Becoming a millionaire isn’t nearly the far-off, almost unattainable goal it once was, and the number of millionaires is growing, but at the same time, it’s also something many might not achieve. It’s not usually because of a lack of talent or ambition, but rather lacking an understanding of how to get there the right way.
Millionaires tend to follow similar blueprints, even if their professions or the ways the earn money are entirely different from one another.
Some of the primary reasons not everyone makes it to millionaire status, regardless of their income, are listed below.
Relying On One Source of Income
Grant Cardone, an international sales expert and Entreprenuer.com contributor, wrote an article on the eight money mistakes many people make when they’re trying to build wealth. In his opinion, one of those top mistakes is relying on one source of income. This is something many Americans learned the potential pitfalls of first-hand during the Great Recession. Even if they were making hundreds of thousands of dollars a year, if they lost their job, everything was lost. Instead, financial experts like Cardone recommend people have multiple sources of income at any one time. These revenue sources should be fully independent of the primary way you earn your income.
A Fear of Risk
Penny stock trading expert Timothy Sykes’ popular “Millionaire Challenge,” features the tagline “the greatest risk is not taking action.” That’s something most financial professionals and wealth-building experts can agree on. So many people are terrified of risk, but that fear holds them back from being able to grow their money. Simply stashing unused money in a low-yielding savings account isn’t even going to be enough to combat inflation, much less build your wealth enough to reach millionaire status.
You love the idea of investing or finding new streams of revenue, but it always seems like you can do it tomorrow. Unfortunately, tomorrow quickly becomes today. It’s important to take immediate action because procrastination is going to lead to you nowhere besides financial stagnation. There’s never going to be a better time to start creating new wealth than the present, so don’t let the idea that you have plenty of time hold you back.
Poor Spending Habits
Poor spending habits don’t necessarily mean that you’re shelling out tens of thousands of dollars on luxury cars. Instead, many people don’t achieve the wealth they want because of their daily spending habits. They may be spending money on what seems like relatively small things, but those little things not only add up quickly. They also signify a sense of impatience and an inability to delay gratification, both of which can spell disaster if your ultimate goal is to build wealth. It’s important to be able to put off some of the things you want in the short-term, and take a more long-term perspective on your finances and your life.
Undoubtedly, becoming a millionaire is a challenge, but not necessarily an unattainable one. It requires dedication, determination and self-discipline, and also the ability to avoid common mistakes like the ones listed above.