We all dream of becoming rich but end up falling short. Here are nine common obstacles that we need to overcome to reach our goal of financial nirvana.
Think and Grow Rich by Napoleon Hill is probably one of the most read books of all time. Ever wondered why? The answer is simple. Becoming rich is the most common dream of almost every human being who has ever walked on the face of the earth.
But why is it that so many of us out there are still nowhere close to becoming rich? The real reason is that it takes more than just thinking to get rich. Becoming rich requires a plan of action, commitment, sacrifice and a lots of smart thinking.
Additional Reading: How To Get Rich Today
There are a lot of self-created obstacles that stop you from living the life of your dreams. If you want to become rich, it is important that you mend your ways and stop indulging in activities that keep you from attaining your financial dreams.
We’ve listed out nine common obstacles that are stopping you from becoming rich as well as ways to overcome these obstacles:
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You are a shopaholic
A normal person shops to fulfil the basic needs of life. But for a shopaholic, shopping IS life. Whether it’s a new electronic gadget or the latest trend in fashion, a shopaholic desires to have it all irrespective of their needs. When wants precede needs, when impulses take over rational thinking and when shopping becomes a form of therapy, a person turns into a shopaholic.
The biggest disadvantage of being a shopaholic is that you will always find yourself short of cash as you overspend on buying things that you don’t require. Shopping might give you a momentary feeling of joy but it holds you back from achieving your dream of becoming rich.
The best way to get rid of your shopping addiction is to control your impulses and focus all your attention building your wealth. You would be amazed at how much you can save if you get rid of ‘shopaholism’.
Additional Reading: Smart Ways To Save Money While Shopping Online
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You have no budget or investment plans in place
Budgets and investments are terms which we keep using in the world of personal finance. But it is baffling to see a large section of the population leading their lives without a budget plan or investment plan in place.
It goes without saying that planning a budget and following it whole heartedly goes a long way in saving money and in turn helping you accumulate wealth. The money you save from budgeting should be invested in various investment platforms like Mutual Funds, bonds, stock markets etc. to make your money grow exponentially.
One of the biggest reasons why people fail to become rich is the lack of discipline to follow a budget and ignorance in understanding the true power of investment. So, if you wish to grow rich, start taking budgeting and investing seriously.
Additional Reading: 4 Possible Leaks In Your Budget
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You live in the moment
Most people take the phrase ‘living in the moment’ way too literally. A vast majority of our population has no plans for the future and are busy leading their daily lives with nary a care for what may come their way.
They are so swamped by the daily activities and routines that they fail to save for their future. A person who goes through life without saving for his/her future can never achieve the dream of becoming rich. Wealthy people plan for their future and are always two steps ahead.
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You have no savings or insurance to tackle financial emergencies
Imagine this. You lose your job and at the same time a family member is hospitalised and requires immediate medical attention. This situation can be best described as a financial emergency and it can happen to anyone of us.
A financial crisis can strike without warning and if you don’t have an emergency savings fund to tackle it, you are doomed. Most of us focus on what is happening in our life and never tend to think of financial emergencies that can come knocking at our doors unannounced.
One of the key rules of becoming rich is to prepare an emergency fund for tough times so that you are not forced to go into debt when a monetary crisis arises. Apart from having an emergency fund, it is essential to buy a Health Insurance policy that can cover all medical expenses in case of hospitalisation or illness. You can make plans to save money, invest and grow rich, but if you are not prepared for a financial crisis, it can eat into your savings and send you back to square one.
Additional Reading: How To Get Over A Financial Crisis The Captain Cool Way
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You are being too conservative or too rash with your investments
Two types of investment strategies can spoil your dream of getting rich – investing too rashly and investing too conservatively. Putting all your savings into the stock market may have worked for you in the past but it can spell doom if you continue to do so as a market crash can lead to a great loss of money. Such an investment strategy is rash and extremely risky as slight changes can make or break your dream of growing rich.
Similarly, if you put a major chunk of your money in a low yield bond, you may be guaranteed fixed returns but you are stifling the chance for your money to grow manifold. Such kind of investment is too conservative as it doesn’t allow your wealth to expand thanks to a low interest rate. Diversifying your investment portfolio is the best way to have some control over the growth of your money.
Additional Reading: Tips For Ideal Portfolio Diversification
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You were late to start saving
You may have heard of the saying, ‘It’s better late than never’. While it holds true even in the world of investment and savings, keep in mind that it is always better to start investing or build savings as early as possible.
A large percentage of people start saving and investing in their 30s when they understand the role of investment in money growth. But they miss out on the chance of growing their wealth drastically by not saving money and investing it in their 20s.
So people who start saving and investing late rarely become as rich as they wanted to be. While there is no remedy for investing late, it is wise to start saving and investing right now as the growth of money will only stagnate the longer you delay.
Additional Reading: 5 Money Mistakes To Avoid In Your 20s
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You are a whiner not a winner
There are two types of people out there: Whiners and Winners. Whiners are the ones who cry and complain that they don’t have enough money, while winners are the ones who plan and act to change their financial situation. Unfortunately, there are a lot of whiners out there who just worry about being financially challenged and never making changes in the way they handle their money.
One could go on and on counting the hardships one had to face due to lack of money, but only those who think positive and plan for their future grow rich. So, it is up to you to decide what you want to be. Do you want to be a whiner who complains about being poor or do you want to be a winner who takes steps towards growing rich. It’s all up to you.
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You carry around debt
Nothing strangles your dreams of becoming rich more than carrying a mountain of debt on your shoulders. From Credit Card bills to loans, debt has forced many of us to put our dreams of becoming rich on hold.
Spending more than you earn and not being prepared for emergencies are two of the biggest reasons that lead to debt accumulation. And the nature of debt is such that until it is cleared, one can’t focus on growing one’s wealth.
If you are carrying debt, the only way to get onto the road to riches is to repay your debt as soon as possible so that you can divert your money into savings and investments.
Additional Reading: 5 Tips On How To Get Out Of A Debt Trap
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You find excuses to procrastinate saving
Procrastination is to savings and investment what termites are to wooden furniture. By now, everyone knows that saving and investing are key to wealth creation. However, most of us still procrastinate when it comes to taking action to rectify our financial situation.
From lavish vacations to spending a bomb on weekends, we always seem to find ways to put off saving and investing. Only by overcoming procrastination can we start think about becoming rich over the long run.
Additional Reading: 6 Terrible Consequences Of Procrastinating Credit Card Payments
Once you steer clear of these obstacles, your money will grow by leaps and bounds. Remember, to grow rich, it is important to stay committed to your financial plan and focus on saving and investing.