A Poor Mind is that which does not have any future plan on how to effectively and efficiently manage the money that comes his way. He neither saves nor invests. He is sometimes seen as someone who wants the praises of his peers and other people because of immediate gratification.
POOR FINANCIAL DECISION AND PLANNING
Failure to plan and make the right decision on how to manage the money that comes to you results in other people, circumstances and events to help you plan on how to spend it wrongly. Poor minds lack the ability to plan and manage their money as they allow people and events to dictate to them on how to spend their money. They sometimes do this for show off as such, they live fake life in pretence. They do things which ordinarily they cannot do and say what they cannot do because of peers. The do not have investment plan in their agenda as they believe that money is meant to be spent as it comes because it would always come. This leads them to make poor financial decisions.
LACK OF CLEAR CUT DIFFERENCE BETWEEN NEEDS AND WANTS
In Poor Minds, there is no clear difference between needs and wants. As such they justify their consumption pattern by disguising wants as needs. The fact is “everybody wants a nice car, wants to go on an expensive vacation, appear in the latest and expensive designer dress, visit the latest and most expensive hotels, and shop outside the shores of one’s country among others”. The truth is “it is not everyone that needs all these because only few can afford them”. The Poor Minds often live flashy lifestyle. They would buy the cars they do not need, go on vacation because others are going, attend societal occasions to be recognised, attend and spend at events to intimidate others. All these and many others are the lifestyle of the Poor Minds.
One of the reasons why Africa is the most backward continent in the world is because most Africans engage in ostentatious spending. By ostentatious spending, I mean a pretentious and showy display of money for immediate gratification. The average African would want to show off at events and occasions in order be attract the immediate attention of peers and other people at the event. In Nigeria, people can spend lots of money to organise birthday party, burial ceremony, wedding and other ceremonies or events. They do so for such events to be the talk of town for that moment, without considering the aftermath and life after such events. These are some of the unimaginable things that the Poor Minds do to gain popularity and to be known.
Nothing makes one a bad manager of money as unplanned purchase. Purchases made by Poor Minds are mostly unplanned. Here are some good examples of impulse purchase is “Mr Poor Mind goes home from work, still on his way, he turns sees a nice shirt in a shop, he goes straight to purchase it with a perfume that he sees in along the way without any prior plan of buying a shirt. When one buys something because others are buying, it may also be seen as impulse purchase. In Nigeria for example, people buy asoebi because other people especially peers are buying. This they sometimes do because of the “fear of what people will say” as well as keeping up with the Joneses.
The Poor Minds spend money before it gets to their hands as such they do not even think of how to manage their money for future benefits. They think of what to eat, wear and where to go when money gets to their hand. Although, humans are designed that way but without discipline it will ruin human as money will not be left to cater for tomorrow’s need.
NOT CONCIOUS OF SAVINGS AND INVESTMENTS
There is this simple economics definition for savings which is “Savings equals Investment”. The formula is S=I. Economist believe that money saved, is money invested. Poor Minds do not save for the rainy day, forgetting that every day is not like any other day. Every day has its own peculiarity. Thus, it is very important that part of the money that comes into one’s hand is saved. They are not patient enough to see their investment yield returns as such they do not plan to invest any part of their money for future returns.
Thinking like Poor Minds is planning to live in penury. Being born into a poor home is not an excuse to be poor as being born into a wealthy home is not a guarantee to be and remain wealthy. Most of today’s wealthiest people are not children of the wealthy. Wealth and Poverty most of the time start from the mind. The way one thinks has a lot to do with his or her lives journey.
When Poor Mind goes about spending money lavishly and living flamboyantly to be recognised and be praised by peers and people around. He does not think that such money would have been better invested into ventures that would yield future returns thereby making him to live a better life as well as affecting other people’s lives in a positive way in future. So Be Smart and do not be like the Poor Mind.