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10 Reasons You're Not Rich

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10 (More) Reasons You're Not Richby Jeffrey StrainWednesday, October 1, 2008provided byMany people assume they aren't rich because they don't earn enough money. If I only earned a little more, I could save and invest better, they say.The problem with that theory is they were probably making exactly the same argument before their last several raises. Becoming a millionaire has less to do with how much you make, it's how you treat money in your daily life.More from TheStreet.com: • A Defensive Strategy That Works • 2 Simple Steps to Future Wealth • We All Just Learned an Expensive Lesson The list of reasons you may not be rich doesn't end at 10. Caring what your neighbors think, not being patient, having bad habits, not having goals, not being prepared, trying to make a quick buck, relying on others to handle your money, investing in things you don't understand, being financially afraid and ignoring your finances.Here are 10 more possible reasons you aren't rich: You care what your car looks like: A car is a means of transportation to get from one place to another, but many people don't view it that way. Instead, they consider it a reflection of themselves and spend money every two years or so to impress others instead of driving the car for its entire useful life and investing the money saved. You feel entitlement: If you believe you deserve to live a certain lifestyle, have certain things and spend a certain amount before you have earned to live that way, you will have to borrow money. That large chunk of debt will keep you from building wealth. You lack diversification: There is a reason one of the oldest pieces of financial advice is to not keep all your eggs in a single basket. Having a diversified investment portfolio makes it much less likely that wealth will suddenly disappear.You started too late: The magic of compound interest works best over long periods of time. If you find you're always saying there will be time to save and invest in a couple more years, you'll wake up one day to find retirement is just around the corner and there is still nothing in your retirement account.You don't do what you enjoy: While your job doesn't necessarily need to be your dream job, you need to enjoy it. If you choose a job you don't like just for the money, you'll likely spend all that extra cash trying to relieve the stress of doing work you hate.You don't like to learn: You may have assumed that once you graduated from college, there was no need to study or learn. That attitude might be enough to get you your first job or keep you employed, but it will never make you rich. A willingness to learn to improve your career and finances are essential if you want to eventually become wealthy. You buy things you don't use: Take a look around your house, in the closets, basement, attic and garage and see if there are a lot of things you haven't used in the past year. If there are, chances are that all those things you purchased were wasted money that could have been used to increase your net worth. You don't understand value: You buy things for any number of reasons besides the value that the purchase brings to you. This is not limited to those who feel the need to buy the most expensive items, but can also apply to those who always purchase the cheapest goods. Rarely are either the best value, and it's only when you learn to purchase good value that you have money left over to invest for your future.Your house is too big: When you buy a house that is bigger than you can afford or need, you end up spending extra money on longer debt payments, increased taxes, higher upkeep and more things to fill it. Some people will try to argue that the increased value of the house makes it a good investment, but the truth is that unless you are willing to downgrade your living standards, which most people are not, it will never be a liquid asset or money that you can ever use and enjoy.You fail to take advantage of opportunities: There has probably been more than one occasion where you heard about someone who has made it big and thought to yourself, "I could have thought of that." There are plenty of opportunities if you have the will and determination to keep your eyes open.Copyrighted, TheStreet.Com. All rights reserved.

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Kim Newbie

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10 Steps To Retire A Millionaire by Lisa Smith (Contact Author | Biography)Email ArticlePrint CommentsHaving a million-dollar portfolio is a retirement dream for many people. Making that dream come true requires some serious effort. While success is never a sure thing, the 10 steps outlined below will go a long way toward helping you achieve your objective. 1. Set the GoalNobody plans to fail, but plenty of people fail to plan. It's a cliché, but it's true. "Plan" is the leading self-help advice from athletes, business moguls and everyday people who have achieved extraordinary goals. (Read Plan To Retire Rich for additional insight into how to develop a course of action to achieve your goals.)2. Start SavingIf you don't save, you'll never reach your goal. As obvious as this might seems, far too many people never even start to save. If your employer offers a 401(k) plan, enrolling in the plan is a great way to put your savings on autopilot. Simply sign up for the plan and contributions will be automatically taken out of your paycheck, increasing your savings and decreasing your immediate tax liability. If your employer offers to match your contributions up to a certain percentage, be sure to contribute enough to get the full match. It's like getting a guaranteed return on your investment. Finding the cash to stash may be a challenge, particularly when you're young, but don't let that stop you from pursuing future riches. (Read Invest On A Shoestring Budget for some additional tips on how to get started.)3. Get AggressiveStudies have shown that the majority of the returns generated by an investment are dictated by the asset-allocation decision. If you are looking to grow your wealth over time, fixed-income investments aren't likely to get the job done, and inflation can take a big chunk out of your savings. Investing in equities entails more risk, but is also statistically likely to lead to greater returns. For many of us, it's a risk we have to take if want to see our wealth grow. Asset-allocation strategies can help you learn how to make picking the right mix of securities the core of your investing strategy. (Achieving Optimal Asset Allocation can help you minimize risk while maximizing return. Asset Allocation: One Decision To Rule Them All explains how to treat all your investments as a single portfolio to maximize returns.)4. Prepare for Rainy DaysPart of long-term planning involves accepting the idea that setbacks will occur. If you are not prepared, these setbacks can put a stop to your savings efforts. While you can't avoid all of the bumps in the road, you can prepare in advance to mitigate the damage they can do. (Read Build Yourself An Emergency Fund to help structure your finances to avoid financial disaster.)5. Save MoreYour income should rise as time passes. You'll get raises, you'll change jobs, and maybe you'll get married and become a two-income family. Every time more cash comes in to your pocket, you should increase the amount that you save. The key to reaching your goal as quickly as possible is to save as much as you can. (Read why it might not be better for one spouse in a two-income family to leave work in Consider The Outcomes When Cutting An Income.)6.Watch Your SpendingVacations, car, kids and all of life's other expenses take a big chunk out of your paycheck. To maximize your savings, you need to minimize your spending. Buying a home you can afford and living a lifestyle that is below your means and not funded by credit cards are all necessities if you want to boost your savings. (The Beauty Of Budgeting can help you figure out how to make it to the end of the month before you run out of money.)7. Monitor Your PortfolioThere's no need to obsess over every movement of the Dow. Instead, check your portfolio once a year. Rebalance your asset allocation to keep on track with your plan. (Read Rebalance Your Portfolio To Stay On Track to learn more.) 8. Max Out Your OptionsTake advantage of every savings opportunity that comes your way. Make the maximum contribution to tax-deferred savings plans and then open up a taxable account too. Don't let any chance to save get away. (Read Not All Retirement Accounts Should Be Tax-Deferred to learn the advantages of a taxable account.)9. Catch-Up ContributionsWhen you reach age50, you are eligible to increase contributions to tax-deferred savings plans. Take advantage of this opportunity! (For more ways to save money and increase your nest egg for the fast-approaching golden years, read Retirement Savings Tips For 55- To 64-Year-Olds.)10. Have Patience"Get-rich-quick" schemes are usually just that - schemes. The power of compounding takes time, so invest early, invest often and accept that the road to riches is often long and slow. With that in mind, the sooner you get started, the better your odds of achieving your goals. (Read For IRAs, Time Is Money for a discussion of the value of compounding.)The Reality Of RetirementRetirement might seem far away, but it when it arrives nobody ever complains about having too much money. Some people even question whether a million dollars is enough. (To find out why this magic number has lost some of its luster as a retirement savings target and to temper your expectations regarding the lifestyle you will be able to afford during retirement, read Can You Retire On $1 Million?)That said, with lots of planning and discipline, you can reach your retirement goals and live a comfortable life after work.Read Managing Your Income During Retirement to find out how to make your hard-earned savings last as long as you need them to.by Lisa Smith, (Contact Author | Biography)

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Guest DN Braund

Guest DN Braund

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i'll never take tips on gettin rich from no mana path that has already been carved out will be congested because everyone will be doin the same sh*t, saturate whatever it is theyre doin then that wealth will trickle down and be distributed within the few because they didnt think to find their own path. also if all you do is follow and take your own risks ur limiting ur own success because you can only ever be as successful as however is showing you (assuming they are actually successful n its not jus another money spinner for them)i shall forever be doing my own thingif i fail i fail in my own right, not in a next mans shadow

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Trim Newbie

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i'll never take tips on gettin rich from no mana path that has already been carved out will be congested because everyone will be doin the same sh*t, saturate whatever it is theyre doin then that wealth will trickle down and be distributed within the few because they didnt think to find their own path. also if all you do is follow and take your own risks ur limiting ur own success because you can only ever be as successful as however is showing you (assuming they are actually successful n its not jus another money spinner for them)i shall forever be doing my own thingif i fail i fail in my own right, not in a next mans shadow
what he said
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carpedeum Newbie

carpedeum

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i'll never take tips on gettin rich from no mana path that has already been carved out will be congested because everyone will be doin the same sh*t, saturate whatever it is theyre doin then that wealth will trickle down and be distributed within the few because they didnt think to find their own path. also if all you do is follow and take your own risks ur limiting ur own success because you can only ever be as successful as however is showing you (assuming they are actually successful n its not jus another money spinner for them)i shall forever be doing my own thingif i fail i fail in my own right, not in a next mans shadow
u must have been high when u wrote that. does that really make sense to you? :huh:
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Dipset Newbie

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You buy things you don't use: Take a look around your house, in the closets, basement, attic and garage and see if there are a lot of things you haven't used in the past year. If there are, chances are that all those things you purchased were wasted money that could have been used to increase your net worth.
*looks around room alone*Oops:mellow:
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Bruno Di Gradi Newbie

Bruno Di Gradi

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1. I dont have a job2. im not even looking3. i rather f*ck chicks than make money **MY BIGGEST DOWNFALL**4. My sleeping times are f*cked5. I have no willpower6. I'm wasted7. I think to deep into things 8. I don't like being around loads of people so i cant work in bait places because ill end up punching someone up9. Because i wasn't born into wealth10. coz i never won the lottery

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