Created by TheWealthIncreaser.com on 01/19/2018
Learn about 5 common wealth building mistakes and why you need to avoid making them…
Over the years TheWealthIncreaser.com has seen many consumers achieve major success. In addition, TheWealthIncreaser.com has seen many who made mistakes along the way. In this discussion TheWealthIncreaser.com will show you 5 common wealth building mistakes so that you can “avoid them” and achieve success in a timelier manner.
1. Not beginning with the end in mind
Whether a home purchase, pursuing your retirement number, purchasing your new car and many other major purchases, those who purchase randomly and not look at their purchase at the end of their timeline of ownership—prior to purchase often put themselves in a deeper financial hole.
You have the opportunity to avoid that by analyzing what you plan on doing after you purchase your home or auto and knowing or estimating the time frame in which you desire to sell on the front end.
Likewise, you want to save for retirement in as accurate a manner as possible so that you can continue to do the things that you like to do or do additional things in the future that you are not doing at this time–but would like to do. It is imperative that you begin your retirement journey by knowing the “number” that you need to reach to live at the level that you desire at this time–not years down the road.
2. Taking on too much debt
It is important that you don’t overextend yourself or take on too much debt, particularly at the wrong stage in your life. Spending too much on a monthly basis (particularly when you don’t have the disposable or discretionary income to do so), trying to do what others are doing and not having a handle on your monthly inflow and outflow of cash is a recipe for disaster in many cases.
Why leave your finances up to chance when you can use personal financial statements to get a handle on your debt and move forward with confidence. You can eliminate or get rid of much of your unwanted or burdensome debt by coming up with a debt payoff plan, obtaining a “financially alert mind” so that you won’t repeat your past mistakes, properly establish an emergency fund and utilize wise money management habits that you make a commitment to use throughout your lifetime.
3. Not properly screening financial professionals and others
You must realize that in the financial arena as well as outside the financial arena there are well qualified, highly competent professionals as well as not-so-qualified and unethical professionals.
4. Not having a systematic plan for success
Many consumers formulate goals in their mind and in many cases they reach them, however a more effective approach (particularly over the course of your lifetime) is to have a written plan for success that you helped create and you believe in.
Whether debt payoff, properly establishing an emergency fund, purchasing your first home or a vacation home, reaching your retirement goals, taking yearly vacations or any other major goal, you exponentially make the occurrence of those events happening by putting it in writing and having an effective written plan to meet or exceed the goals that you establish.
5. Not looking at their finances from a comprehensive perspective
Many consumers achieve success by looking at their finances in isolation or an incongruent manner. However that does not mean that you should do the same. You reduce stress and increase the likelihood of success by connecting all of the dots—so to speak—as it relates to your wealth building activity.
You must be able to see clearly the relationship among establishing a monthly cash flow plan, managing your credit wisely, properly establishing an emergency fund and managing and improving your insurance, investments, taxes, education fund, estate planning/wills and your retirement plan.
By seeing all of that in a clear manner you put yourself far ahead of those who manage their finances in general and you open up in your mind the real possibility and improved probability of achieving the goals that you desire throughout your lifetime.
It is important that you make a sincere effort to avoid mistakes as it relates to your finances. You want to get out in front of your finances and manage your finances in a more intelligent, consistent and proactive manner so that you can achieve success throughout your lifetime.
All the best as you avoid common mistakes that could lead to you achieving much less…
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