Many of us earn money. But all earners do not become or stay rich. We look at factors responsible for this.
Delay regarding learning and honing financial skills:
Many of us desire money. However we are not ready to learn how to earn better, invest better etc. The more you procrastinate the lower the probability of becoming rich.
Spending more than you earn:
It is important to know your total earnings. Some people live beyond their income and have no savings. They are always having debts. Make a financial budget. Live within your means and save as much as you can.
Misuse of credit cards:
People use credit cards to buy items which either they don't need or cannot afford. The high repayment rate through credit cards leads to a huge loss of money. Either dump your credit card or only use it in emergencies.
Ignorance of how to invest:
Buying cheap shares when the market is down, buying mutual funds and selling it after few years is not genuine investing. To maximize returns on your money, it is imperative to learn how to invest and also to invest well. It is recommended to hire the services of investment experts to gain control of and maximize your finances.
Harmful financial habits:
Too much drinking, gambling, experimenting in the stock market can cause a lot of financial damage. It is better to avoid addictions to gain control of your hard earned money.
Offering loans to all and sundry:
Some people give loans without considering their present finacial situation and the ability or willingness of the loan taker to repay. If the loans are not repaid they fall in a financial trap.
Laziness in paying off bills:
Some people wait till the last minute to pay due bills. As a result they may defaut on payments and have to bar a late penalty charge.
Ignorance of the amount of money in savings bank accounts:
This could results in people’s cheques bouncing as they don’t know the exact bank balance.