10 Reasons You Aren’t Rich

10 reasons you aren’t rich(Link)

1. You care what your neighbors think. It’s not a
   competition. Who cares if your best friend just bought a BMW? What does
   it matter that your sister dresses her kids in designer clothes? You
   know what’s best. Live below your means.
2. You aren’t patient. “Until the era of credit
   cards, it was difficult to spend more than you had. That is not the
   case today.” We’ve also come to love the dream of quick
   riches. But, as the name of this site implies, if you have patience,
   you can obtain wealth.
3. You have bad habits. Strain notes that vices —
   smoking, gambling, drinking — have more than just immediate
   financial costs. There are long-term costs, as well.
4. You have no goals. I’ve written extensively about goals lately. They’re important. Without financial goals, you’re traveling the road of life without a map.
5. You haven’t prepared. An emergency fund is your own private insurance against life’s hard knocks.
6. You try to make a quick buck. “Get rich quick”
   thinking manifests itself in all sorts of ways. Every time you buy a
   lottery ticket, every time you try to time a stock, every time you read
   the latest fad book about getting rich in real estate or precious
   metals, you’re trying to take a shortcut that doesn’t exist.
7. You rely on others to take care of your money. Strain notes
   that “most people want to make money themselves, and this is
   their primary objective when they tell you how to invest your
   money.” His advice is to educate yourself so that you can make
   your own financial decisions.
8. You invest in things you don’t understand. Financial
   literacy is important (and I plan to push it in April). If you
   don’t understand how an investment works, you can’t
   possibly make smart decisions about it. Even an hour or two spent
   researching can make a huge difference.
9. You’re financially afraid. A savings account is not an investment. To earn a decent rate of return, you must be willing to accept some risk.
10. You ignore your finances. Some people are so overwhelmed by
    their financial situation that they just ignore it. But ignoring bills
    doesn’t make them go away. Take charge of your money. Make it
    fun. (Or at least interesting.) Ignoring your finances only makes them
    worse.

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~ by jackzepplin on March 28, 2007.