Contrary to popular belief, everyone has the same opportunity to acquire wealth. Is wealth in the cards for you? To help you evaluate, we’ve rounded up red flags you might want to watch out for. While no one can predict the future, the following choices most likely won’t accelerate your path to riches.
1) You put too much emphasis on saving — and not enough on earning
Saving is crucial to building wealth, but you don’t want to focus so much on saving that you start neglecting earning, which is what rich people focus on.
“The masses are so focused on clipping coupons and living frugally they miss major opportunities.
There’s no need to abandon practical saving strategies. However, if you want to start thinking like the rich, “stop worrying about running out of money and focus on how to make more.
Some experts say that “it’s not about how much money you make, it’s about how much you keep,” but this shouldn’t be an excuse to disregard earning completely. To keep money, you have to earn it in the first place. A common thread among millionaires is that they develop multiple streams of income and have smart savings habits.
2) You haven’t started investing
One of the most effective ways to earn more money over time is to invest it, and the earlier you start, the better.
“On average, millionaires invest 20% of their household income each year. Their wealth isn’t measured by the amount they make each year, but by how they’ve saved and invested over time.
The more you can set aside, the better, but even a little bit can go a long way, thanks to compound interest. An easy way to dip your toe into the investing pool is to start saving for retirement using accounts where your money is invested, like a 401(k) or IRA.
3) You’re content with a steady paycheck
Average people choose to get paid based on time on a steady salary or hourly rate while rich people choose to get paid based on results and are typically self-employed.
It’s not that there aren’t world-class performers who punch a time clock for a paycheck, but for most this is the slowest path to prosperity, promoted as the safest. The great ones know self-employment is the fastest road to wealth.
While the world-class continue starting businesses and building fortunes, “the masses almost guarantee themselves a life of financial mediocrity by staying in a job with a modest salary and yearly pay raises .
4) You buy things you can’t afford
If you live above your means, you won’t get rich.
Even if you start earning more or get a hefty raise, don’t use that as justification to give yourself a lifestyle raise.
5) You’re pursuing someone else’s dreams not your own
If you want to be successful, you have to love what you do that means determining and pursuing your passion.
Too many people make the mistake of chasing someone else’s dream such as their parents .
When you pursue someone else’s dreams or goals, you may eventually become unhappy with your chosen profession.Your performance and compensation will reflect it. You will eke out a living, struggling financially. You simply won’t have the passion that is necessary for success to happen.”
6) You rarely step outside of your comfort zone
If you want to build wealth, be successful, or get ahead in life, you’re going to have to get used to uncertainty or discomfort. Rich people, in particular, find comfort in uncertainty.
Physical, psychological, and emotional comfort is the primary goal of the middle class mindset. “World class thinkers learn early on that becoming a millionaire isn’t easy and the need for comfort can be devastating. They learn to be comfortable while operating in a state of ongoing uncertainty.”