Have you ever been curious about why some people achieve financial success while others fail, despite their enduring efforts?
Reason 1: Lack of “know-how”
As our education system does not teach the art of making money it is up to you to gain the necessary knowledge.
Gaining the knowledge is not easy; it takes time, discipline and effort. How many non-fiction books do you think the average person would have read in the last year? One? Two? Five? In all probability, none. Even a best-selling non-fiction book sells in pitiful numbers, testimony to the indifferent attitude that most people have to learning.
If you want to succeed in any pursuit, be it the art of making money or whatever, you must gain knowledge. Learn by talking with those who have been successful, gain from their experience. And of course, do more of what you are doing right now. Read books, attend seminars and listen to recordings on education and motivation. In other words, actively pursue knowledge.
Reason 2: Failure to set plans
Imagine a badminton game without court lines. It wouldn’t be much of a spectacle would it? Well this I exactly what most people do in life. They hit around in various directions and when the whistle blows at the age of retirement they wonder what the score was!
Did you know that only five percent of the population set goals and only two percent have any form of written goals? Their actions have a sense of purpose – they are result oriented, they are positive – they are life’s winners.
Where do you want to be in five years time? What is the motivating force that gets you out of bed each morning? – and don’t say it’s your spouse! If it is because someone else is telling you to “get up and be here by 8.30am from Monday to Friday” then you need to set goals.
The reality is that most people do not get out of bed. They sleep throughout their day. Unfortunately, some people never wake up!
Without a plan it is too easy to drift aimlessly, being tempted by the many lures that marketers dangle to separate you from your money.
If you have set goals you will know what you want to achieve and you will have a good reason to say NO to the many sweet temptations that will be laid before you.
People fail to succeed because they never PLAN to succeed. It is not that they plan to fail, they fail to plan.
Reason 3: Inefficient use of time and poor work habits
This reason for financial failure is related to poor planning. I wish I had a ringgit for every time I have heard someone say “I haven’t got the time”. Nonsense! Everyone has the same amount of time, it’s just that some use their time more efficiently. A good time manager can achieve up to 50 percent more in a day than someone who manages their time poorly. In other words, a good time manager will create time by being efficient.
Reason 4: Lack of foresight
Having foresight is having the ability to predict the eventual outcome of a certain series of events well before that outcome is obvious.
No doubt you have at some time visualized a snowball rolling down an ice capped hill, increasing in size and reaching unbelievably large proportions. As it begins its descent it is difficult to imagine the accumulation effect and the proportions to which it will eventually grow.
This snowball effect is exactly like the process of accumulating riches. Save something of everything you earn and like the snowball, your wealth will grow to unbelievable proportions. Visualize the potential of that snowball… the sacrifices and obstacles along the way will appear trivial.
Achievers have an ability to look beyond the immediate moment and into the future. Some may see your vision as dreams, but do not forget that you must have a dream to make a dream come true.
Reason 5: The need to conform
If you behave like the majority, you will become part of the majority. Being part of a crowd may be comforting, but it is not financially rewarding.
Dare to be different and you will be prepared to take on the opportunities that surround you. It is the creative minority that seize the opportunities, and it is they who will eventually win through.
Remember all great causes start with a minority, and great achievements are done by those prepared to challenge convention.
Accept that if you are to achieve a worthwhile goal you will need to be one of the five percent who dare to be different, not one of the 95 percent who seek comfort in the conforming majority.
Reason 6: Poor debt management
There is nothing wrong with borrowing money, but one very basic rule should be obeyed: the income generated from it must exceed what it costs. Unfortunately, so many people ignore this very basic rule. To their detriment they borrow money to buy consumable or luxury items such as cars, holidays or household items. Not only do they have to pay interest, but the asset itself loses value.
Reason 7: Lack of desire
Desire is to achievement what yeast is to baking. Obviously if you want to become financially secure you must have the desire to achieve because desire motivates action. A strong desire will give a person confidence and they will begin looking at every situation as an opportunity to achieve their goals. Anyone who is content with mediocrity will always be mediocre.
Reason 8: Inadequate protection against unforeseen events
We are all aware of unfortunate examples where a family has lost everything because of an unforeseen event. It may be the loss of a home due to natural disaster, or the death or disablement of the breadwinner. Adequate protection against these events is vital to financial success. Failure to do so could see decades of savings lost within minutes.
Reason 9: Lack of discipline
Most people find it difficult to save because they save – buy – save – buy, while others simply buy.
It is easy to spend because it is easier to say yes than no. Those who lack the discipline to say “no” will find financial success an impossible achievement.
Reason 10: Lack of action
How many times have you heard someone say “I am getting around to it.” Getting around to it is not good enough. To achieve anything requires action.
At some point you must say “I have thought about it, I have laid my plans – now I am going to do something about it.” By breaking that goal or dream into many small tasks, the action become a series of small steps in an evolution rather than an immediate metamorphosis.
So… do you have what it takes to succeed?
