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Monday, December 31, 2001
10 Reasons Why Most People Don't Achieve Financial Success
by Craig Lock
"Money can't buy you happiness, but it helps you to be miserable in comfort."
Reason One: Lack of Knowledge
More specifically, a lack of a desire to gain knowledge. Make the effort to read about financial matters and you will learn. Many people don't know where to go for unbiased advise so they do nothing.
Reason Two: Failure to Make Plans
Did you know that only 5% of the population sets goals and only 2% have any form of written goals? Their actions have a sense of purpose; they are results oriented; they are motivated; they are positive…they are life's winners. Where do you want to be in five years? Without a plan it is easy to drift aimlessly, and live from day to day. If you have set goals you will know what you want to achieve. People fail to succeed because they never plan to succeed. It is not that they plan to fail, they fail to plan. So set your financial goals (targets).
Reason Three: Inefficient Use of Time and Poor Work Habits
Time really is like money. You can spend it or invest it in building a better you by self-development. When you waste you are wasting yourself. Plan your day; what do you really want to achieve today?
Reason Four: Lack of Foresight
Achievers have an ability to look beyond the immediate and into the future. Although some may see your visions as dreams do not forget that you have to have a dream to make a dream come true. Unless you are fortunate enough to be left a legacy, the only money you will ever have working for you is that what you save from current income and invest. People with vision can multiply their income by investing in growth investments. Work for your money then make your money work for you.
Reason Five: The Need to Conform
Dare to be different which is why the majority of people are not successful. Don't be afraid take calculated risks. Remember the people who make big money are the ones who do the opposite of what everyone else does. Sell when everyone else buys and vice versa.
Reason Six: Poor Debt Management Through Excessive Borrowing
Lack of patience can lead to borrowing for things that lose value, so that with interest payments you pay much more for the article than it cost initially. (Especially new cars, furniture etc.)
Reason Seven: Lack of Desire as a Result of a Poor Attitude to Acquiring Wealth
Bad mental attitude has caused more personal problems than any thing else. What we expect to happen usually does. Successful people are optimists while unsuccessful people have a pessimistic attitude . Block out negative thoughts and stereotypes and mix with successful, positive people.
Reason Eight: Inadequate Protection Against Unforeseen Events
It may be the loss of a home due to natural disaster or the death or disablement of the bread winner. Adequate protection (insurance) against these events is vital to financial success. Not being properly covered has financially wiped out many potentially successful people.
Reason Nine: Lack of Discipline
Most people find it difficult to save because they save - buy - save - buy, while yet others simply buy. It is easier to say "yes" than "no." Those who lack discipline to say "no" will find financial success an impossible achievement. The "must have it now" mentality being peddled by media compels one to buy now what he can't afford by charging it in the hope that he can pay for it later. Most people are easily led by advertising and the today's easy credit.
Reason Ten: Procrastination
Many people put off a savings program until it is too late. Young people have a wonderful opportunity and advantage because they have time on their side. The reasons people give for not starting a savings program are varied and many are genuine. They also vary according to age. In their twenties they are just getting started in life with a first job and want to enjoy themselves by spending on cars, stereos etc. In their thirties they have a young family and a mortgage to support and no money. In their forties they say things are tough with kids to put through university and unexpected medical expenses, and in their fifties it is already too late with no time left to accumulate capital through the magic of compound interest.
A convenient time never comes and its already later than you think.
Craig Lock is the author of numerous books and articles on money management and life assurance, as well as how to make the most of your life.
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