Financial Mistakes Rich People Never Make

There are some financial mistakes that rich people never make. The journey in becoming rich will require you to make a few mental changes in your behaviors. Once you make these adjustments, you will begin to see the progress as your create more positive results in your life. Acquiring wealth is a great goal, but who you become in the process is even more worthwhile.

Here are the financial mistakes rich people never make:

1. Buying on Credit

Many people purchase the objects they can’t afford with money, they don’t have to impress people they don’t like. This tragedy decimates many people, leaving them with a hopeless feeling when they repay their high-interest loans. If a person hopes to become rich, they will use their credit cards for growing and promoting their business, not funding personal expenditures.

2. Mortgaging a Home

Some “rich” people mortgage their homes, but they aren’t really rich. Mortgaging your home leads to an endless battle of re-financing, bill-paying, and inflation. When you mortgage a home, you’re likely to pay twice as much asthe original price. Rich people will rent until they can buy their house with straight cash.

3. Traditional Retirements

Our retirement system is a joke that must be avoid by those who want to become rich. If you’re depending on mutual funds, 401(k), and certain life-insurance policies, you’ll do better boarding the Titanic. Plus, if you’re saving money to enjoy it for your sixties, that’s like saving up sex for retirement. Instead, build your fortune when you are young.

4. Not Saving

Most people blow their money on miscellaneous goods. When they see ‘X’ amount in their bank account, they automatically think of what they need and purchase it immediately. However, this impulsive behavior must be eliminated. Rich people save at least 10 percent of what they earn and rarely take out personal loans for themselves, even if they think they need it.

5. Lack of Enjoyment

Consumerism is funny. During 50 weeks at work, people think about vacations and when they finally get their two weeks, they only think about work. The truth about becoming rich is that you must enjoy the money that you already have, whether it’s $10 or $100. Your money will only expand if you enjoy it and think about how you can enjoy it more. You’ll always get more of what you enjoy.

 

Source : entrepreneur

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