If you’re like many consumers in America today, you’re probably having trouble keeping your financial head above water. No matter how many hours you work and how much money comes in, by the end of the month it’s all gone and you sit there wondering how it happened and where it went.
Thinking about becoming wealthy is likely the furthest thing from your mind, and rightfully so. The fact is, most American consumers have at least one major hurdle that they have to get over in order to become wealthy, and many people have several. Six of those hurdles are below and, if you can identify yours, that’s the first step in getting over it and getting on your way to creating wealth. Enjoy.
Hurdle #1: Debt
One of the worst drains on any consumer’s financial success is debt. Unfortunately, it’s incredibly easy to get into debt but very difficult to get that debt paid off. In fact, it can take decades and cost you tens of thousands of dollars, money that could be growing in an IRA, 401(k) or other interests making device.
Hurdle #2: No Budget
Without a budget, even a basic one, in place to guide you financially, becoming wealthy is incredibly difficult. The reason is that, without a budget, you’ll have no idea of where your money is going and, without one, you won’t know where you’re wasting it.
Hurdle #3: You don’t Save
Saving money is a habit that very few American consumers have, unfortunately. At the very least you should have six months’ worth of income in an emergency savings account. Saving for your new home, college tuition for your children and retirement is also vitally important if you want to one day be wealthy.
Hurdle #4: You purchase things on Impulse
We’ve already spoken about debt and the reason that many people are in debt is because they purchase regularly things on impulse. If you grocery shop without a list, buy things you simply don’t need and don’t know how to negotiate the price of major purchases like a home or automobile, you’re probably spending much more money than necessary and definitely increasing your debt hurdle.
Hurdle #5: You live a wealthy person’s Lifestyle
If you always purchase the newest gadgets, automobiles, clothing and furniture, go on expensive vacations and spoil yourself silly, you simply won’t ever become wealthy because you won’t have any money left over. While it might give you some pleasure in the short run, in the long run wealth will elude you and you may end up living your retirement years in abject poverty. That might not be very much fun.
Hurdle #6: You don’t purchase Insurance
If you don’t have insurance for your health, your home or your life, or if you’re severely underinsured, you’re playing a dangerous game with your financial health and the financial health of your family too. Yes, it stinks to have to spend that money every month in for what basically amounts to nothing but, on the day that you actually need that insurance, you’ll be extremely glad you have it. If you suddenly passed away it won’t help you very much but, if you have a spouse and/or children, it will certainly help them.
It’s possible that you’re facing one or more of these 6 hurdles. If you are, and you don’t know how to get over them, send us an email or leave a comment and we’ll get back to you with answers and advice.