Lack of Knowledge in Saving
A strong indicator of effective money management is having sufficient savings to sustain oneself during unexpected emergencies.
Borrowing money in unforeseen circumstances is a sign of poor financial management and reduces the likelihood of becoming wealthy.
Follow the advice of Warren Buffett to build your savings: Spend what is left after saving, rather than saving what is left after spending.
Seeking Joy through Credit Cards
Financing a vacation through a credit card indicates difficulties in managing one’s finances. While rest and relaxation are important, accumulating debt for a trip is unwise as it hinders the ability to save for future vacations.
Former US President Thomas Jefferson cautioned against spending money that has not yet been earned, even in a time without credit cards and significant debts.
Regularly Wasting Excess Food
Consistently discarding leftover food demonstrates poor food management and results in wastage. Essentially, money is being thrown away.
Fear of Taking Risks
Avoiding risks altogether in hopes of a safe and stable life will cause one to miss out on opportunities to create wealth. However, this does not mean engaging in reckless spending on lottery tickets or volatile stocks.
It is advisable to strike a balance between caution and seizing opportunities.
Lack of Continuous Learning
The world is evolving rapidly, and failing to invest time and money into improving professional skills will limit one’s income and potential wealth-building opportunities.
Engaging in Unproductive Leisure
Author and salesperson Zig Ziglar once observed that wealthy individuals possess extensive libraries and modest televisions, while the reverse is true for those who struggle financially.
Certain activities, like excessive gaming, mindless scrolling on social media, and frequenting bars, may provide temporary entertainment but ultimately waste valuable time.
Excessive Focus on Household Chores
While cleaning and cooking are essential, dedicating excessive time to these activities is a mistake. With only 24 hours in a day and limited free time, it is essential to allocate that time wisely.
Investing free time in learning about finance and seeking profitable investment opportunities is more advantageous than spending it on mundane household chores.
Neglecting Additional Income Opportunities
While not everyone has the opportunity to switch jobs and earn extra money, individuals in the same profession can still have vastly different salaries.
If one’s salary does not align with the highest in their professional field, it may indicate a lack of true effort.
CEOs of large companies often increase salaries for employees who continuously strive for improvement.
Lack of Financial Control
Entrepreneur Jaime Tardy believes that individuals who attain wealth effectively manage their money.
Disregarding the amount of money in one’s wallet after making purchases hampers the ability to accumulate wealth.
To achieve wealth, it is crucial to track income and expenses, spend reasonably, and create capital for profitable investments.
Sharing Wealth-Building Plans with Everyone
Sharing plans to become wealthier should only be done with individuals who will support and encourage. However, it is rare to find many people who provide genuine support.
Most people will perceive plans as unrealistic or far-fetched when presenting business ideas or strategies for wealth creation.
Nam Phuong (According to Bright Side)