Most of the successful entrepreneurs like Richard Branson started with nothing and achieved more than many people could ever imagine. If he can do it, so can you! But before even trying to become wealthy, there are some fairly obvious reasons why most people fail to achieve wealth early in their lives…
Why people fail to become rich?
- It is common for everyone to waste a lot of time on things that aren’t going to make them money. In the process, they miss out on a wide range of opportunities to make money as well as a substantial amount of time away from building anything meaningful.
- In addition, most people waste a lot of money on possessions that aren’t going to add any real value to their lives. They buy things for the sake of “keeping up with the Joneses,” and not because they have a true need for these things. They know that these things won’t bring them any wealth or happiness, but they still get seduced into buying these items because it’s a trend or a status symbol.
- The other thing that most people fail to do is ask themselves the right questions about their own financial situation. They don’t really know how much money is enough for them, and they don’t know how to get there from where they are now.
- On top of all of these, most people don’t know how to save money properly. They end up with credit card debt that is harder and harder to pay off.
But before quitting your job to become rich, there are three more reasons why you might not succeed in making it big:
- Most people won’t take the time to learn more about the business they are really interested in. They think they already know it all, so they go straight into putting their hard-earned cash into it without thinking about the long term. As a result, 9 out of 10 times, they find themselves in bankruptcy or very close to it after a few years because they lack actual experience running their own business.
- Most people think that their current situation is enough. They are unhappy with their current job or lack of prospects, but they don’t think it’s the right time to go out on their own. Finally, they have a bit of money saved up, so they decide to give it a try. But because of the lack of experience in running their own business, they fail miserably in this venture and spend all their hard-earned cash before they learn how to make more money.
- Last but not least, most people have no idea where true wealth lies for them! If you haven’t gone through this process yet, take my advice and ask yourself what you really want for your life someday. What is your biggest motivator to be super successful? And, what kind of lifestyle and spending habits do you want to have in the long run?
What not to do with your money? (To become Rich)
Make sure that you always have more than enough money. If you don’t, then you need to go back to the basics and find out why that is so.
- You shouldn’t spend your money on items that won’t enhance your lifestyle. Money isn’t everything, so make sure to spend your time wisely so that your money is well spent!
- Don’t use credit cards or loans. If you really need or want something, you should be able to pay for it in cash. Otherwise, you will get into debt again and probably never get out of it.
- Don’t save money in your bank account. Instead, put your money into assets that will bring more profit to you over time. Do this by buying stocks (for example). You don’t need to be a stockbroker or super rich to do that!
- Do invest in yourself all the time. Investing in oneself is a good idea if done in moderation. Yes, you should spend time and money on yourself, but you should also invest in yourself as well.
- Don’t spend so much on rent or mortgage payments. This is not really something that should concern you.
- Don’t panic. Don’t fall into debt. Keep a clear head and a steady heart throughout all of your business endeavors. If you learn from this, then you will be a much better entrepreneur in the long run.
- Don’t take on more debt than you can handle at any one time. This is when people spend all their money buying things they don’t even need so they can pay off credit card debt from last month when they didn’t have enough money in the bank to cover it.
- Most people buy their cars so expensive that it’s almost impossible for them to keep up with the payments. And if they don’t do this, they will probably get their cars repossessed.
The majority of people spend so much on expensive clothes that they can’t pay for them in cash. Obviously, debt due to credit cards is the only solution for this problem.
- A lot of people spend so much on food that they can no longer keep up with the payments in order to pay all their bills. Again, credit cards always come in handy in this case.
- You shouldn’t borrow money from friends and family in order to break even with your debts and credit card payments and things like that. This is when people become too close to bankruptcy! And if they don’t do this, they will probably borrow even more money from friends and family in order to make their payments or pay off their credit cards or do everything else at the same time (instead of cutting down on expenses).
What you should do instead to get rich?
- Spend some money on the right things and at the right time. This is especially important when you’re starting off on your own.
- Spend just enough money to get by and to pay rent for a couple of months until you figure out what your main goal or your main business endeavor will be. You don’t have to eat as much as you can but make sure that you spend as little as possible on unnecessary items which will only cost you more cash in the long run.
- Put as much as you can into stocks and other assets that will bring you more profit over time.
- This isn’t the typical way to get rich, but start a business doing what you love and try to make it big. Not everyone can do this, but if you really want to make it big and retire young, then this is what you should be doing!
- Work hard and save your money. This is the #1 thing that anyone who wants to get rich should be doing.
- Try to learn as much as you can about your way to success and invest the rest of your money into things that you know you will know more about in the long run.
- Before starting your investment, you should create a plan of what you will do before you get started on your idea. This plan doesn’t have to be elaborate, but at least be a simple outline of what you will do. And make sure you make public all of your business decisions, purchases, etc.
I’m sure if you ask yourself these questions and think about them carefully, you will come up with some amazing answers! Now all you have to do is work towards those goals and become a wealthy person. Of course, you will need to save some money in the meantime, but this will happen automatically if you’re really determined.
Try the things I’ve just mentioned above if you want to get rich. If you don’t know yet what it is, it might be too early to think about that kind of stuff (sure…there are other things in life besides getting rich). But why don’t we take it slow? Just start with “getting rich” and go through the slow way. It’s the best way!