1.
Overspending
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. Continue after the cut.
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. Continue after the cut.
2. Not
Saving Enough
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.
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
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.
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
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.
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
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.
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
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.
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
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!
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
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.
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
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.
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!
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 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!
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!
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