Why I was always so broke?

Toyota invented the 5 Why analysis to evaluate the root causes of problems in their production systems. The process starts with a definition of the problem and then iteratively asking Why five times until the root cause is defined. Once the root cause is identified you then correct that issue and the problem resolves itself.

Let me demonstrate how I applied the 5 Why analysis to identify why I was constantly broke yet I was earning a lot of money.

Define Problem. I was struggling to meet all my expenses.

Why? Because I was spending more than I was earning.

Why? Because I had too many loans.

Why? Because I had borrowed to invest in things which had no cash flows.

Why? Because I did not do proper evaluation of the investments.

Why? Because I did not have proper financial education.

So the root cause of most of problems was that I was really ignorant when it came to money. So I decided to aggressively educate myself about MONEY. I read over 40 books on Business and Personal Finance and Personal development. I then started to slowly act by paying off the loans, saving some money, and prudently investing.

Today my personal finances have greatly improved and I can go through a whole year without a job and without liquidating any physical assets. Plus I am currently debt free and don’t intend to borrow again.

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