7 Reasons you will never be a millionare

 

The truth is that there are millions of millionaires in the world. Even more people are on track to become millionaires. However, for every future millionaire, millions of others will never come close to achieving financial freedom or a net worth anywhere near 1 million dollars.

I’d challenge you to ask yourself, are you on track to reach financial freedom or become a millionaire? Alternatively, are you sabotaging your financial future, making the 7 common financial mistakes that will keep you from ever building significant net worth?

Here are 7 Ways You Ensure You Never Become A Millionaire

REASON #1 You are Living Beyond Your Means

If you are making this money mistake, you are not alone. There are many people who try to finance their American dreams. They push their budget to the breaking point. Some live paycheck to paycheck, others fall into the costly trap of credit card debt. The best case scenario here is that you are not accumulating any wealth. The worst case is that you are setting yourself up for bankruptcy or having to work forever. Constantly drowning under an insurmountable pile of consumer debt, is stressful and costly.

Around 1/3 of US households carry credit card debt from month to month, according to the National Foundation of Credit Counseling. This could mean thousands upon thousands of dollars per year flushed down the toilet on crazy amounts of credit card interest. Does your financial plan consist of “faking it ‘till you make it?” Alternatively, “Keeping up with the Joneses?” The Joneses are probably as broke as you are, so not much to aspire to there, if you ask me.

REASON #2 You Don’t Have A Spending Plan

A spending plan is about managing your financial expectations to avoid unwelcome surprises, and so you will still have money left over for the better things in life. Think vacations, clothes, massages or even money for a babysitter.

First, take account of your major expenses that easily fit within your income. Secondly, your spending plan will pave the way for bigger splurge purchases – like a vacation or a new car, etc. If you do not have a spending plan, you will always just keep spending whatever is in your bank account on any given day. This will likely mean you never have the money necessary when the big-ticket bill comes due. Alternatively, even worse, you will run up sky-high credit card bills that you can’t pay off each month.

Without a spending plan, you will probably just keep paying out whatever is in your bank account and never have money when big ticket items (or college tuition for your kids, for that matter) jump onto your wish list. Or worse, these will end up on your credit card, accumulating disastrous amounts of interest.

REASON #3 You Chose the Wrong Career Path

If I had a nickel for every person, I knew who went to law school, but isn’t working as an attorney I would have another million bucks. Anyone, with any income, can become a millionaire. Bigger paychecks will increase the odds that you reach the status of having a million-dollar net worth.

For those who hate your job or career, it will show. This can result in slower career advancement over time. While it may be easier said than done, choosing the right career path that comes with the potential to earn enough to support your desired lifestyle and is something you actually enjoy is a major life quest for many. You many to balance taking a job you like (versus love) to get the money you need to bring more happiness is other parts of your life.

REASON #4 You Are Afraid of Investing

It will be nearly impossible for the typical worker to become a millionaire without at least doing some investing. A few movie stars and pro athletes will break this rule, but from there they will have trouble making their money last if it invested and grow over time. You may feel safe, stuffing your life saving under the mattress but you are losing money each and every day after inflation eats away at your purchasing power. If you want to achieve and maintain financial independence, you will need the help of compounding interest via some type of investing. While I will admit, there are risks associated with investing in anything from cryptocurrencies, stocks, bonds, ETFs, mutual funds and even buying a home. In my opinion, the risks of not investing are even greater. By not taking any investment risk you are likely guaranteeing what you are most afraid of which is running out of money in retirement. If you are relying on the income from your nine to five job to make you financially free, you are likely going to be disappointed. If you do not invest your money, it means that you plan to live only with your monthly salary and that you have no plans to retire until age 65. If you want to retire early or become financially independent, investing is the way to do it. I learned to invest my money wisely at a young age and the great thing about investing young is you will be able to archive financial freedom earlier in life. Now I have so many forms of income and I was able to retire early and more comfortably. Investment is the key to financial Sucess and living on just your paycheck alone is suicidal. Many consumers find investing to be intimidating.

Don't regret what you didn't do and focus on what you can do now. Maybe you missed some big opportunities like Amazon, Facebook and so on. That’s okay, new chances are coming up all the time. For example, right now Bitcoin and other cryptocurrencies are currently on the rise because another Bull run is around the corner and in Bitcoin Bull run market the price often goes up 10 times or more. This is a unique investment because irrespective of the amount you wish to start with, cryptocurrency and digital earnings has been established to be a very good means of generating passive income. It is potentially lucrative and it offers an impressive value proposition in that you can invest small amounts and make huge profits.

Among the different types of investments out there, there are probably a few that will work well for you. For me, cryptocurrency Investment is very profitable and it has been the best investment that I have engaged in without any form of regrets. I have property, wine, lots of different investments but crypto is by far my most income generating asset. I look at what I put in and there is no better return anywhere else.

Cryptocurrency represents the largest transfer of wealth our generation has ever seen. I love crypto investment because Cryptocurrencies offer an impressive value proposition in that you can invest small amounts and make huge profits, but that doesn’t mean there isn’t any risk involved. You may run at loss if you invest without the right knowledge. But following the right investment strategies will make you financially free in no time. While many have made fortunes investing in Bitcoin and other Crypto assets, many have also lost but that's because they invest without the right knowledge. The worse you could is invest in crypto while trying to figure everything out on your own. Learn to seek professional help because only experts can guide you on the best investment strategies for better profiting. This will help you avoid common pitfalls.

As the world of online learning evolves, there will be more opportunities to make affordable and profitable investments into your human capital; you just need to be ready to jump on the opportunity. I heard about cryptocurrencies I took the plunge and invested, made a substantial fortune and it had been a source of passive income for me over the years. At first i thought I had missed the boat with Bitcoin. I got in when I thought it must already be too late but i still made so much money and i'm still making more from crypto because it has become a source of passive income for me.

Note: You can also invest in things other than the cryptocurrency like stock market, real estate and so on. No matter what you do, do something! You can even put your money in a high-yield savings account to accrue interest until you’re ready to invest it. Make your money work for you.

REASON #5 You Are Not Saving Enough

Assuming you’ve overcome your irrational fear of the stock market and have crafted the perfect investment portfolio (or had the help of a fiduciary financial planner to create the best investment plan for your situation) if you don’t save enough move along the way you will never become a millionaire. After all, it is not what you make but what you keep. I know plenty or high-income folks without a pot to piss in – I do have the pleasure of living in a Beverly Hills zip code. On the flip side, I know plenty of people who have managed to accumulate a nice net worth on merely good incomes.

The saying is true; a penny saved is worth more than a penny earned. Remember, you don’t have to pay taxes on a penny saved.

Stop procrastinating; there will never be a better day to start saving than today. Even if you can only save a tiny amount, you will be better off than if you never started at all. I bet you will be surprised how you don’t even miss the money you are socking away. That tiny savings rate can grow over time into something substantial.

CASE STUDY 2*: Let’s say you just turned 40 and want to become a millionaire by the age of 70.

• If you earned 1% net of fees and taxes, you would need to save $2383 per month. That is $28,596 per year.
• Assuming a 10% net return, you would only need to save $442 per month.
• Remembers these numbers continue to grow the longer you wait. Just starting at 40 versus 22 translates into needing to save nearly six times as much per month. GET STARTED NOW! No matter your age, the sooner you get started, the better off you will be.

Reason #6 You Chose The Wrong Spouse

There are many financial benefits to being married. Choosing the wrong spouse will make your quest to become a millionaire much more difficult. If one spouse is a spender and the other is a saver- the spender tends to win out. When considering a life partner, don’t forget to take into account how you each think about money.

REASON #7 You Lack Purpose In Life

Those who have a purpose or passion in life make it easier on themselves to get up each and every morning. Over the years, I’ve observed that many of my happiest and most successful financial planning clients actually love what they do. The move through life with an extra spring in their steps.

It may be tempting to pick a job or career path based mostly on the salary, also consider the quality of life that it will end up providing for you and your loved ones. Follow your passions and dreams and money will follow, as the saying goes. At risk coming off all unicorns and rainbows, but I can honestly say I’ve seen real-life examples of this over and over again in my career helping people better lives through financial guidance.