Nine reasons you aren’t rich!
And... how to fix it!
1. You're listening to the wrong advice
As soon as we start thinking about doing something different we look for advice and confirmation. Often the first place we look is to our friends and family. It is amazing how many experts there are at backyard BBQs. Make sure you are getting the right advice.
Rich people check what their advisers have, or if they done what they want advice on.
2. You're doing your banking incorrectly
Asking a bank how to do your banking or what type of home loan works best is a little like asking the mouse where to put the cheese. The banks WANT you to take 25 or 30 years to pay off your home loan. That is profit for them.
Rich people do their banking to free them from their mortgage early – without it costing them their lifestyle!
3. Your life is a mess
What I mean is – messy, disorganised, chaotic. If you get organised, you will have more time and money. Seriously. You may know (and want to murder) a superwoman (or man). Someone who seems to have it all together, turns up at work on time, with every hair in place and a delicious home-made lunch for the fridge. AGGH! Bet they have more money in the bank too!
Rich people are organised – declutter! It works!
4. The Einstein Theory
If you keep doing what you are doing you get more of what you have got. You need to make changes if you want changes. Time goes so quickly. Think about what you were doing and what you had 5 years ago, are you moving forward or are you standing still.
Rich people refocus and make changes regularly.
5. You're buying assets that aren't
We are collectors, we like stuff! The biggest thing holding most of us back is often our habit of buying things and paying things off. We collect things that devalue rather than appreciate in value. Even the big ticket items like cars and furniture devalue. We double the resulting ‘un-wealthiness’ by buying them with high interest loans or putting them on our credit cards.
Rich people borrow to buy appreciating assets and avoid debt on depreciating assets.
6. You're working hard and getting nowhere
Because of all of the reasons above, you could be working hard and getting nowhere. It is time to stop and take stock.
Rich people make plans and prioritise what is important.
7. You think Wealth equals money
Money is awesome but it makes the worst investment. Money devalues over time so if you retire on money you have a time bomb on your hands, with a very short fuse. You need to have your future wealth in money producing investments rather than in money itself.
Rich people choose property investing for three reasons: 1. It increases in value, 2. It can’t disappear and 3. The income increases with the cost of living.
8. You want to be Debt Free? Big mistake!
While I am an advocate of reducing your personal mortgage, and having no consumer debt, fear of debt is the biggest cause of retirement poverty. Borrowing money for wealth creation creates more wealth.
The Rich use other people’s money (OPM) as the strategy for creating more wealth.
9. You don't write down your goals
It is well documented that those who have goals are 10 times more successful than those without goals.