Are you longing to know the 9 productivity mistakes that can affect your ability to be rich? Then this article is what you require.
I know you would love to become rich. But, are you prone to making some productivity mistakes that can affect your ability to be rich? If you are, then this article is for you. Keep reading!
I want you to know that making money is one thing and becoming rich is another thing. You can be making money, but you are not rich.
If you want to be rich, you must have the potential to manage your finances efficiently. And you stand at an advantage if you start learning how to manage your finances early.
Getting to know what might hurt your finances would help you adjust yourself to not fall for them.
This article would show you those productivity mistakes you must avoid, affecting your ability to be rich.
It is nice for you to enjoy the nice and beautiful things of life. But, while doing that, make sure that your spending nature doesn’t affect your ability to become rich.
Therefore, if you want to become rich, you have to be very attentive about how you spend. Never try to impress people by spending on luxurious houses and cars, or even designer’s clothes, shoes, wristwatches, and many more.
Your children must not attend the most expensive schools in your city. They can attend good schools that are less expensive.
Those outings you make with your family and friends, do you spend excessively? Are you planning to go for your vacation? You can make reservations in a moderate hotel, rather than booking the most expensive hotel in that city.
You have to be down to earth if you truly desire to become rich. Always endeavor to spend less than what you earn.
For you to be able to curb your excessive spending issue, I would advise that you have a budget.
Wow! You already have a budget! Do you stick to it? It is most times difficult for most people to stick to their budget.
But, I would give you a way to approach your budget not to spend excessively.
Make your budget to be fun, just like a game. Set new targets every week for yourself and endeavor to meet your target. For instance, if you are used to shopping every week, you can decide not to go shopping for a week and manage with what you have at home. Observe and see the outcome of that week. Just keep trying, and you will be amazed at how much you must have saved rather than spend.
So, you have to be productive and stop excessive spending if you want to become rich.
2)Reckless With Fees
You feel good whenever you go to an exotic restaurant and give yourself a treat, irrespective of the cost involved because you enjoyed the meal. But, how do you feel whenever you are charged for missed payments or overdraft fees? I guess not too good!
For you to be productive and eventually become rich, you have to be cautious with such charges. Of course, such charges can be stopped by you, if you do the right thing on time.
You have to pay close attention to every money that you have. You should know where your money is going at every point and make sure no penny gets wasted by unnecessary fees.
Your productivity to become rich will increase if you pay your bills early, avoid bounced checks and huge interest credit cards.
As a human, you are prone to forget to make a payment at the due time. Automation then becomes necessary.
So, I will advise you to set all your compulsory payments, ranging from credit cards, mortgage, insurance, and lots more on auto-pay because such extra fees for late payment can add up greatly to your gross net worth.
You have to carefully go through every statement for your bills, spot errors, or any unwarranted charges.
3)Minimizing Spending And Letting Go Of Value
Do you have a mindset that you have to cut costs at all times, irrespective of value, for you to become rich? It is cool for you to cut costs or minimize, but when you do it irrespective of value, then there is a problem.
For instance, you buy a less quality cloth of $20, instead of buying one for $100 that can last for a long time. If you need a car, instead of you, to buy a new car that can last you for a very long time, you go ahead to buy an old modeled car that can develop fault easily.
Initially, you might feel that you are saving money, buying cheap things with less value, but you will notice that you have just been wasting your resources in the long run.
What happens is that you end up spending more fixing or replacing those items because their quality negates how long you can use them.
To increase your productivity to become rich, you need to aim for items that can give you a longer-term use
To fix this, you have to change your mindset about the value of commodities. Always aim for those commodities that can deliver the best value.
4)Be Attentive To Figures
Are you the kind of person that can easily get bored with many numbers? If you are then, you have to readjust if you want to become rich.
Do not let yourself become disconnected from your earnings or what you see on your transactions or bank statements, or even the number of investments you have.
It is your obligation always to have a clear knowledge of your financial status every moment. If not, you might be losing your finances frequently without knowing.
To be productive and become rich, you have to make the details of your transactions, bank statements, and investments the best things you always want to hear.
Mind you, you do not need to be an account or an investment banker before you can pay attention to those bank statements, transactions, and investment figures. You have to start learning with the little finances you have.
When you pay attention to your finances, you will discover how to make the little in your bank account work for you and grow.
A good way to start is by being familiar with your present bank account details, how much income you make, and how much you spend. Then you start thinking of ways to make your financial figures improve.
If you think that investments will improve your financial figures, I will advise you to consult a financial adviser, listen to podcasts, and attend seminars.
5)One Income Flow Is Not Sufficient
How much do you earn monthly? Huge, I guess! No wonder you are just stuck and relying totally on that job or business of yours.
Well, it is cool to have a good-paying job or source of income. But, there is something I need you to think about. What if your high-paying job or that your huge source of income is terminated? What will rely on?
It is good to face reality because no matter how huge your income flow keeps coming in, you need another source.
This is perhaps one of the biggest productivity mistakes people make all the time. Productivity demands more than one source of income. In reality, you need to have multiple sources of income. That way, nothing shakes you even when one source goes down the drain.
Besides one other job, you should also consider investing to increase your income sources further.
When you create multiple income sources, you will be amazed by how far your incomes grow over time. By so doing, you will make your finances stronger.
So, if you want to be rich, drop the culture of having just one income source and cultivate the habit of having multiple streams of income.
6)Trust With Evidence
Are you the type of person that trusts people just because you know them or you like them, or your instinct feels right about them?
Let me share a story with you.
Some years ago, I met my old friend from high school, and he introduced me to a business. Without much questions, I gave him some cash to help me run it because I trusted him…
Well, not to bore you with much talk, the business failed, and I lost a huge amount of money.
I learned a great lesson, to never trust people without them showing me the evidence.
So, to be productive and eventually become rich, you need to down-play your feelings and emotions regarding your finances.
If your relative, friend, or neighbor, comes to share a business idea or an investment idea with you, don’t just dive into it. Ask them to show you evidence about that great investment or multi-million business.
Make sure you also speak to a financial advisor about it. Be practical and frugal about the details of your finances.
Never be moved by your instincts or feelings, be practical and get details of it before investing your finances.
If you are the kind of person, who can’t ask people close to you questions about a particular investment, ensure not to do business with them.
It is even better for you to make it as your policy never to indulge in any form of business with people close to you. By so doing, you save your relationship with them from getting spoilt and also secure your finances from falling into unsuitable investments.
Therefore, let evidence always overrule your feelings when it has to do with your finances.
7)Depending Solely On Saving And Neglecting Additional Income
You probably must have observed that you are spending too much and what you have in mind to do is save aggressively. Then you start cutting down on all your expenses, even the basic ones. You might run into problems.
Saving is good. That doesn’t mean that you should cancel all your family vacations or outings or stop your Netflix subscription just because you want to save every cent.
You have to change your mindset about saving and know that becoming rich doesn’t mean that you should not have fun or enjoy your life with family, all because you want to save.
While not think like the rich, that knew that they don’t only need to focus on saving to become rich, they also need to look for ways to add to their income and increase their financial strength.
When it comes to how much you can save? There are restrictions, but there are no restrictions to how much income you can make, as long as you strive harder to keep making more.
Let me show you an example of aggressive saving and the sweetness of earning more. Assuming you earn $5000 a month and you start saving about $3500 per month. You will notice that you might not be able to afford your basic needs. Instead of being so aggressive with saving, why not look for ways to get additional income.
Therefore, to be productive and become rich, you have to focus on earning more as you keep saving.
8)Failure To Adjust As Major Events Occur
In the course of building your finances, major events take place in your life. These events could be you getting married, or you have a baby, or your parent dies, and so on. But, no matter the huge event that occurs in your life, be it bad or good, you need always to learn how to adjust so that your finances don’t get affected.
However, for you to become rich, you have to know that every event that happens in your life can affect your finances either positively or negatively. Therefore, as events unfold in your life, you have to pay close attention to them not to hurt your finances so much.
For instance, if you had a joint account with your spouse, and after some years, you had a divorce. A divorce is a huge event, and failure to terminate the joint account means that your spouse would still be reaping from the account, which will hurt your finances so badly.
Cultivate a habit of paying closer attention to huge events that happen in your life to adjust properly so that your finances won’t get hurt.
Try not to allow huge life events to impact your finances heavily, except when necessary. Always strike a balance. Then, watch how your finances grow steadily.
9)Comparing Your Finances With Others
You might be familiar with the statistics that state that about 76% of working Americans survive by living paycheck to paycheck.
I want you to understand that you must not belong to that 76% of Americans. If you’ve got a clear view of your finances, you can step away from the norm. One way to do that is to avoid comparing your financial status with other people’s finances, it can limit you from becoming rich.
Also, avoid comparing your financial status to people that live in developing nations or nations facing starvation, telling yourself that you are doing better than them.
At first glance, it might look as if you are being contented with what you have, but on a deep and critical glance, you will notice that you are just trying to limit your ability to earn more and grow your finances.
You need to understand that another individual’s finances, no matter how big or small, would never pay your bills, take care of you when you retire, or even give you happiness.
Therefore, stop the comparison of your finances with others. Rather, stay motivated and double your hustle, and you will notice the rapid growth of your finances.
Now you know these productivity mistakes, ensure that you should strictly avoid these mistakes that can affect your ability to become rich.
Hope this article was helpful. Please, kindly share your thoughts below!