REASONS WHY MOST PEOPLE DONT GET RICH
Heres some reasons, as per an article I read recently:
Reason 1 – People wait too long to start
Many investors are waiting for everything to be “perfect” before they get going. They wait for the right time in the cycle, the right property, the right economic environment or the right interest rates. Which means they never get going. The longer they wait to get started with investing, the longer it will be before wealth is increased. It takes time to grow real wealth. It takes time for the power of compounding to increase wealth. Invariably the timing will never be perfect or you will never have all the information you want. There is a need to develop the confidence to make an investment decision based on knowing enough and realising that you will learn the rest along the way.
Reason 2 – Fear stops them
Fear keeps many of us from getting what we want, especially in matters of money. Fear holds many investors back. Some fear taking on more debt, others fear failure and some even have a fear of success Successful investors have learned to harness their fears and rather than focus on the negatives, they use fear to force them into positive action. For example, rather than allowing fear of debt to stop them taking on the commitment of buying an investment property, they use the fear of not moving forward with their investments to motivate them. They use the fear of being stuck in their job for the rest of their lives, without the financial independence that they are craving, to motivate them to take on the commitment of an investment property.
Reason 3 – Waiting until they
The fear of not knowing enough prevents other investors from getting started. The irony here is that the more you learn, the more you learn that you don’t know! Once you start learning some basic investment concepts you suddenly realise there are a whole lot more things about investing that you don’t understand. The way out is to recognize that while you don’t know it all, and you never will, you do know enough to get started with your investing and you will learn more along the way as you apply your knowledge in the real world, surviving any mistakes and challenges along the way.
Reason 4 – Focusing on linear
income instead of passive income
All income is created equal. Some streams are linear and some are passive. Linear income is what you get from a job. You work for an hour and get paid once for that hour’s work, and that’s it. If you don’t turn up to work you don’t get paid. Passive income is when you work once but continue to get paid over and over again from work you’re no longer doing. The way to become wealthy is having passive income coming in whether you go to work or not. To put it simply “if you’re not making money while you sleep, you’ll never become rich.”
Reason 5 – Not using systems for
A system for making money is something that takes the emotion out of your investment decisions and makes the results more reproducible.
Reason 6 – Not being patient
Warren Buffet once said: “wealth is the transfer of money from the impatient to the patient.” To become a successful investor requires patience and persistence. There is a requirement to not only get started, but you must continue on and follow through. Many investors speculate rather than invest. They look for that “big deal” which will land them a jackpot in a short period of time. In general these types of deals rarely occur and if you find them, are speculative in nature and more risky.