make money and be more wealthy, it helps if you earn money. So then you've got money to invest and use wisely.

So I've mentioned these five areas, the question is what can you do about them?

For the first point I mentioned (motivation), just make a list of reasons why money is so useful for you.

In terms of negative emotions (point 2) and limiting beliefs (point 3), make a list of the limiting beliefs or the negative emotions. Make a list of several counter factors. So for example, if you think that you that money is bad, make a list of at least three if not five, ten, fifteen, twenty reasons why money is a good thing for you to have. If you think that people from your background don't deserve to have financial wealth, make a list of people from your background who have done really well and make money, and reasons why you do deserve to have that despite your background; so find the counter examples or the contradictions.

In terms of the fourth point, regarding knowing how money works and understanding how to save, how to invest, how to spend it and how not to spend it - educate yourself. Either read books, go on courses, or speak to people who are really good with money. Quite frankly, just educate yourself! There are lots of good books out there (you can download a list of resources below).

The fifth point about not knowing how to make as much money as you can from either your work or your business. Again it's about education. If you're employed, find out what you need to do to progress in your organisation, and take action to do that. It will probably mean doing some kind of course or reading or getting a qualification of some kind. If you run your own business, it might be that you need to get even better at providing the service you provide, or learn how to market yourself even more effectively. Whatever it takes, learn what you need to earn more money from your career, your job or your business so you have more money to invest.

Clickhereif you would like to find out more aboutThe Money Power Programme.

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Money: The 5 reasons why people don’t have enough (2024)


Money: The 5 reasons why people don’t have enough? ›

A lack of awareness of how to have to use the money you've got; how to save it, how to invest it, how to avoid bad debt. For example credit cards; spending money on credit cards on things you can't afford or things that have got zero value or just disappear very quickly, like going on a holiday.

Why don't people have enough money? ›

A lack of awareness of how to have to use the money you've got; how to save it, how to invest it, how to avoid bad debt. For example credit cards; spending money on credit cards on things you can't afford or things that have got zero value or just disappear very quickly, like going on a holiday.

How many people don't have enough money? ›

As of May 2023, more than 1 in 5 Americans have no emergency savings. Nearly one in three (30 percent) people in 2023 had some emergency savings, but not enough to cover three months of expenses. This is up from 27 percent of people in 2022. Note: Not all percentages total 100 due to rounding.

Why don't some people save money? ›

Failing to Set Goals

Having a specific goal or target you're trying to reach helps you to stay focused on what it is you're trying to achieve. If you don't have a goal in mind of how much you want to save or what you want to use the money for it's easy to let other things take priority.

How to handle not having enough money? ›

Money experts suggest making a budget, maintaining a log of daily expenditures, and setting specific short-term and long-term financial goals to overcome the feeling of cash crunch.

Why most of the people don t get rich? ›

The primary reason for underachievement and failure is that the great majority of people don't decide to be successful. They never make a firm, unequivocal commitment or definite decision that they are going to become wealthy. They mean to, and they intend to, and they hope to and they're going to, someday.

Are most people struggling with money? ›

If you are facing financial stress right now, you are not alone. According to a recent Ramsey Solutions study, 34% of survey respondents indicated that they were either facing financial struggles or were actively in crisis.

Can $1000 last a month? ›

The harsh truth is that $1,000 per month is very hard to live on, even if you lower your costs to the bare minimum. With inflation causing the prices of goods and services to increase every year, $1,000 a month will become harder and harder to live on going forward.

Why am I struggling financially? ›

It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it's a combination of problems. Make a separate plan for each one.

How many people don't have $500? ›

How much money Americans have in their savings accounts—nearly half have less than $500. Nearly half of Americans have $500 or less in their savings accounts, an amount that leaves them vulnerable to unexpected expenses, according to a GOBankingRates survey of 1,063 U.S. adults conducted in November 2023.

Why do Americans save so little? ›

“People are hit on both fronts — lower real wages and higher rates.” That makes it particularly hard to set any money aside, said Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California, and a member of CNBC's Financial Advisor Council.

Why do poor people save less? ›

The economic choices of the poor are constrained by their market environment. For example, some may save little because they lack a safe place to put their savings. Other constraints result from a lack of shared infrastructure.

Why do most Americans not save money? ›

For many people, the balancing act between income and expenses leaves little wiggle room for savings. The majority of Americans — 60% according to a LendingClub report — live paycheck to paycheck, with no additional funds left over after they cover expenses each month. This leaves few options for saving money.

Are people struggling financially? ›

Only 48% of Americans have enough emergency savings to cover at least three months' worth of expenses, as of May 2023. 22% have no emergency savings at all. Americans' debt is piling up. 36% of U.S. adults have more credit card debt than emergency savings, as of January 2023, the highest percentage since 2011.

How to stop being broke? ›

How can I stop being broke?
  1. Stop spending more than you make.
  2. Budget your monthly earnings to have money left over.
  3. Increase your earnings through higher pay or working more hours.
  4. Start acquiring assets.
  5. Stop acquiring more debt.
  6. Save up an emergency fund.
Dec 21, 2022

Why is having enough money important? ›

Money provides security and control

Having enough money also provides a sense of security, one that is often missing when people worry about unforeseen medical expenses or losing their job.

What is the poor people mentality about money? ›

A scarcity mentality is a common characteristic of a poor mindset. People with this mentality believe that resources are limited and that there is not enough to go around. They feel jealous or resentful of others' success and believe that if someone else succeeds, it means there is less opportunity for them.

Why do people spend so much money on things they don t need? ›

These reactive purchases have become known as the Diderot Effect. The Diderot Effect states that obtaining a new possession often creates a spiral of consumption which leads you to acquire more new things. As a result, we end up buying things that our previous selves never needed to feel happy or fulfilled.

Why is it expensive to be poor? ›

Unfortunately, low-income families often lack the skills and resources to be savvy consumers. They are less likely to have access to the Internet, newspapers and other resources to comparison shop and learn good money management in order to get the most for their dollar. At the end of the day, it costs more to be poor.

Are people happier with less money? ›

Reconciling previously contradictory results, researchers from Penn and Princeton find a steady association between larger incomes and greater happiness for most people but a rise and plateau for an unhappy minority.


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