We live in a world where everyone wants to get rich, but the reality is that few of us want to take the necessary steps to get there. In the first entry in this series, we looked at some of the things that may be holding you back from living the life you want to live. These included everything from spending all your money to running up credit card debt to failing to grow in your professional life.
In this entry, we’ll take a look at five more reasons you may not be living up to your potential financially. If you feel like you should be in a better place than your are now, see if you’re making any of these mistakes:
You’re Not Saving
You may not be spending more that you’re earning, but even if you’re “only” spending everything you earn each month, you’re going to find that it’s almost impossible to get ahead. You should be saving as much of your money as you can each month, and if you haven’t started a retirement fund, you should. It may seem like a burden now, but down the road you’ll certainly be glad that you did it.
You Don’t Have An Emergency Fund
Some people think that they don’t need an emergency fund because they have savings, but the two are definitely something that should be separate. An emergency fund includes everything you’d need to live for the next three to six months if you were to lose your job today. It gives you a bit of security in a worst-case scenario, and lets you avoid having to cut into your savings or rack up credit card debt to keep yourself afloat.
You’re Too Busy Complaining
It’s far easier to make excuses than it is to take action, but that doesn’t make it right. Maybe you’re not saving because it’s “too hard” to cut down your spending. Perhaps you want to invest but it’s just “so complicated” that you wouldn’t know where to start. Well, it might be cliche, but guess what – life’s hard, life’s complicated. Instead of listing the reasons you can’t do things, make a list of your goals and get to work on making them happen.
You Buy Everything New
Having new things is nice, but buying everything new is usually a huge waste of money. From cars to clothes to furniture, if you’re smart and willing to do a little extra work, you can usually get the things that you want in great condition for a fraction of their retail price. Of course, buying used junk isn’t a smart move either, so make sure that what you’re buying is still in good condition, or you’ll wind up losing extra money when you have to replace it.
You’re Not Automating
If you have to take money out of your account to move it into savings every month, the temptation to “forget” or to reason with yourself until you leave it in your regular account will always be there. Instead of the hassle of going through that process every month, just set up automatic transfers into your savings account. That way it’s out of your hands, and you know exactly when it will happen every month, so you can plan around it.
Do any of these sound like things you’re doing? What steps have you taken to rectify your situation? Join the conversation in the comments below.