What if I told you that there were seven telltale signs that you will never be
rich would you want to know them in this video I will share with you seven signs
you will never be rich and if you're new to the channel then hit the subscribe
button below for more life-changing content
signed number one you focus too much on saving now don't get me wrong
saving money is super important because if you never save money then you will
never amass significant wealth but where poor people falter is focusing the bulk
of their attention on savings you see most people don't know how to increase
their income meaning that if they want to save more money they need to focus on
cutting costs instead the problem with this strategy is that you can only cut
costs so much you will always have expenses like housing groceries and
transportation which puts a limit on your saving potential however the rich
know that becoming wealthy requires you to split your focus between both saving
and earning believe it or not the average millionaire has seven different
streams of income meaning that they are just as if not more focused on making
cash than saving it these streams of income include earned income profit
income interest income dividend income rental income royalty income and capital
gains we have to realize is that your savings will always be capped by the
amount of money you make and when expenses are deducted this often leaves
little to be saved however earning more increases is ceiling and when combined
with solid saving practices makes the potential to build a wall it's seemingly
endless so if you want to build real wealth but just as much time into making
money as you do saving it sign number two you overspend as we just mentioned
in sign number one saving money is a key component of becoming rich and if you
spend more than you make you will never be rich unfortunately most people think
that making more money will solve their savings problem but what's most often
seen is that as income Rises soda spending for instance your standard
sedan may suffice when you're earning $50,000 a year but when you suddenly
find yourself earning double you may gravitate towards getting a luxury
vehicle ultimately hindering your saving progress this rise in spending can be
attributed to what's known as Parkinson's law Parkinson's law states
that work expands so as to fill the time available for its completion and in the
financial context it means that you will spend up to the
amount you have available and available doesn't just mean the money in your bank
which is why people go broke and then some by maxing out their credit cards
and lines of credit the reason this phenomenon takes place
is due to a lack of financial control unfortunately school teaches things like
how to find the slope of a line or how to write in cursive but it never teaches
you how to create and maintain a budget aka real life skills therefore unless
you have family or friends who bestow sound financial principles upon you then
you were almost destined to run into money management issues later in life
it's for this reason that there are people who are in lower incomes and can
still save a ton of money and on the flip side there are people who make
millions that have nothing in the bank sign number three you've accepted the
Paycheck lifestyle in life you can either make money by trading your time
or trading your value and for the average person trading time for money is
the preferred choice you see trading time for money in the
form of a salary or an hourly wage is much easier than exchanging value for
money and for many this is the only way they know how to make an income again
school never teaches you how to start a business but instead teaches you general
skills that you can further develop by going to college or university this goes
you learn in school mould you into a perfect employee which is why millions
of people clock in and out of their nine-to-five jobs each and every day and
don't get me wrong working for a paycheck is okay I understand that we
all have bills to pay and people to take care of but if you accept this lifestyle
then you will never be rich wealthy people understand that your employer
will always choose to make themselves rich over you and I know this to be true
because it happened to me a couple years ago I was working 50 plus hours a week
in a management consulting firm and from what I could tell I was doing a great
job however when salary increased time
rolled around I received an infuriatingly small raise which I voiced
to my manager he calmly said to me that if I don't accept the raise then someone
else will do my job for less and to just be happy with who raised I God it was at
this point that I knew the Paycheck lifestyle would never make me rich and
like I said wealthy people know that the only way to become extremely rich is to
start a business by running a business you get to leverage other people's
talents in time and can scale much more than you ever could as a single
employee and the best part is that you're the one who sets a price and not
your employer meaning that you can make the money you want as long as your
business is thriving and number four you don't invest your money chances are if
you don't invest your money then you will never be rich one of the most
effective ways to earn more money over time is investing it and the earlier you
start the better justtake Warren Buffett is an example
Buffett bought his first stock at age 11 and by strategically investing over the
course of many decades has become one of the wealthiest people on the planet but
it's not just billionaires who practice ongoing investing on average
millionaires invest 20% of their household income each and every year
making investing a significant part of their wealth accumulation strategy and
if you think that millionaires invest in exciting products you may be surprised
most millionaires invest in the same things as the average investor like a
Roth IRA and a 401k but also extend these investments to include things like
real estate properties and personal development I personally didn't start
investing at a young age because I thought investing was complicated but
over time I've come to realize that it's easier than you might expect simply
setting up an investing account and making monthly contributions to an index
fund or your retirement account is a great start to becoming richer than you
ever thought possible sign number five you don't challenge yourself if you
never step outside your comfort zone then you will never be rich
unfortunately most people settle into their paycheck lifestyle going to their
Monday and job each and every day and then waste away their nights watching
Netflix they strive to make every aspect of their life comfortable but the rich
seek the opposite with the rich know is that wealth creation starts where your
comfort zone ends this is why entrepreneurs especially the ones to
succeed thrive in uncertainty with many of them not knowing where their next
paycheck will come from take Jeff Bezos for example today's world's richest man
held many high-profile positions in major tech and investment companies in
his 20s but always felt like he was meant for something more while holding a
senior vice president role and making hundreds of thousands of dollars a year
Jeff decided to challenge himself and started a new book selling business
which we all now know as Amazon in my own life I make a point to challenge
myself once a week this can be done in the form of reading multiple books and
my lifts in the gym or icing a girl out on a date so take a look at your life
and if it seems like you were optimizing your life for comfort then you can kiss
becoming rich goodbye sign number six you don't have financial goals in the
same way that you can hit a target that doesn't exist not having financial goals
means that you will likely never become rich when trying to build real wealth
the process will be easier if you have a clear specific goal in place before
forming a financial plan for instance if you want to earn a million dollars your
first step would be to write down this goal and then detail the steps you need
to take in order to get there the steps would include earning your next
promotion picking up freelance work or creating an investment plan that will
compound to a million dollars over time unfortunately for poorer people this
first step can't even be done because when it comes to wealth they don't even
know what they want sure that will tell you that they want to make more money or
become wealthy but they don't even know what that truly means but if you ask a
rich person the same question he will tell you exactly what their goals are
how long will it take to achieve them and the precise steps it will take to do
so now while I'm not rich yet I have found that setting financial goals is
very effective for instance while in high school my goals during $80,000 a
year within five years of starting my career in order to do this I wrote down
this large goal and then detailed the following steps complete accounting
degree get CPA designation and obtain an $80,000 a year job and at age 27 the
school has finally achieved so if you want to increase your chances of
realizing financial success then setting achievable goals is a must sign number
seven you don't pay yourself first we've already established that saving money is
one half of the equation of becoming rich but unfortunately most people
hinder their ability to save by failing to pay themselves first you see when
they get paid they do show up money to their landlord credit card company the
government and many others which often results in them having little to nothing
left for themselves at month's end but is popularized by the book the richest
man in Babylon paying yourself first is one of the keys to becoming wealthy the
book recommends paying yourself 10 percent of your income every month
ensuring that your savings will grow over time one way to ensure you save
this 10% every month is this automated deductions from your pay most
employers will allow you to automatically deduct a portion of your
paycheck which can be rerouted into a separate savings account and I think
that this method is effective for two primary reasons first it allows you to
avoid having to think about saving money which means you can spend more time
working on your business or improving your skills that will increase your
income secondly it doesn't allow you to have direct access to the funds you are
stashing away which makes you significantly less likely to spend it
now if you begin to implement this method and feel like you can save more
than 10% then go right ahead the more you were able to deduct and ultimately
save the faster you will reach your financial goals and as you probably
guessed the rich practices have it religiously because if you aren't paying
yourself first then you are putting the financial goals of others before your
wrong thanks for watching if you want to go from the life you have to the life
you deserve then hit the subscribe button now