Need for more wealth is never ending. We want to be wealthy, free from stress, free from monthly rents, mortgages and wish to pursue our passion. But the irony is, only a few from the lot are able to achieve financial freedom. It’s not that we don’t work hard, we all do, but something is wrong somewhere and we don’t really handle it well. Why can’t we be wealthy in spite of the struggles that we go through each day even after years? We often wonder what is it that the wealthy do and we are not doing?
For becoming wealthy, you have to earn, save, invest, and thus multiply what you earn. We all know this, however there are some personality traits which are becoming boulders in our way to success. Today we will talk about some of these traits…
Procrastination: We fail because we do not start on time, we keep on waiting for the right time, not realizing that if we do not start, the probability of winning is zero. Most of us are in the ‘planning to invest’ stage since ages, but this planning never ends, and we seldom move on to the next stage of ‘executing’. We know that we have to invest to save tax, to meet our future goals, to build wealth, but there is something stopping us to actualize it. ‘“I’ll start a SIP this year”, and I say this each year’, is the problem.
Band Wagon: My neighbor is rich, I’ll do what he is doing; This is a common problem – each one is different in terms of their life stages, their goals, income-expense patterns, passion, expectations out of money, etc. So just mimicking a friend will lead us no where.
Lack of well framed goals: We want to achieve a lot, but if someone asks us what do you want to do in life, or how do you see yourself ten years down the line. Most of us would have vague answers, since our goals are not clear. We don’t know what we want to achieve and what we are working for. And no matter how much we struggle, working without a mission is like a ship without a helm. You’ll never reach the shore if you don’t have a direction in life. You should have well framed goals and the time horizon to achieve them, before investing for those goals.
Indecisive: Another major pit on our path to success is our inability to take decisions and to abide by them. At first, we are not able to decide whether to invest or not, then when to invest, and finally where to invest. And if at all we invest, we easily lose conviction in our decision and keep on changing our investment pattern, we sell what we have and buy something which our friend suggested. The cycle repeats in many forms and we end up wasting the time and efforts involved in making each investment. Result, we don’t end up anywhere.
Personal life: Not having a happy married or family life, can be one of the biggest contributors to misery. It destroys your goals, your self confidence, your plans and your inner peace. In order to be wealthy, you have to start from your home and you have to maintain harmony and understanding in your relationships and invest time, care, love and concern in people around you.
Lack of patience: We all want to make money and make it quick. Unfortunately, financial success is all about patience and time. Once you invest, you have to be patient and see it rise and fall, until it reaches a point where it serves your purpose. Often a fall in the investment pulls the rug from under our feet, and this state of panic leads to wrong investment decisions. We have to control our emotions when the times are bad and wait till the clouds roll by.
Some people just don’t want to take risk: Some people are adventurous, and invest in high risk high return products, and at times lose the principal as well. And there are some, who do not want to risk their money at all, even if their age and financial position allows them to take some risk, they won’t. And both extremes, do not make money. Risk and reward go hand in hand, you have to take risk, to build your wealth, but it should be calculated on the basis of financial backgrounds, goals and risk appetite.
Standard of living: We tend to imbibe the standard of living of our acquaintances. We buy things which we do not require and we cannot afford, in order to maintain a lifestyle and social status. A Levi’s jeans is equally good as a Diesel jeans and both serve the purpose, the reason spend Rs 16,000 on a Diesel jeans in the snob appeal it presents. If we cut down the expenses which are not necessary or stop paying a premium, not for quality but for brand value, we’ll be able to save a lot. And these accumulated savings, if invested wisely, will add to our better future.
The investors who are willing to overcome these personality traits will move towards their goal of becoming wealthy sooner than those who don’t.
Source: NJ Wealth