Have you ever gotten a feeling that you’re stuck in a slump with your money? I know I have, that feeling of being forgotten or even cheated out while everyone else around you seems to be prospering. What I discovered while climbing my way out of financial burden wasn’t that the world was trying to cheat me; but in all honesty, I was cheating myself. Today I’d like to touch on five things that I realized I was consistently doing wrong; and in doing so, I hope to help you see things about YOURSELF that you may want to change as well.
I Failed to Learn About How Money Works…
What makes a person wealthy? Is it pure luck? Or is it from having some sort of knowledge about money? While we could talk all day about lottery winners and trust fund babies, the truth about wealth isn’t in how much money you are given, but how much money you are able to earn and invest. Once you’ve mastered the ability to make money work for you, will you ever know the meaning of being wealthy. A (rich) man once told me, “You never become a millionaire by knowing how to SPEND your money, but rather by knowing how to INVEST it“, and while I have no argument in saying that there some of us that get a head start in being rich, the fact of the matter is: many of those people lose THOUSANDS if not MILLIONS of dollars by not knowing how to manage it. I’ve heard of lottery winners ending up with a bigger financial burden than they had before winning their riches… and I’ve seen first hand family fortunes get whittled away to nothing because of an heir that was never taught the value of money. It never ends well for any of us if we can’t learn to control our expenditures.
I Cared TOO Much About My Image…
While it is true that in the world of business it is important to present yourself professionally; what we tend to do is mistake professionalism with luxury. Designer suits and high-end sports cars may look good, but they will never help your net worth grow if you keep spending all your money on “looking the part”. The biggest excuse I hear from people is the fact that their friends have nice things, so they deserve nice things too. I hate to be the bearer of bad news, but if you constantly try to keep up with what your friends are doing, then you aren’t really living your own life… you’re living theirs. At the end of the day, if your friends actually care about what kind of car you drive or how big your house is, then you need to find yourself some new friends. Be content with who YOU are. Remember one of my golden rules, “Live below your means”. It is a known fact that we make purchases time and time again simply to impress others, but once you learn to stop caring about what other people think of you, you will finally be able to control your money.
I Thought One Income was Enough…
One of the biggest causes for never finding financial freedom has to do with the amount of revenue we feel we need in order to flourish. I can guarantee that the majority of us who struggle do so because we expect to live on only one income. Do you think CEO’s of major corporations and successful entrepreneurs are the only ones living well? The truth is that there are many people out there that don’t have a major title yet still find a way to succeed. How do they do it? PASSIVE INCOME. When I was growing up, I had a friend who’s dad owned his own business, and while you could call him an entrepreneur, he didn’t rely on solely that one source of income. It wasn’t a giant operation; it was a small local business that he ran by himself. What set him apart from the rest of us was the fact that he had also invested into real estate so he had rent checks coming in every month — and on top of that, he had invested in the stock market. Those two things brought two more assets to his family’s worth, and while he wasn’t fabulously wealthy (at least not to my knowledge), he was well off, he could easily provide for his family and make sure his son could go to school, play sports, join boy scouts etc. Many mistake financial freedom for belonging to the people who are in the top tax brackets, when really it can apply to even the middle class if you manage your income correctly.
I Blamed Others For My Own Failures…
Now this next one may be hard to admit for some of you and I apologize to any who become offended by it, but the reality is: WE DECIDE OUR OWN DESTINY. While we all face the same world when we step out into it, why is it that some of us live on “Struggle Lane” while others live on “Easy Street”? It’s because Easy Street is never that easy to get to. You can’t find it on an atlas and you can’t look for it on Google maps. You will only find it, if you go out and search for it. What separates success from failure is what we do when we get lost along the way. While it is easier to blame others for our failures, it is unhealthy for us to do so. When we put the blame on someone else, we essentially are telling ourselves that we are perfect and that we don’t make mistakes. By doing this, we cheat ourselves out of ever being able to better our knowledge, our methods, and our lives. Only once you are able to recognize your mistakes, will you ever be able to learn from them. No one is perfect and everyone makes mistakes, but its what we do about those mistakes that will determine whether we become a rising success story or a constant tragedy.
I Believed Credit Cards and Loans Were the Answer to My Problems…
A mistake people make time and time again when they are struggling with money is trying to solve their problems by borrowing MORE money. This doesn’t make you any better off than you were before because that money isn’t really yours to keep. In fact, with the interest rates that are on credit cards and personal loans, you’ll end up losing even more of your hard earned money when you have to pay those loans off! So why is it that so many of us feel the need to have at least one credit card in our wallet? It is because we dismiss our ability to be patient and we lack the discipline to save our money in the first place. Many will use the excuse, “it’s in case of an emergency”, but what’s funny is that you could also say the exact same thing about a savings account as well. The difference comes down to who that money belongs to. While a savings account is money that is yours to keep, credit cards and loans belong to someone else. When people decide to get a credit card for reasons other than bettering their credit score, they are essentially telling themselves that they’d prefer someone else to gain interest rather than gaining it themselves. I know what it’s like to want a new car, or to have a safety net when times are rough. What I realized though is that I could still have all of those things if I simply put it into an account to grow rather than constantly giving it to someone else.
These are some ways why you might be seeing a small amount of dollar signs in your bank account. I hope this article is something that you can use when figuring out how to change your financial situation and by no means was this a way to point out people’s faults. Like I said before, only once you are able to recognize your mistakes, will you ever be able to learn from them and I believe that to be the truth. If I can find a way out of hard times so can you. All it takes is a little time and some effort on your part.
As always, if this article taught you something valuable or inspired you, make sure to bookmark my site and find me on social media through the links below to keep up with all of the upcoming articles I have planned for the future. Also, feel free to join my social club on Facebook if you would like to connect with others who are also looking to better their financial situations. While no one has joined it yet, I hope you take the chance to check it out. I would love to talk to you all more in depth about your financial goals and aspirations. Thank you for your support, and I’ll see you again soon.
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