A bankruptcy expert taught me these ten things about the reasons why people go bankrupt.

Bankruptcy is not related to the balance of the bank. Rather, it is a mentality.

I have written about a friend many times that he lost his $100 million empire more than 10 years ago. He remains bankrupt today. He and his family live in one hotel room and rely on government assistance.

We talk regularly. His husky smoked voice is evidence of his future health. Surprisingly, it still has some of the best business ideas I've ever heard.

But it never executes.

Not because he is lazy. But because he has no energy.

Somewhere deep down he doesn't think he can do it. Bankruptcy shattered his self-confidence and destroyed his faith in his ability to do anything.

We must understand how to program our minds to deal with failure.

Here are some additional things an expert who has worked with penniless people taught me about the reasons why society is bankrupt.

"Treat your credit card like a debit card"

Credit cards are a trap. Vampires push them to earn worthless frequent flyer points that are designed to be an elaborate scam.

"Just push it on time and you'll be fine."

It sounds simple, except that when you have access to an infinite amount of credit, it's very easy to overspend. Even for a disciplined marine I use a debit card that has rewards. Same benefits, but I spend only the money I earned.

Too much debt is a tax on your future.

"Your job will make you rich one day"

Jobs don't make you rich because being "rich" means more than just money.

Wealthy people really own their time. No stupid boss tells them what to do. They don't have HR masters who spread the annoying work culture and awaken messages that don't solve real problems.

The harsh truth is that you can never say or do what you want in a job – especially online.

Your creativity is suppressed so that your brain can be used for profit. You are paid a price slightly below the market price to ensure that you can make maximum money from the time of surrender.

We all start with a job. No problem.

But the job doesn't make most people rich in the truest sense. The sooner you get a moment of aha the better.

"Look at self-education as an account, not an investment."

Online courses and self-improvement attract their fair share of critics.

"Courses are a scam. Just search for information on Google."

These dolls forget that learning without a guide and nothing but a Google search engine will drain all your free time. Time is worth more than money.

Self-education saves you time. It's not an expense. It's how you learn skills that you can use to invest in your future and create a large pool of wealth.

"Look at self-entertainment as an investment. Not as expenses."

It's okay to relax. But for many penniless people, that's all they do.

Netflix doesn't cost just $9.99 per month. It also costs time.

You need to invest time to consume their mindful TV shows. Instead of making movies, they push you towards useless TV shows that take seasons and years of our lives to watch.

Balance self-entertainment with building a bright future. The 80/20 rule works well with this. Build 80%. 20% self-entertainment.

"Discomfort is bad. Rest is good."

Discomfort causes growth.

When you face your fears and achieve small victories, you feel great. We live in a crisis of comfort in modern times. Spend more of your time in uncomfortable situations to get an unfair advantage.

What begins to discomfort turns into comfort. This is how your life improves dramatically without having to hope for luck or miracles from God.

"Buy a beautiful car before you buy a beautiful house"

The car is a piece of metal with four rubber wheels. Do not overcompensate for the importance of the car.

The house comes with the land. The value of the land rises over time because it is rare. But the value of the car drops immediately after driving it away. They are low-value assets and are not at all scarce.

The used Toyota car is greatly overpriced. Or you can just take a bus or take an Uber. Better yet, you can walk or cycle to many places.

"Ignore your physical health. Eat and drink whatever you want"

Building financial wealth requires energy.

What you put into your body determines your energy levels. Eat processed junk food and drink sugar-added water to destroy your energy. Eat more plants and drink more water for high energy.

Business and professions do not die. People just run out of energy.

"Spend more than you make"

It is a simple exercise. If the money coming out of your bank account every month is bigger than what you enter, we have a real problem!

The simplest solution is to reduce the cost of your shelter. Or learn how to earn a little extra money online. Just don't let your expenses continue to rise as does your income (lifestyle creep).

Use excess funds to invest in financial assets that generate more money.

"Understand that the world is just, and as long as you do the right thing, the government and society will save you.

No one saves the bankrupt.

My friend has not been saved after all these years. The only person who can save you is yourself. Life is not fair. The capitalist structures that run the world do not allow for justice. They are unlikely to change.

Society wants to save you but we are very busy with our own problems. Deep down the government wants to save you too. But they can't.

Once you accept that life is unfair (by design), you'll wake up every day and make it a little fairer.

"Never risk under any circumstances"

You might argue that bankruptcy is the result of taking risks. But some of the most successful people in history have gone bankrupt – Abraham Lincoln, Walt Disney, Cindy Lauper, and Elton John.

If you don't take risks you won't find out what works. You will spend your life wondering "what if?"

Penniless people lose all their money because they have crossed the line. They don't care if danger takes away their wealth. Why?

You can always start over as many times as you want. Take regular risks to avoid feeling bankrupt. They will help you survive.