Contrary to popular belief, "Everyone has the same opportunity to acquire wealth," says self-made millionaire Steve Siebold.
But not everyone seizes the opportunity.
To find out if you're doing all that it takes to set yourself up for a rich future, we've rounded up 10 signs that indicate you're not on the right path.
From living beyond your means to failing to establish financial goals, check out the 10 signs below.
Previous reporting by Kathleen Elkins.
SEE ALSO: 15 habits of self-made millionaires, from a man who spent 5 years studying rich people
DON'T MISS: The 8 best pieces of saving advice from real people who banked a fortune
You only work hard, not smart.
In school, we learn that hard work will get us ahead in life. But, "that's only half the story," says top financial adviser Ric Edelman.
"If all you do in life is work really hard, you're never going to get wealthy," he said. "Because it's not enough that you work hard to make money to set some of it aside."
Edelman says in order to ensure future wealth, you must "equally" work smart. One way he suggests working smart is to invest your money in the stock market or a retirement fund.
That is, taking advantage of compound interest by investing so that your money earns money on itself. "You can do this without taking a huge amount of risk, you can do this without a lot of effort, you can do this without a lot of time," he said.
You put too much emphasis on saving — and not enough on earning.
Another way to work smart? Increase your earnings, not just your savings.
Saving is crucial to building wealth, but you don't want to focus so much on saving that you start neglecting earning, which is what rich people focus on.
"The masses are so focused on clipping coupons and living frugally they miss major opportunities," Siebold writes.
There's no need to abandon practical saving strategies. However, if you want to start thinking like the rich, "Stop worrying about running out of money and focus on how to make more," Siebold advises.
A common thread among millionaires is that they develop multiple streams of income and adopt smart savings habits.
You buy things you can't afford.
If you live above your means, you won't get rich.
Even if you start earning more or get a hefty raise, don't use that as justification to give yourself a lifestyle raise.
"I didn't buy my first luxury watch or car until my businesses and investments were producing multiple secure flows of income," writes self-made millionaire Grant Cardone at Entrepreneur. "I was still driving a Toyota Camry when I had become a millionaire. Be known for your work ethic, not the trinkets that you buy."
See the rest of the story at Business Insider
from Strategy http://ift.tt/2qacVki
via IFTTT
No comments:
Post a Comment