Everyone has their own definition for wealth for some it’s a matter of millions and some have such amazing models that money follows them virtually on auto pilot, generating billions and still counting. When we talk about millions and billions its only selected demographics, but what about the hoi polloi and a large section of populace that have got all in them what it takes to achieve financial freedom but never became wealthy.
We all at some point in life do make resolutions for wealth in some form or the other but most never continue to get what they can get primarily because of slip-ups.
5 Mistakes That Causes Wealth Gap:
- It Never Occurs to Become Wealthy:
A boy born next door never meet or known anyone in the family who is wealthy, goes to school, socialize with people who are not wealthy, the boy has a social and reference group outside work who is not wealthy and has no role models who are wealthy, therefore, it never occurs to him he can ever become wealthy. If this has happen to any of the reader after 20 years of adulthood they can become mature in the society and achieves the wealth goal, the hindrance was, it never occurred to them they can become wealthy and if It never occurs, they will never take steps to make it a reality.
- Never Decides to be Successful:
I have met many people who tries to achieve financial independence only by reading random books here and there, attend lectures, or associate with people who are financially independent, it may never happen to become successful unless they don’t implement what they have learn and make a firm unequivocal commitment to do something different. Even if they think they can become wealthy by doing certain things in certain ways it may not connect unless the person decides to take the first step, else, they end up staying as they are.
They do wish and pray they will make a lot of money but never decide, “I am going to do it”. This decision is the essential first step to become financially independent.
People always have a good reason of not doing what they know they need to do in order to achieve financial independence. It’s always the wrong month, wrong season or the wrong year, there always seems to be a reason to procrastinate, therefore, they keep put if off month by month, year by year until its too late. Even if it occurred to them and have also make a decision its procrastination which will put all the plans in jeopardy and indefinitely nothing will happen.
- Inability to Delay Gratification:
Economist terms this phenomenon as Inability to delay gratification. The great majority of people have irresistible temptation to spend every single penny they make, whatever else they can borrow or buy on credit. If one cannot delay gratification and cannot discipline to refrain spending everything one has make, therefore, one cannot become wealthy. As W.Clement Stone said, “If you cannot save money, the seeds of greatness are not in you.”
- Lack of Time Perspective:
It can be defined as the amount of time you take into consideration when planning your day to day activities and making important decisions in your life. Time perspective referred to how far you projected into the future when you decide what you are going to do or not do in the present.
The young couple that begins putting $50 dollars a month aside in a scholarship fund so that their newborn child can go to the college or university of his or her choice, this couple thinks with long time perspective. They are willing to sacrifice in the short term to assure better results and outcomes in the long term. People with long time perspective almost invariably move up economically in the course of their lifetimes.
How to Avoid the Wealth Gap:
Once I read a book, the Richest Man in Babylon, which became worldwide best seller, sold millions of copies in many languages; it had one basic principal: “pay yourself first”, subsequently, this means, you will save and invest at least 10% of your income throughout your working life. Take 10% of your income on top off your paycheck each time you receive one, pay yourself first and put this in a special account for financial accumulation.
Investing and saving money lifelong is not an easy task it requires tremendous will power and determination but once this practice locks in and becomes a habit your financial success is virtually guaranteed.
Start today by saving 1% off your income in a separate account in the beginning of the month, learn to live on the other 99% off your income, once you are comfortable living with 99%, raise your saving goal to 2% and live on 98% then raise it to 3%, 4% so on and so forth. Wow! Within one year you will be saving 10% off the income or may be 15% and living comfortably off the balance, therefore, the savings will begin to grow and in a miraculous way your debts will start to pay off one after the other and your financial life will be under your control and you will be on your way to become a millionaire.
This process has worked for many who have read the book, Richest Man in Babylon. The key is to start today by depositing $5-10, in the account and look for every opportunity to add to this account and begin to study money so as you can grow your money, read books and magazines by experts on the said subject. Never stop learning and growing unless you become financially independent.
“If you will continue to do what we have always done, you will continue to get what you have always got.”