1. Overspending
If you
have a ferocious appetite for spending beyond your means, you’re not alone.
According to a survey, of the 52% of people who habitually overspend, many
balance the shortfall by taking from their savings, and 22% rely on credit
cards. Blowing all your money each month is not a realistic pathway to wealth.
Start tracking where your money goes each month, check where you can cut back,
and create a ‘realistic’ budget that allows you to pay your bills and invest in
a retirement account or an emergency fund.
2. Not
Saving Enough
Welcome
to the club! The personal savings percentage in the US is a measly 4.9% of
disposable income. Saving should become a priority if you want to accumulate
wealth. Start with an emergency fund. Once your emergency fund is substantial,
you can redirect small amounts toward other goals like purchasing a home or
paying for college.
3. You
Have Too Much Debt
Certain
debts are a precursor to financial success, like purchasing real estate or
starting a business; however, a high-interest credit card balance is not. Pay
off credit cards with the highest rates first.
4. You
Don’t Have a Plan
Without
a definite, clearly defined plan, becoming rich will seem like an unbelievable
dream. This alone will solidify your excuses for overspending and not saving.
As the saying goes, “Those who fail to plan, plan to fail.” Putting together a
financial plan may seem tedious, but it doesn’t have to be, and you can get
used to it.
5. You Don’t Have an
Emergency Fund
Experts
say you need at least six months of income saved in case of an emergency. Life
is tricky, and not having some type of safety net can turn a comfortable
situation into a disaster
6. You
Started Late
Time is
slipping by. Just like starting an exercise routine, the most difficult part
about saving is getting started. Even if you have debt, a small income, or many
expenses, you can save something, even if it’s only a small amount.
7. You
Complain Rather Than Commit
“I don’t
earn enough money”; “Life is too expensive”; “It’s hopeless, I’ll never get out
of debt.” Have you uttered any of these statements before, or perhaps all of
them? Old habits die hard; however, as long as you do nothing to change,
nothing will change. Stop complaining and making excuses. Instead, take
responsibility for your non-productive habits and concentrate on how to change
them – and then do it!
8. You
Live for Today, and Forget About Tomorrow
It’s no
fun getting serious and thinking about retirement and all that stuff.
Nonetheless, eventually it has to be done. The problem is that impulsive and
unregulated spending leads to debt… period! Do yourself a big favor: Get rid of
the ‘buy now, worry later’ attitude, and switch to a ‘save now, get rich later’
way of thinking.
9. Putting All Your Eggs
in One Basket
You
might get lucky by wagering all your money on one type of investment. Just like
you might get lucky winning the lottery. But that’s not a strategy to live by,
or for getting rich. Putting all your money in one place is not advised because
it puts you at too much risk. Your investment portfolio should include multiple
investments with varied levels of risk and ROI potential and liquidity.
10. You
Just Don’t Get It!
You may
be one of those people who believe that somehow something will come along and
save you, so why bother with saving or trying to get out of debt? Maybe you
will get lucky and land a fantastic job, receive a big pay raise, inherit
money, hit the lottery, or whatever! But ‘whatever’ won’t cut it if you really
want to become rich. Yes, life is uncertain. No one knows what will, or will
not, actually happen; therefore, why not focus on what you can control today?
Get it together now and save yourself, in case someone or something else won’t.
One
thing you can be sure of: You are already rich. Think about it. If someone came
to you and offered you a million dollars for your arm, would you give it up?
Why not, you have two; you can surely spare one of them! Of course the answer
would be no! Being rich is more than physical ownership; it’s a state of
happiness and well-being, while wishing the same for others. So while you are
working on getting rich materially, remember to be happy along the way!
