Six Reasons Why Some People Will Never Grow Rich

There’s an interesting maxim about how long wealth actually stays with a person and their descendants.

The saying is three generations, tops: one to make it, one to spend it, and the third to blow it. Of course, there are exceptions to this rule, but have you ever sat down and seriously thought about wealth and what it means to you? Or do you figure, “Like seriously,

I’ve always been broke, my forefathers were broke; it’s generational” – it’s just a rite of passage of sorts. If you feel that wealth is out of your reach, you aren’t alone.

What is Wealth Anyway?

A great quantity or store of money, valuable possessions, property, or other riches.

An abundance or profusion of anything.

See some of the reasons some won't grow rich below;

1. Overspending

If you have a ferocious appetite for spending beyond your means, you’re not alone. 

According to a survey, of the 52% of people who habitually overspend, many balance the shortfall by taking from their savings, and 22% rely on credit cards. Blowing all your money each month is not a realistic pathway to wealth. Start tracking where your money goes each

month, check where you can cut back, and create a ‘realistic’ budget that allows you to pay your bills and invest in a retirement account or an emergency fund.

2. Not Saving Enough

Welcome to the club! The personal savings percentage in the US is a measly 4.9% of disposable income. Saving should become a priority if you want to accumulate wealth. Start with an emergency fund. Once your emergency fund is substantial, you can redirect small amounts toward other goals like purchasing a home or paying for college.

3. You Have Too Much Debt

Certain debts are a precursor to financial success,like purchasing real estate or starting a business; however, a high-interest credit card balance is not.

Pay off credit cards with the highest rates first.

4. You Don’t Have a Plan

Without a definite, clearly defined plan, becoming rich will seem like an unbelievable dream. This alone will solidify your excuses for overspending and not saving. As the saying goes, “Those who fail to plan, plan to fail.” Putting together a financial plan may seem tedious, but it doesn’t have to be, and you can get used to it.

5. You Don’t Have an Emergency Fund

Experts say you need at least six months of income saved in case of an emergency. Life is tricky, and not having some type of safety net can turn a comfortable situation into a disaster.

6. You Started Late

Time is slipping by. Just like starting an exercise routine, the most difficult part about saving is getting started. Even if you have debt, a small income, or many expenses, you can save something, even if it’s only a small amount.

Written by AJENIFUJA OLUWAFEMI