The term "rich" is highly subjective; the word conjures up different end goals for different people. For some, being rich is being happy, or being able to do what you love for a living, but financial adviser Jocelyn Black Hodes believes it means having financial freedom. Many of us are currently out of line with our financial objectives, but the good news is "it's never too late to become rich," as long as you're prepared to do something about it. Here are a few reasons you're not rich yet, from Money.
You're Not Rich, but You Spend Money Like a Millionaire
Who doesn't love to buy new things? From designer clothes to the finest wine, we all love to indulge in life's little luxuries. But are you spending money you have, or is it on credit? Hodes says it doesn't even have to be on expensive items. All those little shops still cost money, and if you consistently buy things you don't need, they add up, fast. And what about those $300 trips to Trader Joe's for a bottle of milk? We've all been there. If you keep spending what you don't have, then you can't "start building wealth." Hodes’s advice is to "spend like you’re poor, and you are much more likely to become rich."
You Haven't Planned for Financial Freedom
When you're making a cake, there is a clearly defined recipe to bake a beautiful dessert. Similarly, if you want a beautiful bank balance, then you have to take measured steps that include short-, mid-, and long-term goals. Or, as Hodes says, your dream of being rich will just be "an unattainable fantasy." So don't put off that savings account any longer, stop the excuses, stop overspending, and start saving. Let's remember the old saying commonly referred to in the financial industry: "Those who fail to plan plan to fail." Just the idea of financial planning can be daunting, but don't be intimidated. This is your future, remember? The first step is to start, either by doing it yourself or finding a financial professional. It can be as simple as writing down your goals, then posting that list where you can visualize it daily and sticking to it.
For more reasons you're not rich yet, visit Money.
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Do you agree with these reasons? What tips do you have to get rich? Share them below.