Although we can all agree that it's important to have some, there's no set amount of money that will make you happy or satisfied.
You might think that if you just had $5,000 in the bank or $50,000 in the stock market then your life would be complete.
But we all know that isn't true! Just because you make more money doesn't mean it'll automatically bring happiness into your life; instead, it's how you use your finances and how much value they provide for your life as a whole (and not just an isolated pocketbook) that makes all the difference.
You Don't Manage Your Money Properly.
If you don't have a budget or if you're not managing your money properly, it's going to be really difficult for you to get out of debt and start saving.
Income is what comes in. Expenses are what goes out. It's as simple as that. If you aren't making the distinction between the two, then it becomes much more difficult for you to determine how much money is available for saving and investing each month—or even where your spending habits are taking you personally, professionally or financially.
I'm not talking about having an app that tracks all of these things for me (although there are some great ones), but rather being disciplined enough to sit down once per month with pen and paper (or computer) and manually track my income/expenses throughout that period of time until I figure out exactly where my money is going each month so I can start making changes accordingly based on those numbers alone without having them skewed by good intentions like writing down something that was actually only used once over several months instead of each individual time it was used during those months.
This is one of the things I like to do with my clients who are trying to get a better handle on their finances. It's important to know where your money goes each month in order to make changes when necessary instead of guessing at it.
You Don't Set Financial Goals.
It's a difficult concept to come to grips with, but the reality is that most people who struggle financially do so because they don't have financial goals and plans in place to reach their desired level of wealth.
Without a plan, it's impossible for you to meet your goals. The best way to create a financial plan that will help you achieve your goals is by using something called "the 60/40 rule."
This rule says that 60% of your income should go toward living expenses (food, rent/mortgage, car payments), and 40% should go toward savings and investments (retirement fund).
By sticking with this ratio every month for years on end, you can amass enough money for all kinds of purchases: vacations; cars; houses; college educations for your children…and even early retirement! All things that most wealthy people enjoy regularly!
You Allow Yourself to Be Distracted by Non-Essentials.
I see it all the time. People who are constantly distracted by their phones or social media, and they're not doing anything productive with their time. You can't be rich if you're not saving money.
You can't build wealth if you're wasting your money on non-essentials such as new clothes, eating out or paying for cable TV when there's a perfectly good way to watch free Netflix.
Investing in yourself is important too, because no one will invest in you if they don't know what your goals are or how valuable your skills and talents are! If you don't make time for yourself, no one else will either!
Finally, spend more time with your family! We all need some balance in our lives so we don't burn out from overwork!
You Never Invest in Yourself.
You can’t expect to be a good manager if you don’t invest in your education, skills and career development. This is the most important investment you can make because it will pay off in the long run. You might have heard that “a picture is worth a thousand words."
That's true but only when someone sees your face or hears your voice. It doesn't matter if they're impressed by what they see or hear; without an image of some sort, there's nothing for them to remember about who we are as people—or what we do for a living!