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Have you ever wondered why you are not rich yet? You might have big ambitions or work at a well-paying job, yet nothing seems to grow. You wouldn’t be the first one to feel stumped about the money game. Many people assume that getting rich is easy, especially if you have a good career.
Here’s the harsh reality: income alone isn’t what makes you rich. Sure, getting five or six-figure salaries would benefit you greatly. However, people who become wealthy don’t always have the best-paying jobs. Some even become millionaires without relying on a lottery ticket or a Bitcoin trade. The truth is that there are multiple reasons why you are not rich. Here are ten of them and how they affect your money mindset.
What are the reasons that you’re not rich?
1. You try to keep up with the trends.
If you look online and check the latest fashion trends or tech purchases, do you feel like you should buy them too? A lot of people feel like they have to “keep up with the Joneses” by matching the newest fad in town. Years ago, people were clamoring for the chance to buy the first iPhone, even if they already have a serviceable flip phone. Nowadays, there are people desperate for the latest iPhone model, even if they got one last year. So, if you’re someone who tries to stay in the trend, you’re risking more cash than you need to.
2. You get advice from the wrong kind of people.
Imagine that you’re planning on getting married or you’re working out relationship problems with your partner. Suddenly, you get a visit from a friend whose gone through four divorces and multiple breakups. They try to give you words of wisdom about how to deal with your relationship. Are you going to listen? Of course not!
One reason why you are not rich is that you get financial advice from people who aren’t good with money. You might have friends who obsess about buying the first new ring they see or the latest Gucci shirt. You may speak to a relative who enjoys gambling more than saving. Sometimes, you’ll have to think twice about who you’re asking before you get their advice.
3. You’re afraid of being left out.
Similar to the trends issue, you might suffer from the fear of missing out (FOMO). This is when a person is so afraid of not being part of a trend or a movement that they join. For example, a lot of people feel insecure about their mobile phones because their friends all have iPhones and iPads. This also applies to business ventures, like those who invest in Bitcoin or NFTs because a billionaire did so. Remember that not all trends are timeless and if you focus more on others, you risk forgetting what matters to you first.
4. You’re financially out of sync with your partner.
Speaking of others, do you have a partner who doesn’t share your plans for the future? Some divorces and separations happen because a couple cannot agree on their financial goals. Imagine a working mom or a busy dad finding out that their spouse is spending all their money on new clothes or hobbies. It’s infuriating if you use your time building a sizable budget only for your partner to waste it all away.
In addition, some couples simply can’t align their visions. Someone might be more focused on paying bills or affording vacations while another wants to settle down and build a bigger home. You might not realize it, but separate money goals could be why you are not rich. If you and your partner keep disagreeing about your financial issues, it might be time to step away.
5. You keep falling for the “discount trap”.
Have you ever seen a discount promo and felt like you had to buy that product right away? You might hear that a new car is going at half price or a new phone is 30% off. Now, while there’s no issue in buying what you need, you should not always trust a discount.
For example, if a shirt costs $5000 but goes on a special sale for $3500, you might think it’s a steal. Well, it could be but you’d still be spending $3500 on a shirt. Sometimes, even though a discount sounds nice, it’s not necessary to your life. Is it worth getting a laptop at half price if your current one works fine? You might need to re-evaluate your priorities first.
6. You don’t have emergency funds.
In many of my videos and articles, I emphasize the importance of emergency funds. It might sound like a broken record by now, but there are a lot of people who don’t have this backup budget. What’s worse is that some of them even think it’s okay. They might scoff at the chances of a car accident or a hospital visit or a house fire. Unfortunately, that mentality breaks down when something unexpected does happen.
Now, while I’m not saying that those emergencies will happen, I still think it pays better to be careful. No one knows what will happen tomorrow. Very few people ever foresaw COVID as a problem, let alone as the pandemic that it became. With so much uncertainty about the future, you must take the right steps to cover any potential costs. Otherwise, you’ll only have yourself to blame when asking why you are not rich.
7. You don’t enroll in an automated savings plan.
Sometimes, the arrival of your monthly salary can give you overconfidence. I know of people who’ve gone out and bought lots of things or gifts because their income arrived. One reason why you are not rich could be a paycheck-to-paycheck lifestyle. If you earn a million dollars but you spend it all afterward, then you can’t say you’re rich.
why you are not rich calculate
Take initiative by having an automated savings plan to directly transfer a portion of your money away. You can get a percentage of your monthly payments and send it to a locked account. That way, you can slowly build your finances over time and you won’t feel tempted to use up that percentage.
8. You don’t dedicate enough time to your investments.
Some of you might be small-time investors or part-time stock traders. You may have already bought several shares from several companies. Fast forward to a year later, and they don’t seem to be paying off.
One thing that you might be forgetting is that investments don’t just grow like plants. You have to dedicate time and effort to making them grow. Having a large amount in your savings won’t matter if you don’t spend it wisely. Why not use what you can add more shares or study economics? The more you dedicate time and effort to each investment, the more you can maximize its returns.
9. You take too long to execute a plan.
Do you have a financial plan set out? You probably carry around a notebook or planner that outlines your year. For example, you wrote down how much money you save every month and where to use it. It sounds like a clever and useful plan.
However, one reason why you are not rich could be your waiting game. You might think that your plan has to go flawlessly. So, instead of taking action, you wait and wait until you feel there are enough funds to make it work. Sometimes, investment is all about taking chances. I’ve made several in my life, some of which worked and some of which failed. However, it’s better to learn from mistakes and keep trying than wait for an ideal scenario that may never come.
10. You think there’s only one path to making money.
Do you think there’s a job out there that’ll make you rich? Do you imagine that being a stockbroker or entrepreneur will earn you lots of cash? Believe it or not, this mentality might be why you are not rich yet. Many self-proclaimed gurus claim that there is one certified way to get financially secure. It could be a job or an investment or a credit card plan.
The truth is that there is no certain way to make money. If being an entrepreneur can lead to millions of dollars, should everyone do it? No! There’s still room for manufacturers and sellers and drivers and other types of jobs. Stock trade might be good but it’s not the only way to make money. I’ve met bus drivers and janitors who may not look like millionaires, but who’ve saved enough money and dedicated lots of time to grow their money. Before you go and think you have the answers, reflect on what you do know.
What habits can help you get rich?
Millionaires don’t settle into one niche and stay there. They don’t get to the top and then lean on their success or their current methods. I used to think that I could it all myself. After suffering heavy financial losses, though, I realized that no man is an island. I had to learn how to delegate work and make myself a team player, not a lone wolf.
Learning proactively
If you look online and check the latest fashion trends or tech purchases, do you feel like you should buy them too? A lot of people feel like they have to “keep up with the Joneses” by matching the newest fad in town. Years ago, people were clamoring for the chance to buy the first iPhone, even if they already have a serviceable flip phone. Nowadays, there are people desperate for the latest iPhone model, even if they got one last year. So, if you’re someone who tries to stay in the trend, you’re risking more cash than you need to.
The reason why you are not rich yet could be a lack of initiative. You can’t assume that you know everything. There is always something new to learn, whether it’s a skill or a perspective. You could learn more about another language or cooking. If you take time to learn proactively, you can arm yourself with lots of tricks and skills in the future.
Building a strong, reliable network
Having a strong network of friends and mentors is a key part of success. You see, people don’t realize that their connections can change and upgrade your perspective. Getting advice from people more successful than you means getting knowledge on how they thrive. Learning important skills or viewpoints about money and business from friends can help you evaluate things better.
Instead of wondering why you are not rich, take a chance and start reaching out to other people. Pick their brains on how they made money and how they saved it. See what investments they like or dislike and why. The more you reach out and make friends, the more you can learn different answers and different reasons.
Taking calculated risks
As I said before, I’ve made a lot of successful money moves in my life. I’ve also failed a lot along the way. However, the important thing I learned is to always take a chance and see what is worth the effort. In that same vein, make sure to look into the risks of whatever plan or idea you have.
For example, you might be thinking about getting health insurance for yourself. You might complain that it costs a lot of money but consider the outcomes first. If you don’t get hurt, you’ve at least covered any potential dangers to yourself. If you do get hurt, you can cover the bill and keep your loved ones financially safe.
A calculated risk can seem expensive but it can also be the right move. And if it’s wrong, always use it as a springboard to get the right answer.
Patiently waiting for long-term payoffs
Lastly, make patience a hobby in your life. A lot of people want instant satisfaction, whether it’s a snack or a nice gadget. Sometimes, enjoying yourself now is what costs you a good and stable future. Don’t spend now and complain about why you aren’t rich. Instead, look at what you’re spending and see where you can cut things off. It might take a while for these changes to affect your finances, but it’ll all be worth it in the end. Remember, Rome wasn’t built in a day.
