For most of us, getting rich is not easy. We are not lucky enough to have been born with rich parents and we probably won’t luck out and win the lottery. In order for us to get rich, we have to be smart. Smart with the way we spend and manage our money.
If you are finding it hard to get ahead, there may be things that you are doing that are keeping you poor. Here are some things that might be holding you back.
You Have Every Satellite Channel
Are you the type of person that has to have every satellite channel and that has to get every sports package from the NFL, NBA and MLB? Do you not only have Showtime but also Cinemax, HBO and The Movie Channel? If so, chances are that you are spending 200 to 300 dollars a month on your satellite bill.
Chances are really good that you rarely watch most of your channels, you are just addicted to having them all which is a horrible financial decision. If you drop down to a basic satellite plan, you could easily save 100 to 200 dollars a month. Cut the cord completely and go to just streaming services and you could save even more.
Take that 200 dollars and do something smarter with it. Invest it. If you invested 200 dollars a month in an investment account earning 7%, you would have $104,993.08 in 20 years.
You Get A New Car Every Few Years
Cars are expensive and they are most expensive in the first few years. This is when they depreciate the most. You might think that you are saving money by always having a car that is under warranty but that is just not the case.
Most cars today are reliable well past 100,000 miles. This is why most manufacturers are starting to go with 100K powertrain warranties. If you trade in your car, whether on a purchase or a lease, you are losing out on a of of vehicle life. You are also continually facing the biggest period of vehicle depreciation.
A smarter move is to pay off your car and keep it. Be good about maintaining it and save thousands of dollars on vehicle payments. You could be pocketing an easy 500 dollars a month or more from saved payments. Money that could be better spent on investments.
You Have To Have Every Trendy Gadget
This is a big budget killer. Having to have every latest gadget and trendy electronic product could easily cost you 3000 dollars or more a year. That is $60,000 over a twenty year period and that is before interest.
New cell phones, for example, are approaching $1000 a piece these days. Even if subsidized by your carrier, you are paying that money in the form of monthly fees. There is no need to change your cell phone every year, especially when one good high end phone can last three years or more. If you must go with new phones often, stick to being a model behind and save big money.
Other gadgets can be just as expensive and are ultimately just as useless. A smart watch can easily go 600 dollars or more and new models are out every six months. In addition, you have the endless supply of useless smart devices for the home. Do you really need to control your oven from your phone?
Do yourself a favor and stop trying to keep up with the endless supply of electronics. Invest the money and be just as happy, only richer.
You Are Unhealthy
Whey you are healthy, you have more energy and are more focussed. Healthy people are just more productive. Most wealthy people have some sort of exercise regime in effect.
In addition to productivity, if you are unhealthy, chances are good that you are overweight as well. While it might not be fair, this could be costing you a lot of money. Studies have shown that the more you weigh, the less you earn.
Watching your diet is the key to saying fit but a little exercise can go a long way too, especially weight training.
You Rent Instead Of Own
Home ownership may not be for everyone, but it sure is a great way to save money without even trying. It is like a forced savings account.
There are those who would say that rent is less trouble and often cheaper than owning and this can be true. What is also true is the fact that renters never get back a penny of their rent in the form of equity.
The equity that you get from a home is a fantastic way to build tax free wealth. Yes, tax free wealth. When you sell your home right now, if you have lived in it for 2 of the last 5 years, most of it will be tax free. Single people will not have to pay taxes on up to 250.000 dollars of profit and married couples can take 500,000 dollars tax free.
You Do Not Invest In Yourself
You should be constantly investing in yourself. You can do that in a variety of ways but most fail to do so.
College is a big way. Sure, you can make a good living without a college education, but you are facing an uphill battle. You are far more likely to make a good salary if you have a college education and it is almost never too late to get one.
Besides college, there are a number of other ways to invest in yourself with both time and money. Trade schools, certificate programs and foreign language lessons can all increase your earning power.
The more you make, the more you have to invest and the richer you can ultimately become.
You Have A Negative Attitude
There is a marked difference between the attitude of the rich and the poor in many cases. Sure, you might say it is just because they are rich but for those who made their own money, they always had the right attitude.
You have to believe that you can do anything and that you can reach your goals. A positive attitude will keep you moving forward.
What holds many back is a negative attitude about their possibilities. They think that the world and the odds are stacked against them so they do not try. Don’t be that person.
You Like To Show Off
Ever heard of the 30,000 a year millionaire. This is the person who does not make a great deal of money but feels the need to act like it. This is also the person in the greatest debt who is probably the most likely NOT to succeed.
You need to give up on the idea of trying to look like the richest person in the room because it will keep you from actually being the richest person in the room. Instead of spending all your money trying to impress people, spend it on investments.
When you make it, you can show off.