Some people blame not making enough money as the main source of their being poor.
Granted, it takes money to make money.
However, not making enough money is not the culprit. It’s what you do with your money, your beliefs about it, etc.. that are holding you back.
And, if you believe that money is “the root of all evil,” then guess what?
You will never be rich.
The reverse is true: if you value money and have a positive attitude towards it, you will have no choice but to make more of it.
So why are you not rich yet?
Here are some reasons why you’re not rich yet:
- 5 Money Habits to Give Up If You Want to Be Rich
- How to Build Wealth and Get Rich
- 7 Habits of the Rich that Make them Wealthy
- 5 Passive Income Streams that Will Make You Rich
1. You don’t save any money
Some people don’t save money because either they’re unwilling to limit their spending or they just don’t know how.
And if they do, they’re only saving money for a specific thing like a vacation or holiday.
Don’t get me wrong, it’s better to save for these things than to use a credit card that may leave you in debt. However, saving for a holiday will not make you rich.
What will make you rich is saving money to make it work for you.
You make money work for you by either investing in stocks or in real estate, or use it to start your own business.
Read More: 20 Smart Ways to Save Money
2. You spend money like crazy
Regardless of much money you make a year, if you overspend, you will always be poor.
If you’re spending more money than you earn, the consequence is always more debt. And with more debt, you can find yourself in a vicious bad debt cycle.
So before you start splurging, ask yourself: do I really want that?
3. You don’t take any risks
You will never find any rich people who did not take any financial risks in their lives.
Granted some people became rich from winning the lottery or inheriting their wealth. But the self-made millionaires or billionaires took great risks.
The truth is that without any degree of risk, then there is no growth and therefore there is no success.
The path to becoming rich and successful is riddled with setbacks. If you fear that you will fail and do not take any real calculated risks in your life, then you will always be poor.
4. You don’t have an emergency fund
An emergency fund is there to help cover at least 6 months of your expenses in case of an emergency.
Some examples of emergencies are loss of employment, major car repair, sudden illness, etc..
If you don’t have an emergency fund, and these emergencies do and will happen, you will have to rely on credit cards or loans to pay for them. And that can get you into more debt.
5. You always say “yes” to people
We all know, at least we have heard of, that time is money.
If you’re always available to friends, family members, etc, you’ll barely have time to focus on your most important projects.
That’s why it’s important to learn how to say “no” to people.
If you desire to become rich, here are some ways that can set you up in the right path:
- Make passive income by creating a blog. If you’re interested in earning passive income from passive income streams, then you need to create your own blog. It’s one of the best ways to make money while you sleep. Starting a website with Bluehost takes less than 15 minutes and hardly costs anything. And there are several ways to monetize your website. Read our step-by-step guide on how to start a successful blog in 15 minutes.
- Start investing no matter how little you have. No amount of money is too little when it comes to investing – even if it’s only $5. That’s why an investing app called Acorns has been popular among beginner investors. Acorns takes your spare change from your regular transaction and save it and invest that change for you in a range of exchange-traded funds (ETFs). It rounds up all your transactions to the nearest dollar. And once the spare changes stack up to $5, Acorns will invest it for you.
- Maintain a good credit score. A good credit score of 750 means that more financial opportunities are available to you. It means that not only will you able to get qualified for mortgage loan, it also means you’ll get qualified for a better interest rate. And being able to get a better interest rate means that you will have lower monthly mortgage payments. This, in turn, means that you’ll save thousands of dollars on interests.
- Make extra money by taking online surveys.
Work with the Right Financial Advisor
You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.