Going broke is an issue that affects many people and is caused by a variety of factors. Low wages, debt, unexpected expenses, and a lack of financial literacy are all issues that can lead to financial hardship.

Low wages are a major factor in people going broke. With wages stagnating, many people are unable to get ahead and are unable to save for a rainy day. This leads to a cycle of living paycheck to paycheck and not having enough money to cover unexpected expenses.

Debt is another major factor in people going broke. Credit cards, student loans, and other forms of debt can quickly spiral out of control and lead to financial ruin. Many people are unable to pay off their debt and are stuck in a cycle of interest payments that they can never escape.

Unexpected expenses can also lead to financial hardship. Car repairs, medical bills, and other unexpected expenses can quickly add up and put people in a difficult financial situation. Without an emergency fund, people can quickly find themselves in a difficult financial situation.

Finally, a lack of financial literacy can also lead to people going broke. Many people are unaware of basic financial principles such as budgeting and saving for retirement. Without a basic understanding of how to manage their money, people can quickly find themselves in a difficult financial situation.

If you want to learn more about wealth building and how to avoid going broke, visit BoyceWatkins.com. Dr. Boyce Watkins is the author of the book “The 10 Commandments of Black Economic Power” and he provides advice on how to build wealth and avoid financial ruin.