Top 3 Mistakes Rich People Don’t Make
Successful people have one thing in common, they all know how they earn their money, how they should spend it, and how they save some of it. These are the three most important thing to remember. Success may not only be about money, but it does have that huge contributing factor to it. Not all of them managed to get a degree, but they proved that as long as you are determined, passionate, and street-smart.
There are challenges in life that must be faced that cannot be taught at school, so you have to educate yourself every single day about life, and that involves handling money. To start you off, here are some of the common mistakes that successful people don’t do.
MISTAKE 1. Not saving enough for retirement
One of the most common mistakes most people do is that they are living their day to day lives, without thinking ahead. Most people believe in YOLO (You Only Live Once), that they do whatever they want to do, they buy everything they want and they don’t really worry about what might happen once they’re too old to work. Saving up for retirement is a huge deal that everyone must take care of. No matter how old you are, as long as you have a nice-paying job, you must start saving up for retirement.
Learn how to budget, and also spend less than you earn. Be like Sir John Templeton, he is known to be a legendary investor, who actually saved up 50% of his income and he became a billionaire. He definitely lived within this means. One of the problems with people nowadays is that they are always trying to show off especially in social media, whereas they would later realize it is totally for nothing.
MISTAKE 2. Credits and Loans
Another common mistake most successful people doesn’t do, is that they don’t pile up their debts and they don’t waste cash on fees and interests. Debt could totally ruin a person’s life, simply because that person doesn’t know how to handle their money the right way. If you cannot afford something, either don’t buy it or save up for it. It is not advisable to use credit cards and loans especially if your income is not stable and that you might get sacked anytime. Credit card interests are sometimes too high even if they would tell you it is lower than others, it would be too late for you to realize that you need to pay them so much just for the interest. If you don’t stop using credit cards and getting loans, you will forever be in debt.
MISTAKE 3. Taking foolish risks
Finally, taking foolish risks is so common, especially in the business world. It is a major fact that owning a business can definitely make you rich, but at the same time, it could also put you in debt for the rest of your life. A lot of people think that anyone can get into business, which is true, but not every business succeeds in the end. For instance, a man loves food, so he decided to open up a restaurant without going to business or culinary school, he made up his own menu and hired some staff members. It opened for a couple of weeks and people are no longer eating there. What went wrong could be the fact that the owner himself made the menu. Chefs must be the ones to make the menu and not just a person who loves food. Another factor could be the fact that he doesn’t know how to run a restaurant since all he knows is that he loves food. This is one huge example of taking foolish risks when it comes to money, it is never ideal because it is like gambling.
If you want to be successful, you should stay in school as much as you can. Be sure that you are going to the path that you think would make you happy. However, you must also learn that live too far from being easy, so you have to be wise in and out of the classroom. If you’re stuck in a job that you absolutely hate, then do something about it, just make sure that it will be for the better and not for the worst.
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