Most people have lack of desire to reach wealth. That is why they get financial failure.
Some people cannot reach wealth not because their parent poor. Some kid who have poor parent become a millionaire. There are some reasons why people fail?
The attitude may cause the financial failure.
1. Lack of knowledge
Only few people know about financial. They supposedly learn about finance that is very important for everyone. There are so many books, newspaper, website, blog and others. People who do not want to learn finance must suffer lack of desire.
2. Has no financial goals
Some people are difficult to set financial goals and they have no financial goal. They have no financial goals because they have not learned about it.
3. Use time
Time is your life. Most people do not realize it. It is a time you should work hard and do not postpone it. Do what can you do today and improve what you have done.
4. Lack of foresight
Some people or more specially, most people has no vision for the future. Lack of foresight makes you lazy. You are not motivated to work hard to reach the target. Set the high target so you can work hard.
5. Too much debt
The debt can bring you to bankrupt or financial failure. Some people are careless to borrow money from usurer who charges high interest. They should pay off the debt immediately if they have money.
Buy anything with cash rather than credit card. The credit card is also debt that you have to pay last month.
Without disciplined, people will not reach the wealth. They are not disciplined in spending. For instance, they spend $5000 in a month whereas they have allocated it for $4000 only.
If we work for employer, we should discipline so they can pay our salary and the bonus. A Freelancer should be more disciplined than the employee
7. Inadequate protection
Some people do not think about protection due they have so much money. They think they can overcome any situation including bad economic situation. When the crisis occurs, the asset value decline and the liability increase.
Protection is not only insurance but also portfolio. The insurance might not pat our claim when we need it. On the other hand, the portfolio can protect us in crisis. The clever people do not invest at stock only but they invest at various investments such as precious metal, ETF, mutual fund and others.
Published in: Personal Finance