Ever see that person driving around in the nice luxury car and wonder why you don’t have one like that? Or you can’t understand why your home isn’t as nice as the one across town? Maybe you can’t figure out how you have so many bills to pay and so little to show for it in the bank? Face it, you aren’t wealthy; at least not now. If you aren’t careful and watch out for these five reasons then you won’t be wealthy tomorrow either.
1. You spend more than you earn. It’s quite simple; if your outflow of money is more than your inflow then you’re in debt. That’s what’s happening when you spend more than you earn. Let’s put it another way, if you make $2000 and you’ve spent $3000 then you’re in trouble, plain and simple. This keeps you from being wealthy. How are you going to save up anything if your debt keeps growing?
2. When you spend you tend to put it on a credit card and don’t pay it off. When you get the urge to splurge you go for the quick money and put your charges on a credit card. That’s all well and good until the bill comes. Since you don’t have enough to pay the bill off entirely, you pay less than the full amount. The credit card company now gets to charge you some nice interest on your purchase, which will compound as the months go by. Your purchase gets more expensive every month you don’t pay off your credit card. How could you expect wealth when your credit card is sucking you dry?
3. You don’t save. You have virtually nothing put away in a savings account. No emergency fund. Nothing. When you have money it’s either spent or used to pay bills. Saving is an afterthought that’s put off until “later” when you have extra money except, but “later” never comes.
4. You don’t budget. You seem to think you make enough money to cover your lifestyle and your bills, but every month it doesn’t seem to work out. You’re not sure why this is or where all of your money goes. You basically take your expenses as they come and have no clear idea how much you spend monthly or what your expenses clearly are. The idea of a budget is foreign to you. How can you know where your money is going if you don’t keep track?!?
5. You covet stuff. Your friends eye you jealously as you tout the latest cell phone or show them your latest gaming system. You try to get all the latest gadgets. You love buying stuff! But stuff doesn’t come free. It costs and usually costs a premium as you are the first to get a new item (when they are most expensive). Your love of stuff drags you down in the long run as it cuts your ability to save and adds to your credit card debt.
If these don’t apply to you then you may very well be on your way to living a wealthy lifestyle. B,ut if something on this list strikes a nerve with you, then you have to ask yourself why? Does it hit too close to home? Does it resemble something in you? Look, a good many of us could relate to these five items at some point in our lives. I’m pretty sure I’ve hit all five here! But I realized what I was doing and that if I kept it up I would have no hope of ever building wealth. There’s always time to make a change and there’s no reason we all can’t be on our way to build wealth!
Published or updated March 22, 2012.