Most people try to get wealthy through quick schemes, gambling, lottery, or hoping to inherit some money in the future. The possibility of acquiring wealth through these means is almost non-existent. The truth is that most people can acquire wealth if they can follow basic guidelines and discipline. The challenge is that there are different obstacles and distractions along the line. So, staying clear is very important.
These problems might be:
Lack of discipline (living outside of your budget), personal and consumer Inflation as well as having an overall financial plan.
Lack of Discipline
How disciplined are you when it comes to your financial plan?
Do you feel satisfied that you are saving and investing every month/year?
Most people lack discipline of following a path of savings and investing and therefore they never reach their goals and objectives. Understanding the impact of starting early and knowing the right amount of new savings will help start the process.
As soon as an individual/family begins to build savings for their short, mid and long-term goals, they may be on the road to becoming wealthy. Relying on unusual rate of returns or on a possible inheritance only discourages new savings and encourages people to live beyond their means.
Personal Inflation
All goods and services tend to become more expensive over time and according to www.BLS.gov, $1,000 in 1995 would have the same value as $1,560 of today. This means that goods and services over the last 20 years increase cumulatively by 56%. This is one type of inflation but there is also personal inflation which involves improved lifestyle, new technology gadgets that are replaced every 2 years, and maintaining the lifestyle of friends and neighbors. If you can control these roadblocks, you will be closer to becoming wealthy in the future.
With systematic savings in place, understanding your goal of each savings/investment account and sticking to the plan will give you financial success.
There are other aspects involved when developing a financial plan that will create wealth for you and your family. One of these areas involves being certain that unexpected life events such as loss of job due to sickness, premature death or market corrections does not stop your goals and dreams.
2016-30483 Exp. 10/17
