Wealth acquisition is as much about your state of mind as your income.
If you don’t have the right mindset, you may never reach your dreams no matter how much money you earn. Likewise, even people with moderate incomes are able to accrue powerful savings and gain financial freedom.
If you’re having trouble meeting your financial dreams, you might be victim to one of the five following issues.
All of these problems stand in the way of financial success. Fortunately, understanding and confronting this mindset is the first step to liberating your financial future.
Five Stumbling Blocks That Prevent Financial Freedom
1. Not paying yourself first. Many people make the mistake of spending first, intending to put aside their savings out of whatever is left. This is the wrong mindset.
You can always find something you have to spend your money on, be it a luxury you feel you deserve or an emergency repair that comes up. When that happens, your savings dwindle.
Commit to saving money first and spending second. This will force you to be creative in how your money is spent, and it ensures that your wealth grows.
2. Carrying high-interest debt. When you spend more than you have, you cannot accrue wealth. The first step to achieving financial freedom is to cut loose your toxic debts. Focus on paying off credit cards, loans and other high-interest debts first, then set aside all of the money you’ve saved into an investment that will gain value rather than losing it.
3. Spending your money on depreciating assets and one-time purchases. When you have money, it’s tempting to spend it on nice things, but these costly belongings represent a money-sink that you cannot recover from.
Instead of paying top-dollar for state of-the-art electronics and new cars, which will lose their value within a year or two, focus your largest purchases on appreciating assets, like real estate. Opt for more frugal solutions for your depreciating belongings, like paying cash for a car that’s a few years old.
4. Not having your spouse on board. When you’re married, financial issues become a matter of team work. You can’t save if your spouse is always shopping. You can’t pay down your debts if your spouse runs up the credit card balance. Sit down and communicate your goals and dreams, then make a plan for both of you to make them happen.
5. Not making your money work for you. Accruing wealth will only get you so far if you let it sit in a bank. In order to achieve real financial success, you need to grow your money through safe but lucrative investments like real estate.
Feeling that you aren’t where you want to be financially can contribute to stress, lack of self-confidence and depression.
Taking control of your financial future starts with education.
If you are looking for an easy to read resource on wealth creation, consider reading my book, “Stop Trading Your Time for Money”. Click the image below to learn more: