8 Reasons Why Most People Don’t Become Wealthy
How To Achieve Financial Success
Key Points:
- People want to become wealthy but don’t know how
- Most people don’t have wealthy role models
- You can become wealthy investing in financial education
- You can develop a millionaire mindset
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Do You Want To Be Wealthy?
If you ask people if they would like to be wealthy, most people would say “Yes, of course!” So why aren’t more people wealthy?
To be “wealthy,” you don’t have to live in a 10 bedroom mansion, nor drive a Ferrari, nor be a member of the exclusive country club.
You just have to be financially independent, relatively debt-free and not be living paycheck to paycheck.
Unfortunately, the reality is that 64% of Americans are living paycheck to paycheck according to a recent survey! How sad!
So, what’s the problem?
I believe that there are eight major reasons why more people do not become wealthy:
A Lack of Role Models
Most people don’t know how to become wealthy. By wealthy, I mean having income within the top 10%, and a lifestyle of freedom from financial worries.
Many of us don’t have role models that we can learn from about how to become financially successful. We have no one that we can follow. Personally, no one in my immediate family was wealthy.
Moreover, no one in my social circle was wealthy. On the contrary most of my family was low income, and most of my friends were middle class. Someone said, “Your income level is equivalent to that of the people you most associate with.” Without role models, it is difficult to believe that one can actually become wealthy.
Stuck in the Rat Race
Most people don’t know what it takes to become wealthy. First of all, most people don’t have a vehicle for becoming wealthy. They are stuck in the JOB mentality and the 40/40 Plan. That is work 40 hours per week for 40 years and end up with a Social Security check that barely pays the rent.
“Deep down they know they are trapped financially, and they lack the financial intelligence to escape from their office prison. They look forward to surviving fifteen more years when, at the age of 65, they can retire and then begin to live, on a leaner budget, of course.”- Increase Your Financial IQ by Robert Kyosaki
Never Make a Commitment
According to best-selling author and success expert, Brian Tracy, most people do not become wealthy because they fail to make a decision to become rich. They fall into the “someday isle” trap.
“Someday, I’ll take some financial classes.” “Someday I’ll attend one of those real estate seminars.” “Someday I’ll look for a business that has the potential to create significantly more income.”
Unfortunately, that someday never comes. It’s never the right time, and people procrastinate. Nothing ever changes!
Lack of Financial Literacy
Most people are not financially literate and don’t know what it will take to retire wealthy. They don’t know how to invest and often do not have the discipline to do so. They have no clue about 401k’s, Roth IRAs, Secured Notes, Market-Linked CD’s, or Fixed Indexed Annuities.
According to Robert Kyosaki, author of Rich Dad, Poor Dad, “without financial education, people cannot process information into useful knowledge. Without financial knowledge, people struggle financially.”
Aversion To Risk/Fear of Failure
It requires some risk to become wealthy. It’s not necessarily a lot of risk, but some risk.
For example, you have $40,000 dollars that you have saved up in the bank. You may have learned that buying real estate has made many people wealthy. You may even have friends whom you know have become wealthy through real estate.
However, you start thinking “It took me a long time to save $40,000 do I really need to risk it?” “What if it loses value?” “What if I get upside down, and I can’t make the payment?” So, what happens is that many people fail to pull the trigger.
The fear of loss is greater than the fear of not becoming wealthy so they never act on their ideas. It’s a normal reaction because our brains are designed to protect us from danger.
Most people who are wealthy have had to risk either time or money in order to get to their financial status. Check out my article,” 10 Smart Tips For Creating Personal and Financial Success With “Risk.”
Can’t Delay Gratification
People have an inability to delay gratification. They spend every penny now! They have to drive that car they can’t afford. They can’t budget, and can’t save money. Sooner or later they find themselves drowning in debt! They lack the Financial IQ for budgeting money, according to Robert Kyosaki.
Lack of Time Perspective
Most people can’t seem to plan very far ahead. They have difficulty planning for the future. There is a saying that goes, “dig your well before you need the water.”
Most people don’t prepare for the future. They live in the hear and now.
People Don’t Have a Wealth Mindset
Did you know that poor people think differently about money than middle class people? And, that middle class people think differently about money than rich people?
Each level of income is associated with a specific style of “mindset.” There are some basic principles and mind-sets that we can learn by studying people who ARE wealthy and just do what they are doing.
There is a “Millionaire Mindset” that can be learned by anyone, and will open the door to your financial success. Nothing is mysterious about earning a high income, developing more confidence and becoming a millionaire. You simply need to be committed to becoming a millionaire by investing in yourself and developing your mindset.
What’s holding you back from becoming wealthy?
Make a decision to become wealthy! Make a commitment to financial education! Success is waiting for you!
If you got value from this article, please share it with your social media network. I also look forward to reading your comments below. . .
To your success,
David C Figueroa- Success Coach
P.S. Learn the “3 Keys to Release Your Limiting Beliefs, Develop Unstoppable Confidence & Develop the Mindset of a Millionaire”
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About the Author David C Figueroa
David C Figueroa is a psychologist with over 35 years of experience teaching personal development. An awesome success coach, and internet marketer. Now retired, he has refocused his goals into helping ambitious men and women to create exceptional lives.
