Do you want to be wealthy? Here are Some Money Mistakes to Avoid on Your Way to Being Wealthy
Wealth, in its simplest terms, is the value of all the resources that are possessed by an individual or society. In order words, someone’s wealth is determined by the aggregate value of everything the person owns that can be exchanged for money, goods or services.
Wealth is freedom. It is much more than just money. It is the freedom to do what you wish and when you wish. It is the freedom that comes with not worrying. There is a difference between being rich and having wealth.
Making a lot of money is one thing, getting rich another and creating wealth is definitely what very few people know very little about.
It is true that the wealthy respect and pay attention to their money knowing that nothing multiplies without attention. They also know money wants to be loved and acknowledged.
The wealthy also avoid mistakes that big income earners and the rich make. Here are some of such common money mistakes you must avoid to create your own wealth and become wealthy:
You must Seek Comfort but not Freedom. Comfort is the enemy of abundance and the most dangerous element of finances. Don’t rest early while you are supposed to be working in order not to work later in life when your mates are resting. Rest only when you have achieved your goal. That’s when you can enjoy your comfort.
Depending on one income flow Will not help. No matter how big your income is, never depend on one flow. There was an executive who earned approximately $350,000 a year, the top 1 percent of all incomes. Suddenly the industry she worked in came to a halt and her one income flow was shut down. This has happened to many people, destroying many hopes, especially during this period of recession in Nigeria.
To create wealth, you must make investments that will create dependable streams of income flows, independent of your main source of income.
Stop Comparing to others. Comparing your finances to others will ensure you never create wealth. People often compare their situation to some starving individuals in other places, family or society to justify being “better off.” Another person’s finances, good or bad, will not pay your bills, won’t fund your retirement and will not provide you peace of mind. Don’t compare your finances to someone else’s.
Avoid Investing in trends. Avoid investing in the latest and greatest technologies that can be displaced by new technological developments.
Some wealthy individuals invest in electricity, railroads, banks, insurance, soft drinks, food companies and candy. Don’t get on the roller coaster. Take the longer, slower ride that guarantees arrival.
Beware of trusting without proof. The single biggest mistake anyone can make in their financial life is naïvely trusting a group of people because they like them and or it feels right. Disregard your feelings when it comes to people and always look for solid evidence. If you are so close to people that you are not willing to ask them to provide evidence, make it a policy not to do business with them.
The Myth of Saving to become wealthy. It is impossible to create real wealth just by saving money. The banks only pay .25 percent, so it will take you 40 years to grow your money 10 percent if rates stay where they are. More importantly, money that sits around idle always seems to find an emergency to fund. Also, the suggestion is, do not carry cash or credit cards because when either is available, you’ll create a reason to use it.
Pretender Spender. On the other end of the spectrum is the pretender spender. They try to impress others with how they spend money. It’s not their money, it is always someone else’s. Sports cars, expensive clothes, designer bags, shoes, V.I.P. tables — the list is endless.
The wealthy are not trying to impress anyone, they are seeking freedom.
When the wealthy hit affluence and abundance, they start throwing money around on ridiculous things — cars, boats, planes, vacation homes. By then, it no longer matters that the things are poor investments. The very wealthy may appear to be flaunting their money with extravagances, but in reality they are not. The money they are spending is miniscule compared to the abundance they’ve created.
Sounds good doesn’t it? So what will it be for you: middle class, rich or wealthy? Remember, wealth provides you with options and the person that has options has freedom.