Wednesday, 22 April 2015

Must Read: 10 reasons why you are still poor

1. You buy everything your neighbors and friends have

Trying to impress your neighbors and friends by buying all the stuff they have plus everything they would like to have? Don’t do it – spending money on things that you really have no need for is the number 1 reason why people have less money than they want to. Having a lot of things and having a lot of money are 2 things that contradict each other – you need to give money away in order to get stuff.
True wealth and money comes to those who are willing to wait – the 1000 dollars you choose not to spend on a new plasma TV with a giant screen can turn into 100 000 dollars in 20 years. Think of how much TV-s this money would get you then (as opposed to how much you would get when selling your TV after 20 years).

2. You are impatient

You want to have everything now and are not willing to wait in order to buy it later. The concept of saving money for something you want to buy is not known to you – instead you use one of your many credit cards.
You probably haven’t heard that using a credit card makes other people rich (owners of credit companies) and keeps you poor.

3. You have bad habits

You smoke, drink and watch TV all day long. You spend money on the things that will never bring you anything back. In the long run you need to spend even more money on health in order to get back to your best drinking shape!
A bad and devastating habit can also be negative thinking. Research has shown that people who are more willing to keep their mind open and positive to new ideas are wealthier than pessimists.

4. Your goals suck

You don’t have any goals and even if you have one – its awful.
Just about every 10-year-old wants to be rich and famous but only a few will actually get there.
You need a goal that says what you want to achieve, how you are going to achieve it and by what time will it be achieved.
After coming up with a goal you will also need to make a plan on how to achieve it. You must be able to measure your progress at any point to get feedback on how you are doing.

5. You don’t have an emergency fund

You spend everything you make and don’t keep an emergency fund for unexpected things. If you are not covered by insurance an accident can set you back tens of thousands of dollars.
Without an emergency fund you would need to borrow to come up with the money. This also means that you will have to pay interest – not having an emergency fund can end up loosing you a lot of money.

6. You want too much too fast

You want to get a lot of money fast and with little or no effort. This makes you go along with tens of get rich quick schemes that always end up losing money.  Your decisions are affected by the need to get a lot of money fast, which makes you take unnecessary and stupid risks.
You need to remember that there is no such thing as easy money.

7. You hope that other people will take care of your money

You give professional money managers free will to take care of your money as they wish. Everyone wants to have more money so they will just end up making a lot of “necessary transactions” – of course you are the one paying the transaction fees.
Take care of your own money – always have the last say in what to invest and what to buy.

8. You invest in what you don’t know

After reading a story about a new high tech invention you decide to invest all your money into this startup company. If it’s high tech and complicated it must be a great invention, right?
Wrong!
Investing your money in what you don’t understand is the fastest way to losing everything. Something that looks like a good idea doesn’t have to be one. Stick to what you know and you will be able to keep yourself from the dumb ideas and go along with the great ones.

9. You are afraid to lose your money

You are so afraid to lose your money that you keep it in an ordinary bank account with a terribly small interest rate. You are afraid to invest your money because you think that the risk of losing everything is too great.
By keeping your money on a savings account, it generates less interest than the inflation. This means that by keeping your money in a safe place you are actually losing it to inflation.

10. You are not interested in money

You think that when you make enough money at work all your money related problems will take care of themselves
Actually the opposite is true – over 90% of people winning a multi million dollar lottery end up with less money just after 5 years of winning.
Getting rich takes effort and planning. If you are not interested in money then chances are that money is not interested in you.

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