Many people have enjoyed the dream of someday being rich. Rich for most people is not necessarily being fabulously wealthy. It probably does not include being a member of the rich and famous crowd. In fact, the average person does not even want the power that comes with vast amounts of wealth. No, most of us just want to have enough money so that we do not have to worry about cash flow and can enjoy a comfortable lifestyle. Rich is defined best for most people by simply having financial independence.
Since the bookshelves are inundated with plenty of “how-to” books on getting rich, it seems that these have little value in producing the wealth that people crave. So, just why is it that people in the United States are not rich. Here are ten possible reasons that the unrich are and will remain that way.
1. Many people are inherently lazy. They will work while the time clock is ticking. When it stops at the end of the shift, so do they. Almost no one gets rich working for somebody else. It this could be done, everyone would be working for that company.
2. People start saving too little too late. This means that they have a lack of vision. Their life is spent living in the moment without looking ahead a few decades. Unless you are able to find a product that becomes a national rage, you can only build wealth one step at a time. It is like laying bricks. You start early and keep at it for a long time and progress will be made.
3. Most people do not develop multiple streams of income. This means that you may be working a day job, but you begin to find other ways to bring in dollars to your coffers. You do not have to bring in megabucks, you just need a little each day from each source. Even a dollar a day if you have a hundred different ways to bring that dollar in will amount to more than $30,000 per year.
4. No one wants to wait for all of life’s toys. New cars, new furniture, new clothes, and new electronics. These along with everything else people think they cannot live without will not only remove cash from an investment portfolio, but may result in massive debt. Any personal debt not tied to an appreciating asset like a house is a major enemy to building wealth.
5. Wealth is lost by wasting money on frivolous items that have little chance of bringing a return. Most gambling falls into this category. This includes buying up lottery tickets with atrocious odds against any possibility of winning.
6. Becoming rich is not in your future if you choose to consistently live a lifestyle equal to or above your income. You have to develop a sense of save now and play later. The very least you should attempt is to play a lot less now. Learn to say no to yourself and others when you are invited to do things that you cannot afford.
7. Choosing to eat all of your meals in restaurants is a poor decision for building wealth. With a measure of care, you can always prepare meals at home for less than half of eating out. When leftovers are factored into the mix, the cost plummets to pennies on the dollar.
8. People do not accumulate wealth because they never see saving money as an income source. Make saving money your other full time job. Make a game of looking for ways to shave dollars off of your spending. Often buying used over buying new can save huge sums of cash. Think used car, used equipment, used clothing, and so on. Only shop for sales and clearance items.
9. Purchasing items that you will not need immediately can impact your ability to move ahead financially. During World War II, the slogan in the ration coupon booklets was “If you don’t need it, don’t buy it.” This is still good advice. You may never need the item in the future if you do not need it now.
10. People can fail to get rich because they collect too much. When you are finished with an item, if it still has value, sell it. Ten years of storage in a garage or basement will render the item worthless many times. You may even have to rent more space to store things that you will never use. Get something for it when you are finished with it.
