“Everybody has a chance to become rich”, says self-made millionaire Steve Siebold. But the question is, how many chances do you have. It is impossible to tell the future, but if you follow the scheme below it will highly unlikely speed up your way to become a wealthy person. We have listed 9 main mistakes on the way of becoming a millionaire.
1. You think more about saving up than earning
Savings are important, but rich people are more focused on earning and not on saving.
“Lots of people think about getting more discounts and coupons, how to live modestly, and that’s why they lose large opportunities” — Siebold writes. And it does not mean that one has refuse from elementary and practical saving strategies. But if you want to start thinking as a rich man, Siebold advises to stop worrying that your money will run out: think about how to earn more. A typical millionaire is not only smart about savings, but also has several sources of income.
2. You haven’t started investing yet
One of the most effective ways to start earning more with time is to invest money, and the earlier you start the better. “On average, every year millionaires invest about 20 per cent of their income. Their wealth is measured not by how much they have earned for the year, but how much they have overall invested”, says Ramit Sethi in his bestseller “I Will Teach You to Be Rich”. The more money you can invest the better, but even a small amount is better that nothing.
3. You are happy with a steady salary
Most people prefer to be paid for time — for a month or for an hour, — while rich people prefer payment for results and are usually self-employed. “You can’t say there are no world-class professionals that work for salary, but this is the slowest way to wealth”, — Siebold notes. Working at a place where they pay a reasonable salary and regularly increase it is, in his words, the way to financial mediocracy.
4. You buy things you can’t afford
If you live beyond your means you will not become rich. Even if you start earning more (or you have your salary increased), it is not a reason to increase your expenses. “I didn’t buy expensive watches or cars until my business and investment have provided me with several reliable sources of income”, — tells millionaire Grant Cardone — “When I became a millionaire, I still drove Toyota Camry. Let people know you by your attitude to work and not by the things you buy.”
5. Following somebody else’s dreams
If you want to achieve success, you need to love the things you do. Too many people follow somebody else’s dreams, for instance, the dreams of their parents, says Thomas Corley who has studied self-made millionaires for several years. “When you follow somebody else’s goals and dreams, you will ultimately be unhappy in your profession”, — notes Corley in the book “Change Your Habits, Change Your Life” — “and this will reflect on your results and on your earnings”.
6. You seldom leave your comfort zone
If you want to become rich, successful and to break free, you need to get used to uncertainty and discomfort. Rich people even find a sort of comfort in uncertainty. “Physical, psychological, emotional сomforts are goals of the middle class” — Siebold writes. — “It is not easy to become a millionaire and the need for comfort is devastating in this regard. That is why rich people learn to feel at ease in the state of constant uncertainty”.
7. You don’t have specific financial goals
Money do not emerge by itself, you need to work on it. If you want to become rich, you need to have a particular goal and then build a financial plan how to achieve it. Rich people make a conscious choice in favor of wealth. It requires focus, courage, knowledge and lots of effort, and mainly specific goals and clear understanding where you are going, specifies millionaire Harv Eker. “The main reason why most people do not get what they want is that they simply do not know what they want”.
8. You spend money first, and your savings are what’s left
Millionaire David Bach writes in this book “The Automatic Millionaire”: Most people when having earned some money, firstly pay the others. They pay the landlord, their bank, their government etc.” If you want to become rich, put a certain amount aside, and only then spend. Bach recommends putting at least 10 per cent of your income aside and do it automatically. This way you won’t even see this money and will learn to live without it.
9. You think that wealth is unachievable
“An average person is confident that wealth is a privilege of lucky ones”, — Siebold writes. — “The truth is that in capitalistic countries you have all the chances to become rich if you bring considerable value for other people”. Start asking yourself “Why not me?” — suggests Siebold. Then start thinking big. Rich people have high expectations.
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