ARTICLES > Twenty Reasons You're Not Rich.
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Twenty Reasons You're Not Rich.
1. You care what your neighbours think People often go into debt because they want what other people have. The reality is, if you compete against others to have the best of everything, you’re always going to lose because there will always be people with more than you. Don’t worry about others – be happy with what you’ve got. 2. You’re impatient Credit cards could be called the financial curse of our age. With credit cards we have the opportunity to buy things now and save for them later. If we saved now and bought later we’d buy less things and pay less interest. 3. You have bad spending habits We all have things that we indulge in which we could, without affecting our happiness, let go of and save money. For those who have done the FORTIfi enspire Course, it’s all about plugging those spending leaks. 4. You have no goals Remember the old saying – if you aim at nothing, you're bound to hit it. This is the basis of what FORTIfi Ltd is all about; we’re about encouraging New Zealanders to be proactive with their finances because financial security does not happen by accident. You need to set goals, develop a strategy to achieve those goals, and consistently work towards them. 5. You haven’t prepared No one expects a crisis or disaster and sometimes insurance can seem like a waste of money. But, many people have experienced financial ruin because they are inadequately insured. You should always have general insurance (Home and contents and at least third party vehicle insurance), an emergency fund to help you through possible tough times and, for the sake of your dependents life-related insurance (at least disability, and life). 6. You try to make a quick buck There’s no easy way to get rich. Even FORTIfi's MortgagePlan is not a magic formula. While it’s not difficult, it does require you to give thought to your finances. 7. You rely on others to take care of your money No one will care about your money more than you will. If you're seeking to invest your money in some way, get professional advice. Even if you haven’t got a lot of cash, think about and research ways you might be able to use your finances more effectively. 8. You invest in things you don’t understand Following on from number 7, your financial decisions should be based on an investigation of the benefits and risks. There will always be things that are considered the latest fad or hot tip. Most of these are simply fads and do not result in a lasting financial benefit. 9. You’re financially afraid Being overly conservative with your money is another way of throwing it away. If you keep your money in a cheque or low-interest savings' account, you may be losing your buying power after inflation is considered. At least consider longer term, high-interest deposits or consult a trusted financial advisor to discover that you should be doing with your money. 10. You ignore your finances  Many people use the excuse of not fully understanding finance to avoid doing anything about it. Ignoring your finances won’t make them go away. If you have financial goals, or if there are things in your financial life that you’re not happy about, you need to tackle them head on and come up with a strategy get things under control. A great way to gain control of your finances is to join the FORTIfi Network.11. You care what your car looks like Many people find prestige in their image, and cars are one of the main temptations. The flasher the car, the more it costs to purchase and to insure and to replace. Don’t be tempted to spoil your financial future for the sake of appearance. 12. You feel entitlement Part of the basis of FORTIfi’s financial solutions is that we help you organise your finances without disrupting your lifestyle. There is a limit, however. We are all guilty at times of saying things like, “I deserve to buy this because I’ve had a tough week.” Or, I work hard and so I should be able to spend this.” That’s okay at times but too much of this thinking can lead to overspending and wasting money. 13. You lack diversification Many of us don’t have a lot of money to invest, but if we do have some, sound investment advice says diversify. If you spread your money around chances are that one form of investment will be doing well even if others are not. The key is to find a trusted financial consultant who can advise you. 14. You started too late What most of us want is money for retirement. It’s pointless developing our retirement strategy when we’re 64. Think about it early and reap the benefit of the power of compound interest. 15. You don’t do what you enjoy There is a balance required here. If we only did what we really enjoy I would be writing this from a beach on some sunny Pacific Island. We don’t always get exactly what we want. However, there is no doubt, we work better and have a greater chance of success if we work at a job we enjoy and are passionate about. 16. You don’t like to learn Similar to number 10, if you want to be in control of your finances you need to learn at least the basics. Even the information within articles such as those on the FORTIfi Resource Centre can give you the background information that you need to improve your financial security. 17. You buy things you don’t use Before you purchase anything, STOP and ask the question, “Do I really need this? Will I use this? It may even pay to wait for a day or two after deciding to purchase something before actually heading out to get it. You might be surprised how many things you decide not to get. 18. You don’t understand value Value and cost are two different things. The cost is what you pay for an item. Whether it is good value or not is a different matter. For instance, I’ve found overly cheap shoes are not good value. I spend a little more and get far better wear out of them.  19. Your house is too bigIt surprised me to read this on Jeffrey Strain’s list but I think he’s right. People will often purchase a large house because they think of it as an investment. But your house is both an investment and a liability – it costs you money. In general terms, a bigger house will cost more to purchase, and to run, and to maintain. 20. You fail to take advantage of opportunities This is related to number 18 – whether it is an investment, or a new home or a new car, we need to recognise value when we see it and take advantage of it. In the same way, if we see a new business or idea, don’t just sit there, go for it! Related article - Ten Lies that can put you into Credit Card Debt - and Keep you There! Click here to read. |
Jeffrey Strain is an author of financial books in which he says his aim is to do more than just get out of debt – he wants to create some personal wealth and live comfortably. Some time ago he produced a list of Ten Reasons You Aren’t Rich and then, recently, added to these with Another Ten Reasons You Aren’t Rich.