Friday, March 23, 2007

10 Reasons You Aren't a millionaire

I am guessing that if you are reading this post, you are not rich. Most people think they are not rich because they don’t make enough money, but in reality, it is our habits and how you treat money.


Thestreet.com’s Jeffrey Strain lists out 10 reasons that hold people back in their quest to becoming financially independent.


1. You Care What Your Neighbors Think: If you're competing
against them and their material possessions, you're wasting your hard-earned
money on toys to impress them instead of building your wealth.


2. You Aren't Patient: Until the era of credit cards, it was
difficult to spend more than you had. …


3. You Have Bad Habits: Whether it's smoking, drinking,
gambling or some other bad habit, the habit is using up a lot of money that
could go toward building wealth. …


4. You Have No Goals: It's difficult to build wealth if you
haven't taken the time to know what you want. …


5. You Haven't Prepared: Bad things happen to the best of
people from time to time, and if you haven't prepared for such a thing to happen
to you through insurance, any wealth that you might have built can be gone in an
instant.


6. You Try to Make a Quick Buck: For the vast majority of
us, wealth doesn't come instantly. You may believe that people winning the
lottery are a dime a dozen, but the truth is you're far more likely to get
struck by lightning than win the lottery. …


7. You Rely on Others to Take Care of Your Money: You
believe that others have more knowledge about money matters, and you rely
exclusively on their judgment when deciding where you should invest your money.


8. You Invest in Things You Don't Understand: Your hear that
Bob has made a lot of money doing it, and you want to get in on the gravy train.
If Bob really did make money, he did so because he understood how the investment
worked. …


9. You're Financially Afraid: You are so scared of risk that
you keep all your money in a savings account that is actually losing money when
inflation is put into the equation, yet you refuse to move it to a place where
higher rates of return are possible because you're afraid that you will lose
money.


10. You Ignore Your Finances: You take the attitude that if
you make enough, the finances will take care of themselves. If you currently
have debt, it will somehow resolve itself in the future. Unfortunately, it takes
planning to become wealthy. It doesn't magically happen to the vast majority of
people.



More at TheStreet.com.


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