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What’s The #1 Thing Stopping You From Becoming Rich Right Now?

What’s The #1 Thing Stopping You From Becoming Rich Right Now?

A lot of people talk about getting rich, and yet there are only a small percentage of people who actually achieve it. So what’s stopping people from becoming rich?

Well it isn’t knowledge. Thanks to the internet and libraries, there is a ton of knowledge available on how to build your wealth. Whether you’re interested in business, real estate, or the stock market, there is a ton of advice from experienced experts to guide you along the way.

The Biggest Reason Most People Never Become Rich

No matter which route you take to build your wealth, there is one important factor that will determine your success or failure…

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Your financial control

This is basically your ability to spend less than you earn, while using the difference to grow your wealth.

How Most People “Control” Their Finances

I have a friend who’s a financial planner, and she finds that most people are suffering from money troubles. No matter if her client’s income is $30,000 or $500,000 a year, they’ve grown their lifestyle to match their income (or exceed it).

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She tells the story of a woman that was earning $10,000 a month and estimated her spending at “about $3,000 per month.” The woman suddenly got quite embarrassed when my friend inquired about the bank account that held her extra $7,000 a month she was saving. Of course there was no bank account, and she was really spending $10,000 a month.

And that’s the reality for most of us… we spend everything we earn. The question is whether we’re spending it on things that will really get us what we want in life.

How To Build Your Wealth

There is an age old – yet often ignored – principle in personal finance called Pay Yourself First. The idea is to put at least 10% of your income away as soon as you receive it. This money goes into your financial freedom account, and you simply live off the difference as you build your wealth.

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Now before you scream at the computer, “I can’t afford to put aside 10% of my income,” hear me out. There was a time when you were in college or had a low paying job and you managed to live on that income. Then, as your income has increased over the years, so has your spending.

Forming Your Financial Freedom Habit

Paying Yourself First is simply a new habit and once you get started it becomes quite natural. You’ll actually be amazed that you don’t miss the 10% at all after a while. You’ll also be amazed by how quickly your financial freedom account grows.

The amount isn’t as important as the habit you are forming. If you think 10% is a stretch then start with 1% and increase it from there. I have heard of people starting with just a few dollars a week, yet the habit they built allowed them to grow their financial freedom account significantly.

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How To Sabotage Your Progress And Never Be Wealthy

The worst thing you can do is say you’ll start building this habit when you make some extra money. If you can’t look after the amount of money you have now, then you won’t be able to look after a bigger amount later. It all starts with the habit and the money will follow.

As the amount grows, you need to be disciplined and keep it locked away in your financial freedom account. No dipping into it for emergency bills or must-have purchases. Especially don’t touch it if you believe you really need a vacation (start another account for that).

You’re Making A Decision Either Way Right Now

You can decide to be wealthy or you can decide to be like most people that struggle financially. Whatever you decide is fine, and it’s completely up to you.

However, if you want to be wealthy, then you need to start your financial freedom account right now. It’s the easiest and simplest way to guarantee you’ll be wealthy in your lifetime.

More by this author

Craig Dewe

Craig founded Lifestyle Outlaws, with the belief that everyone should have the time, money and health to do what they want with life.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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