Everybody at some point of their life has that dream of having enough money to do whatever they want whenever they want irrespective of cost. Well, even if you do think about cost, that idea of becoming rich enough to walk in and tell your boss this is your very last day. If you want to get rich, here are five things that may be in getting in your way from achieving financial independence, purpose, and freedom.
- You care what your neighbor’s think– There are still many people holding on to their overpriced real estate waiting for it to come back. In the meantime, the mortgage along with all the fixins you really couldn’t afford when you bought that house are killing your bottom line. I believe most people are hanging on to those properties today along with the country club membership because of their egos and fear about what their neighbors will think. It’s hard to swallow your price because you know your neighbors might gossip about you at the next party in your development or subdivision. Do the right thing. The quicker you get to a manageable house, the quicker you will see your net worth climb.
- You can’t delay gratification– Since we live in a day and age where people want it yesterday and typically buy new items on credit, learning how to delay gratification is a big part of becoming rich. There are many temptations between new household purchases, fancy vacations, and the latest electronic gadgets. If you limit yourself to just one special item per versus many you begin to see the savings instantly. You can have a great vacation or a wonderful household purchase without breaking the bank. For your next temping purchase, just try to wait six more months before you buy it and then ask yourself if you really need it.
- You don’t use the rule of 1/3rd’s– One important wealth building strategy I have recommended to clients for years is the rule of 1/3rd’s. For any bonus, pay raise, etc., you get through work just try to save 1/3rd of that number. You can still have fun with a 1/3rd of it and a 1/3rd will likely go to taxes. This strategy will also make sure you don’t outstrip your income by expanding your lifestyle too fast.
- You don’t pay attention to your money – People who tell me that they don’t look at their 401k statements are destined to not be wealthy. You must act like the CEO of your company and pay attention to all the fine details if you want to grow your net worth. It won’t happen solely by putting it the hands of others. I do recommend getting a competent Private CFO® or financial advisor to help, but you must be the owner of your family finances.
- You have bad habits– At the end of the day, habits are important no matter what you do in life. If you have made money mistakes in the past, then you may feel like it just isn’t your thing to be good at money. Changing your attitude can change your altitude when it comes to building your wealth. It takes just 21 days to create a financial habit.
Go to www.oxygenfinancial.net to request a consultation to figure out how you can work on getting rich today.
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder oXYGen Financial, Inc
Ted Jenkin is one of the foremost knowledgeable professionals in giving financial advice and Smart Money Moves to the X and Y Generation.
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