Key mistakes people make when trying to become wealthy
As I have often said before, we all have the same possibilities and opportunities in life. So, the question is, what mistakes when trying to become wealthy are you making?
It’s how we take action that defines our paths. I often talk about how to succeed in life, however, we often don’t focus anywhere near enough on those areas that damage our potential of being wealthy.
I have therefore listed below the key mistakes people make when trying to become wealthy.
You don’t believe being WEALTHY is possible for you
When speaking with people over the years, I’ve always been really surprised at how many people already had such certainty around the fact they would never become wealthy.
The amount of “I am not that lucky” or “I had a bad divorce 10 years ago” or “I have kids” or “I’m too old now” I hear is absolute madness. Wealth is not down to how lucky one is, or if they have been through a divorce if they have kids or age. Yes, sometimes in life you build up additional expenses, we know this, but this should not define your potential for wealth and future income streams.
To be wealthy, the first thing you have to do is turn that mentality from negative to positive and believe that you can.
Those that are just getting by, are often in that position because they choose to be, and those that are wealthy are wealthy because they got bored of being average. It’s as simple as that!
Your salary is enough
So many people have the mindset of “My lifestyle will be based around my income” instead of saying “I want a better lifestyle – what do I need to do?” and this is where the average vs successfully wealthy comes in.
Some people are happy receiving their “salary” at the end of each month. After all, it pays the rent and bills, and a few nights out, right? WRONG – you will always depend on this one income that it just becomes the “norm”.
A lot of average people are paid based on hours per week, whilst most successful people are based on targets and success. They have confidence in their abilities so they take more risks which mean bigger returns in income.
You work hard, not SMART
It is natural to believe that working hard is what will get you somewhere in life, but that’s not the full story – You have to work SMART.
You and your money need to be working at the same time!
You work harder than your money
We have already established that our money needs to work smart as well, so another way is to increase your income streams.
A lot of people focus on saving a specific amount each month, however, they forget to increase their income.
Remember – do not neglect your earnings whilst focusing on your savings.
You don’t invest
I believe the most effective way to earn money over time is to invest. Having your money in the bank eroding against inflation is not having your money working hard, as rates are so low.
With investing the earlier you start, the better.
The good thing about investing is that you do not have to be wealthy to do so, and neither do you need to understand what you are doing. With the help of a Financial Adviser, Property Adviser, or trusted Mentor, you will be able to make your money work hard with wealth management advice.
You spend more than you earn
This is a common issue, especially with people just starting in their careers. They get one good bonus and they go and spend it all on a fancy watch! Happens all the time… they then don’t earn anything for two months and they have to dip into their savings accounts! Sound familiar?
If you live within your means you have a better opportunity at being Wealthy. Don’t destroy the opportunity because your circle is living it bigger – your time will come!!
It is not unusual that the most successful do not buy his first luxury watch or car until his businesses and investments were producing multiple secure flows of income! We reward ourselves with luxuries too early.
You choose to spend rather than save
Another common error is that we treat ourselves before we pay ourselves. In other words, we spend before we save.
An easy solution to this is to set up an arrangement with your bank so that every month, just after you get paid, a fixed amount gets sent into your savings account first. You can then calculate what you have left and can organise yourself better.
You don’t DREAM
It is always easier to accomplish something if you know what you want, right?
So know your dreams. Know what you want in life for yourself, your family, and your loved ones. Having a clear vision of what your dreams and goals are will make the whole journey so much more enjoyable.
When we enjoy something, we do it with ease.
You hate what you do
If you hate your job, manager, company, etc. QUIT NOW.
You have to have passion in everything you do in order to be successful. Whatever you do, it has to have a purpose, otherwise, you are building someone else’s dream.
Love what you do and build your own empire.
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About Mike Coady
Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.
Mike is an award-winning money coach and industry leader in the financial sector.
Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Founding Fellow of the Institute of Sales Professionals (FF.ISP), and a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.
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Blog published by Mike Coady.