Everyone reading this post can become a millionaire in their lifetime. I’m sure there are a couple of people out there who will be able to prove me wrong, but the fact is that the vast majority of people could become millionaires. It is also true that the vast majority won’t.
The reason they will not become millionaires isn’t because of their income levels. It isn’t because of things that happen to them. It is because of their choices. It is said that luck comes to those who plan. Likewise, wealth comes to those who follow a plan.
Listed here are the top reasons that people don’t become millionaires. This is not to say that you can’t do a few of these things and not succeed. It is just to say that the less of these you do, the better your chances are of becoming wealthy.
1. Eating more than one or two meals out each week.
2. Buying new cars.
3. Taking out student loans that cannot be, (and are not) paid off in less than a few years.
4. Using credit cards (even if the balances are paid in full each month).
5. Not putting money away each month.
6. Not having a monthly budget.
7. Putting money in a savings account rather than investing it in equities.
8. Not having an emergency fund.
9. Changing jobs and starting new careers frequently rather than building experience with a company and depth in a field.
10. Not getting involved with professional and service organizations.
11. Having a mortgage that is longer than 15 years and/or which is more than 25% of one’s take-home pay.
12. Not having term life insurance (for surviving spouse).
13. Not giving more in value to your boss and your customers than you receive in payment.
14. Marrying badly and getting divorced.
15. Taking loans against or pulling money out of a retirement account.
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Disclaimer: This blog is not meant to give financial planning or tax advice. It gives general information on investment strategy, picking stocks, and generally managing money to build wealth. It is not a solicitation to buy or sell stocks or any security. Financial planning advice should be sought from a certified financial planner, which the author is not. Tax advice should be sought from a CPA. All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.