“Everyone has a chance to get rich,” says self-made millionaire Steve Siebold. His comment is at odds with the popular notion that this is not the case.
But not everyone grabs the opportunity for wealth with both hands.
To find out if you’re doing everything you can to get rich, we’ll list the ten signs that you can’t get rich. You work hard, but not smart
At school we learn that by working hard you can become successful in life. “That’s not entirely true,” says financial advisor Ric Edelman.
“If hard work is all you do, you’ll never get rich,” he says. “Hard work alone will not save you enough money.”
Edelman indicates that for a future with enough money in the bank, smart working is just as necessary. One of his suggestions is to invest money in stocks or a pension fund. You have to make money yourself, is his adage. “You can do this without taking a big risk, without much effort and in little time,” he says.
2. You put too much emphasis on saving – not earning
Another way to work smart? Increase your income, not just the amount in your savings account.
Saving is crucial in building wealth, but if you focus too much on that, you neglect another component: making money. An aspect rich people focus on.
“The masses are so focused on discounts and bargains and live so frugally that they miss great opportunities,” Siebold writes.
You don’t have to suddenly throw all known saving methods overboard. But, Siebold advises to start thinking like the rich do. “Stop worrying about a lack of money and focus on how you can earn more.”
A common approach among millionaires is to create different sources of income and adopt smart savings habits.
3. You buy stuff you can’t afford
If you live too much, you will never get rich.
Even if you start saving more or if you get a big pay increase, don’t suddenly start living like a millionaire.
“I only bought my first expensive watch after my companies and investments provided a stable source of income,” writes self-made millionaire Grant Cardone on Entrepeneur. “I drove a simple Toyota Camry for a long time, even when I was already a millionaire. Be known for your work ethic, not the stuff you buy.”
4. You are satisfied with a stable salary
The average person chooses to be paid based on time worked – based on a stable salary or an hourly rate.“The really rich know that entrepreneurship is the path to wealth.”
As the elite continue to set up businesses and grow capital, “the masses are earning a life of financial mediocrity by sticking to steady jobs with average pay and annual pay increases,” Siebod explains.
5. You are not investing yet
One of the most efficient ways to make more money in the long run is to invest. The sooner you start, the better.
“On average, millionaires invest twenty percent of their income every year. Their wealth is measured not by what they earn annually, but by what they have saved and invested over the years,” writes Ramit Sethi in his bestseller I Will Teach You to Be Rich.
You don’t need to be an expert in personal finance or familiar with economic jargon to start investing. You don’t need a wealthy family to get rich either. You don’t even need a generous salary.
In fact, start investing in your pension or a low-threshold fund and in the long run you will achieve great profits.
6. You’re chasing other people’s dreams, not yours
If you want to be successful, you have to love what you do. That means identifying your passion and pursuing that passion.
Too many people make the mistake of wanting to live other people’s dreams, like their parents’, says Thomas C. Corley, who spent five years researching self-made millionaires.
“If you’re chasing someone else’s dreams, you may end up feeling miserable at some point,” he writes in Change Your Habits, Change Your Life. “You can see it in your performance. You just simply don’t have the passion to be successful.”
7. You rarely get out of your comfort zone
If you want to build a fortune, be successful, or if you want to have an edge in life, get used to uncertainty and awkward situations.
Rich people like uncertainty.
“Emotional and physical ease is the main goal of the average mindset,” Siebold writes. “Really great thinkers discover at a young age that becoming a millionaire isn’t easy and that the desire for convenience can be disastrous. They teach themselves to thrive in an environment full of uncertainty.”
Rich people logically learn that they have to overcome fears in getting rich and that taking calculated risks is the key to achieving success.
8.It makes the process towards wealth a lot easier and more pleasant.
Do you want to buy a house? Do you want to live abroad? On vacation every month? A carefree old age? Getting rich is not a means to achieve your goals. Write those goals down.
Rich people commit to making a fortune. It takes concentration, knowledge, courage and a lot of effort, but it is all possible if you have a clear goal in mind, emphasizes the self-made millionaire T. Harv Eker.
“The main reason why most people don’t reach their goals is that they simply don’t know what they want to achieve. Rich people know all too well that they want a large fortune,” he says.
9. You spend your money first and save what’s left
If you want to get rich, pay yourself first.
“What most people do when they earn a dollar? Pay other people first,” writes self-made millionaire David Bach in The Automatic Millionaire. “They pay the landlord, the phone company, the government, etc.”
Instead of paying first and saving what’s left, do it the other way around. Take an hourly wage per day and put it in a savings account. Automate that action, Bach emphasizes. Then it will cost you less time and effort.
10. You believe that getting rich is not for you
“The average person thinks that being rich is only for people who are lucky,” Siebold writes. “It is different. In this capitalist world, everyone is entitled to wealth, as long as you are of value to others.”
Ask yourself. “Why not me?” encourages Siebold. Then think big. Rich people set the bar high. Why not 1 million?