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Poverty consciousness isn't just for the poor. The middle-class and the rich are occasionally affected by this mindset. Poverty consciousness doesn't deal with how much money you make, but with how much you spend.

Remember the musician M.C. Hammer of "U Can't Touch This" fame? He made millions of dollars off of his hit, but ended up broke. Why? Because he had poverty consciousness and spent more money than he made.

You can make $15,000, $100,000 or a million dollars a year and still be living paycheck to paycheck. Spending all of your money, or more, is a problem that can be devastating. A person with poverty consciousness will buy many things because he or she figures that they won't have the money later. They'll purchase expensive items and max out their credit cards until they are faced with interest rates from credit accounts and loans. Now, the poverty conscious person is in debt and working to pay off bills rather than enjoying life.

With no saved money, immediate resources will not be available to handle emergencies, or to take advantage of a golden opportunity.

Poverty consciousness can be avoided by spending less than you earn. Save a percentage of your money from each paycheck. It doesn't need to be very much, even 5% to 10% of your income will do. When you get paid, immediately deposit your chosen percentage into your savings account and don't touch it. Do this with every paycheck, and before you pay any bills.

This will probably be hard to do at first, but do it anyway. The percentage you deposite would formerly have been used to pay bills, so you may be hesitant about this financial strategy. But if you take the cut for savings, you will still find a way to cover your expenses. You might get rid of an unnecessary item that you pay monthly on, or maybe you'll pull a few hours of overtime at your job. In any case, your savings will grow and so will your piece of mind, knowing that you always have money for any situation that may arise.