11 REASONS WHY YOU WILL NEVER BE RICH!

A person becomes Rich or Poor according to all those steps, he had taken in the early stage of his life.

Here are 11 REASONS WHY YOU WILL NEVER BE RICH. Read the article thoroughly to know what is the difference between the thinking of a Rich Person and Poor Person.

   

Believing only in Hard Work:

Do you believe that hard work can make people rich?

If yes, then I am going to prove you wrong.

Think of a person who works as a Coal digger in Mines. Of course, he does a tremendous amount of work.

If only hard work has made people rich, then he would have been among the richest people of the planet.

Is he? Both you and I know the answer.

So now what? You need to do smart work. That is it.

Am I telling you to run away from Hard Work?

No, not at all. I am just telling you to do hard work but in smarter way.

You cannot just find a way to do a work smartly. You need to do hard work for that. As you keep on doing hard work, you will keep on finding ways to do it smartly.

Single Source of Income:

Jobs are one of the most common place where you are generally forced to work enormously hard. 

And if you are a kind of person, who thinks that getting a job is well enough to be a wealthy man then have a look at the calculations below.

Let us consider a hypothetical situation in which you are earning $1000 per hour of work that you do. 

Then the maximum amount that you can earn in a day is $24000, by working only 24 hours of a day out of 24 hours you get in a day.

Obviously this is not practical thing to do.

See, what basically happens in this scenario is that you are getting paid for the amount of time you work. And time is limited.

"If you don't find a way to earn money while yo sleep then you will spend working for your whole life." This is one of the most famous quote by Warren Buffet.

So what you need to do is that you have find ways through which you can earn even while you are sleeping.

Do you know that on average a wealthy person has 7 different sources of income.

So, the point lies here. You must find multiple sources of income and most of them should be passive [as you have only 24 active hours a day]. This will help you to earn even without working.

‌No Steps For Self Development:

A person can never attain enough knowledge that there is nothing left for him to read about. 

One thing that is common among all the big and well known people is their continuous reading habit to develop themselves.

And if you are not taking any steps to improve yourself then you can never ever be rich.

Reading is one of the easiest and cheapest methods of self-development. So if you are not reading anything then grab a book and start reading it.

‌Not Saving Enough Money:

Not only earning money but saving money is also a huge factor to become wealthy.

I am quite sure you must have heard of any movie star or sportsperson who got rich but all sudden his money got exhausted and now he is struggling for livelihood.

This is majorly because of poor management of money in which saving money plays an important role.

Many people just give an excuse that they are not earning enough to save, or they are too young to save. Are you one of them?

My reply to these kinds of people is that if you are not saving money now and giving excuse [to yourself]. Then most probably you are never going to start saving or going to start too late.

Other than this as along with time, your income will increase, your expense will also increase.

Also, as your income increases, your lifestyle will also change according to your income and you will have to maintain it. Otherwise, you will be the odd one out.

So, the fact is that you are never going to earn enough to save. Unless you want to save, you can’t save.

Ideal saving is 20% of your income.

Believe in yourself and start saving. You may face some trouble in start saving regularly but can be achieved easily.

You Cannot Hold Money with You:

Do you control your spending?

No. Then you must have gone through a period [especially during the end of the month] when you have a scarcity of money.

Do you have a problem of overspending i.e., spending more money than what you have planned for?

If yes, then it is a serious issue and it needs to be taken care of, in a proper manner. This problem is a sign of lack of seriousness of the [planned] budget.

If you are not following your [self] planned budget, then you are at risk of falling into the trap of debt, debt and only debt.

So, what needs to be done to escape from the problem of overspending [spending more than planned budget]?

While preparing the budget first thing that needs to be considered is the flexibility of the budget.

By flexible, I do not mean that every day your budget needs to be modified and changed. But I mean that budget should be less strict.

That is a budget should not have a column like I will spend $X on Pizza and $Y on Cake in a month. This kind of budget is hectic and most probably you will end up going crazy following this budget.

Instead, a budget should be like “I am going to spend $Z on outdoor eating this month”.

One more thing, you must make up your mind that whatever you are going to write down on the budget, it should be followed, no matter whatever it takes.

Using Debt to buy Liabilities:

Buying up the things that you can’t afford is one of the most [self] disastrous things on the planet.

When you buy liabilities on credit [debt] it is the worst use of credit. Of course, there are some liabilities that everyone has, but that should be fulfilled on your own money, not on debt.

Credit [debt] is for buying assets.

So, one should not use a credit card?

Having a credit card is another thing. I also have one.

Credit card is like taking money from a friend which is to be returned next month. There are many benefits of using a credit card if used properly.

But buying liabilities [on credit] that you cannot afford, cannot be justified in any case. This habit will just keep pulling you down.

Living Risk free:

For the sake of security, many people just maintain a huge distance from any kind of risk. They just don’t know that maintaining a distance from risk is even greater risk.

Mr Vivek Bindra, founder and CEO BadaBusiness.com has once told that “Taking no risk is the greatest risk”.

So, with all this talk, do you want to take the risk?

Wait for a moment before answering the above question.

M S Dhoni, an Indian cricketer and a famous personality [who is known for taking risk at crucial moments] have once told in an interview that “If you want to get success in any field then you will have to take risk, but at the same time you need to be calculated”.

Now the decision is up to you. You decide to take the risk or not.

Only Saving not Investing:

I think that you know very well that saving money is important, but it is not enough.

Why?

Let me tell you!

Do you know about inflation? It is the rate at which the price of any commodity increases per year.

In India, the rate of inflation is about 6% per annum. So, the value of money is depreciating at 6% per annum in India.

So, to maintain the value of money a minimum 6% interest is required. This can only be done by investing.

So, invest your money properly to beat inflation.

‌Running Away from Your Responsibilities:

There is a kind of people who are always busy in maintaining a distance from responsibilities. These people can do nothing with their lives.

To succeed in life, it is must, to know your responsibilities and fulfil it generously.

Now, there is another kind of people who know their responsibilities very well and try a little bit to fulfill it too.

These are the first ones who appear to take credit when success is there.  But when there is a failure, they just refuse to take responsibility.

M S Dhoni a well-known cricketer [Captain, Batsman, Keeper] who had seen many success and failures during his career.

Dhoni had once said in an interview that, “If you are taking responsibility for success, then it is your foremost responsibility is to accept failures”.

See what happens when you accept your mistake [at the time of failures] without blaming others, it helps in the creation of a room for improvisation.

When you learn from every mistake, you are creating a path of success and financial stability.

‌Blaming Others:

Do you blame other people or Government for what you were not able to achieve?

Then you, my friend, believe me, you will not be able to achieve anything in your life as there is always a chance of blaming others.

See, when you accept your fault, it not only helps to maintain good relations with other [as you are not blaming someone else] but you will also try to work so that the same mistake will not get repeated.

By accepting your mistakes, you are giving yourself a chance to improve. And my improving yourself day after day, you will lead to a great life.

‌You Justify That Money Is Not Important:

Many people justify that money is not important by saying “Money cannot buy everything”.

Yes, the above statement is true but what about this statement?

“Money cannot buy everything, but money can buy many things”.

You believe it or not, but money is indeed an integral part of life. And rich people have understood at an early stage of life.

Signing off! Sourav Kumar.

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