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
know enough
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
making money
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.