3 Reasons why people do not get ahead
Written by R. A., Stewart
We have heard the term “Cost of living crisis” a lot in the past few years with people struggling to make ends meet. The government is often made the scapegoat for all of this; whether it is the government’s fault or not, taking responsibility for your own money management and the choices you have made is the only way you will get ahead in life. There are three main reasons why people do not get ahead. Each one is explained further. I have written this with the intention of not mincing my words.
- Lack of vision
Life is for living but it is not cheap. Whether you are buying a car, enrolling for further information, getting married, having kids, taking out a mortgage, or retiring, being prepared financially for all of life’s stages requires saving. Having the vision to prepare for all of this will enable you to cope with the expense. A person without vision will spend their money as if there is no tomorrow. Living from one payday till the next without any thought for the future. This kind of attitude will lead you to the poorhouse.
- Lack of planning
“If you fail to plan you plan to fail,” as the saying goes. Making a plan for your money and putting it to work for you requires vision and discipline. It will help you to get the most out of your money. You need to decide what you are saving for and deposit that money in the appropriate account. A person without a plan is like a person on a life raft; they will go wherever the waves take them. They will spend everything they have then when some unexpected bill crops up they will borrow the money and put it on the credit card. There is a cost to this and it is called interest.
- Lack of financial literacy
This has to be the number one reason why people have poor financial outcomes. A person with no financial literacy will make poor financial choices which eventually lead to poverty. Getting paid more is not a solution to poor money management skills. Getting financial education is easy and you don’t have to spend a fortune on books; your local library will have books on budgeting and investing. You will be able to find such books at your local charity store for a couple of dollars.
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