10 Reasons Why You’ll Never Be Rich

I here’s an interesting maxim about how long wealth actually stays with a person and their descendants. The saying is three generations tops: one to make it, one to spend it, and the third to blow it.

Of course, there are exceptions to this rule, but have you ever sat down and seriously thought about wealth and what it means to you? Or do you figure “What the heck, I’ve always been broke, my forefathers were broke; it’s generational” – it’s just a rite of passage of sorts. If you feel that wealth is out of your reach, you aren’t alone. Below are a few reasons why many people do not make it:

If you have a ferocious appetite for spending beyond your means, you’re not alone. Blowing all your money each month is not a realistic pathway to wealth. Start tracking where your money goes each month, check where you can cut back, and create a ‘realistic’ budget that allows you to pay your bills and invest in a retirement account or an emergency fund.

Welcome to the club! Saving should become a priority if you want to accumulate wealth. Start with an emergency fund. Once your emergency fund is substantial, you can redirect small amounts toward other goals like purchasing a home or paying for college.

Certain debts are a precursor to financial success, like purchasing real estate or starting a business; however, a high-interest credit card balance is not. Pay off credit cards with the highest rates first.

Without a definite, clearly defined plan, becoming rich will seem like an unbelievable dream. This alone will solidify your excuses for overspending and not saving. As the saying goes “Those who fail to plan, plan to fail.” Putting together a financial plan may seem tedious, but it doesn’t have to be, and you can get used to it.

Experts say you need at least six months of income saved in case of an emergency. Life is tricky, and not having some type of safety net can turn a comfortable situation into a disaster.

Time is slipping by. Just like starting an exercise routine, the most difficult part about saving is getting started. Even if you have debt, a small income, or many expenses, you can save something, even if it’s only a small amount.

“I don’t earn enough money”; “Life is too expensive”; “It’s hopeless, I’ll never get out of debt.” Have you uttered any of these statements before, or perhaps all of them? Old habits die hard; however, as long as you do nothing to change, nothing will change. Stop complaining and making excuses. Instead, take responsibility for your non-productive habits and concentrate on how to change them – and then do it!

It’s no fun getting serious and thinking about retirement and all that stuff. Nonetheless, eventually it has to be done. The problem is that impulsive and unregulated spending leads to debt… period! Do yourself a big favour: Get rid of the ‘buy now, worry later’ attitude, and switch to a ‘save now, get rich later’ way of thinking.

You might get lucky by wagering all your money on one type of investment. Just like you might get lucky winning the lottery. But that’s not a strategy to live by, or for getting rich. Putting all your money in one place is not advised because it puts you at too much risk. Your investment portfolio should include multiple investments with varied levels of risk and liquidity.

You may be one of those people who believe that somehow something will come along and save you, so why bother with saving or trying to get out of debt? Maybe you will get lucky and land a fantastic job, receive a big pay raise, inherit money, hit the lottery, or whatever! But ‘whatever’ won’t cut it if you really want to become rich. Yes, life is uncertain. No one knows what will, or will not, actually happen; therefore, why not focus on what you can control today? Get it together now and save yourself, in case someone or something else won’t.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.