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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.

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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 March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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