NEWS always talks about RICH PEOPLE ARE GETTING RICHER WHILE POOR PEOPLE ARE GETTING POORER. Most of the blames are given to the government for not doing anything about this.
But it’s people who should BLAME THEMSELVES instead.
READ MY STORY HOW I WENT FROM MAKING $100 PER MONTH TO BECOME MILLIONAIRE
It’s our own HABITS of how we use or abuse money, which decides whether we turn up WEALTHY OR POOR.
1. BUYING LIABILITIES
PEOPLE are having a hard time understanding ASSETS and LIABILITIES. My Bank considers that my car is my asset but it’s not an asset for me. How it can be an asset, if I am paying every month to the bank to pay off the loan and paying for insurance and Maintenance. My car is a liability (unless it’s a cab or UBER which make money from car) for me because I am paying every month instead of making money from it. It’s Asset for the bank because it’s making them money every month. Unfortunately, the same is true for our house, it’s a liability for us and assets for the bank because house is not making any money but we are paying for it in many ways.
YOUR ASSET is your BUSINESS which generates income for you, so STOP buying liabilities and focus on building assets that generate ACTIVE OR PASSIVE INCOME for you.
2. NO FINANCIAL WEALTH-BUILDING KNOWLEDGE
THIS is one of the most important step that people miss in their life to BUILD WEALTH. We did not get any knowledge about SUCCESS, GROWING RICH, INVESTING and WEALTH BUILDING in our schools or universities.
Invest In Yourself
This is something we have to learn to move forward towards growth. We got so much content out there in BOOKS, YouTube or BLOGS that there is no way we can find any reason to not learn. You can just start with READING 10 PAGES A DAY while traveling or waiting or just before going to bed, instead of fooling around on your phones. You may not get the concept of the book by reading it for the first time but go over again and it will definitely come along. This will be the best gift you can ever give to yourself.
READING THESE 5 BOOKS CAN CHANGE YOUR LIFE
3. OVERSPENDING ON ITEMS NOT REQUIRED
Our environment around us is build to make us spend more money for the items we don’t even need. You name it, it’s everywhere on Social Media, TV, Ads on the road, Google Ads on our browser, it’s showing us things which we don’t really need but social pressure of not looking as good or not having as good stuff is making us buy more and businesses knows about this human weakness and they use it for their advantage.
This is common for lot of people and they spend to show off or to please other people. They value social approval way too much and keep spending on things that have no value. This is a long list, not just limited to a few listed items like Expensive gifts, Expensive vacations, Expensive weddings, Expensive cars.
People feed to their wants instead of their needs.
4. EATING OUT TOO MUCH
We should be eating out from time to time but it should not the usual way of living. I see people taking morning coffee and lunch from outside every single day which turns up to lot of money over time. These small saving habits can make a big difference over time and same money can be invested to create wealth over time. Besides money, eating from outside daily is bad for the health anyway and we shouldn’t eat outside food more than once per week.
Make your own Lunch
I like the idea of celebrating special days by dining out. But taking out coffee, sandwiches for Lunch or Breakfast will never let you save enough money to grow rich especially during the early years when you just started working.
HOW I DO SMALL THINGS TO STAY HEALTHY AND SAVE MONEY OVER TIME
5. STUDENT DEBT
EDUCATION is used to be very important at some point and it was a sure-shot formula for success, it’s still very important but it has become BUSINESS for colleges and universities to sell education for big reward. Prices of getting a higher education has gone up drastically over the last couple decades that it’s getting difficult to afford the studies.
We have lot more people going for higher education but getting better education doesn’t mean HIGHER SUCCESS anymore.
Imagine getting out of university with $50-100 k in STUDENT LOAN and I am sure that starting a business won’t be an option anymore because you have to take care of your loans and can’t afford another loan to start a business. You will have to delay starting business, house or making any other type of investment.
In short, you will be losing time and big potential for growth. TIME IS MONEY and having big student loan doesn’t help.
6. NOT INVESTING
MY PARENTS never made any kind of INVESTMENTS, they worked very hard for their kids education though and we end up very good financially but my parents turned out to be broke all the time because they never learnt to invest money and they are never going to have money which is the hard truth. My parents did the best thing ever for us to get us well educated but I wish that they should have learnt the importance of investments to self-sufficient. I am still working with them to make them understand as it’s never too late to start it.
Money Makes Money
MONEY MAKES MONEY and it’s impossible to GROW RICH if you never INVESTING. It used to be tough to invest when my parents were young because of lack of knowledge and technology in those days. It has become very easy to invest these days and there is no excuse to not invest. We got helpful tools like Google, YouTube and Pinterest to learn anything from STOCKS to REAL ESTATE.
7. NOT HAVING BIG GOALS
WHAT’s IN THE LIFE WITHOUT GOALS?
SUCCESS is interlinked with GOALS very closely, whether its small or big. It is very important to understand how to use GOALS to GROW WEALTH. NOT HAVING BIG GOALS can have major impact on your financial status. BIG GOALS bring BIG RESULTS, average thinking and average goals bring AVERAGE RESULTS.
People with Small Goals get Average Results
Most of the people just want a decent job, a small house to raise a family and a decent retirement, nothing is wrong with that but that’s what you will achieve because you just aim for that. You should aim big and your mind will find a way to ACHIEVE that.
8. NOT STARTING EARLY
HAVE you heard about the 8th wonder of the world? IT’s COMPOUNDING.
NOT STARTING EARLY is the only big mistake I have ever done in my life. WEALTH needs time to grow and it’s only possible if you start early. Most of time people tend to be focused on dating, wedding, fashion, kids in their 20’s and 30’s instead of thinking to START INVESTING. People think they have lot of time to do INVESTMENTS in their future. But they find out that it’s too late around 40’s.
Start Early, Start Small
Starting Early with Small money invested over long period of time can be a big wealth builder. There is no way to catch-up once TIME IS LOST.
9. WRONG PRIORITIES
”WE REAP WHAT WE SOW”, we will get back exactly what we work on, If you are putting more efforts, you will be getting more better results and putting your efforts at wrong place doesn’t help.
It’s impossible to get wealthy if you have never decided to do that, you will never take any steps to CREATE WEALTH if you have never given any thoughts to it. You always need to sort your priorities out and I would recommend to do that by starting to invest as early as possible.
10 CREDIT CARD DEBT
There is nothing worse than having a CREDIT CARD DEBIT. Did you ever notice the interest rates on credit cards for carrying a balance.
Credit Card Debit is one of those things that you will always find difficult to get out of it. You are losing time and money to invest because it has so high potential to grow big.
Why banks getting Richer?
Why do you think these financial institutions are getting rich and bigger every year? It’s Because you are giving them our hard-earned money. You could have been invested that money for yourself which could have been made you MILLIONAIRE.
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AND PLEASE, leave your feedback in comments section below.
Ravi, another great set of relevant comments with sensible advice! I’m rethinking a few things based on your comments!
Thanks so much Steve for your appreciation and support 👍👍🙏🙏
Great list but I’ll add one more reason to the list:
Falling in love and marrying and then divorcing.
That’s very good one, I was thinking to add Divorce to the list 🙂
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