Why do people fail financially?
Why is that some people achieve financial independence and others don’t?
What does it take to succeed financially?
These questions are what I hope to help you answer in this article. Financial success is not the exclusive right of some, but a dream achievable by all. The only person standing between you and your financial freedom is YOU.
In this article, I have identified 7 factors responsible for the financial failure of people. As you read through them, be honest with yourself and make up your mind to correct those factors affecting you.
- Incorrect beliefs about money
As a man thinketh so is he. Meaning you are simply what you think. Whether it is money, life, health or whatever, the result is the same; you become your thoughts. The first place wealth is created is in your mind. Money is first created in your mind. If you can conceive the thought, then you can receive it.
There are basically two beliefs about money; positive and negative.
Your belief about money is positive when you have an abundance mentality. An abundance mentality is believing that there is enough prosperity for everyone on earth. You are not poor because there isn’t enough prosperity or wealth for everyone, but because you limit yourself mentally.
Your belief about money is negative when you have a scarcity mentality. A scarcity mentality is when you believe there is not enough wealth for everyone. It is when you are always thinking of how you can’t afford something rather than focusing on how to get it.
- Fear and emotional ties with money
Truth be told, the subject of money is a very emotional one. The thought of it can send cold through your spines and leave you more worried than before.This is why very few people are comfortable talking about money.
Many would rather go about their lives without having to confront the issue of money. If you feel this way about money, it is normal. The fear associated with money is a valid one. Your brain is simply informing you about the dangers associated with lack of money.
What is not normal however, is failure to heed this warning signal. The fear and emotional ties with money is not to be dreaded, it is to be refocused into a positive emotion that will inspire you to take necessary actions.
The fear of money is not meant to paralyze you, but to inspire you. Let the fear push you forward to eliminate the fear through financial independence. Financial freedom is how you put an end to the fear and emotional ties you have with money. When you don’t have to worry about money because you generate enough to meet your living expenses, the fear of money is dead.
Money will not come to you on the platter of gold. You have to cultivate the discipline of execution. This is the ability to get stuffs done when they should be done. It is the ability to take action to make your financial goals a reality. Many people fail financially because of their poor work habits.
Procrastination is the habit of pushing important work forward with the mind of getting it done tomorrow. What you must remember is this; today was tomorrow yesterday and tomorrow will soon be another today. What does this tell you? All you’ve got is now, not tomorrow, so your job is to make the most of it!
- Failure to make money a priority
Is money your number one goal in life? If you treat money like it doesn’t matter to you, it will be difficult for you to make money. The rich treat money as important and make it a priority daily.
How much of your time do you devote to achieving your financial goals daily? How much time do you devote to improving your financial intelligence daily? How much time do you devote to budgetting your money daily?
The less time you devote to these activities in your life daily, the harder it becomes to excel financially. This doesn’t mean you think only of money, it means you become more conscious of your financial life.
- Failure to establish financial goals
Do you have financial goals? Not having financial goals is one of the factors keeping many poor. How can you expect to grow your income if you don’t have a precise figure in mind? Just confessing that you need more money is not enough, you must be as specific as possible with a particular figure or amount in mind. Why is this so?
The human mind is a very tricky organism, it only works with what it has been fed. The more specific the data you feed it through your thoughts and words, the more focused it becomes. The less specific the data you feed it, the more confused it becomes. Goals are how you help your mind to become laser focused. It is how you gain clarity which is a necessary requirement for action.
Those who set financial goals with clear deadlines and clear figures often end up having their goals achieved. It is as simple as that; if you don’t know where you are going, how do you get there? Financial goals gives your financial life a direction.
- Failure to develop the savings habit
All that you earn is not meant for consumption. The classic book by George S. Clason “the richest man in Babylon” puts it this way; pay yourself first. A lean purse will attract no coin (money), but a fat purse will attract more coins (money).
Money saved are seeds you plant in order to reap more in the future. Without cultivating a consistent saving habits, you will not have excess money to invest (plant) and when you don’t sow, how then do you reap?
- Financial illiteracy/ignorance
Your lack of money is caused by your poor understanding of money. In other words, your low financial IQ. Making money is a skill and just like every other skill, it can be learned. Learning how to make money is the essence of financial intelligence. It is the conscious effort to develop your understanding of how money comes and how money is retained.
The less you know about money, the less of it you stand to make. The rich make it a priority to master money skills such as financial goal setting, budgetting, saving, investing, leverage and giving. They keep on sharpening these skills of making, managing and multiplying money.
So the big question for you is this; how much do you know about money? The more you know, the more you improve your odds of financial success.
Which of the above reasons for financial failure are you struggling with?
Do you have any other factor besides these 7 listed above to add as part of the reasons people fail finncially?
Share your thoughts in the comment section below, looking forward to it!
About the Author
Tito Philips, Jnr., is the founder of DifferentiateOnline – an integrated digital marketing solution and the community leader of a tribe of unusual entrepreneurs at naijapreneur where they raise the bar of entrepreneurship. Connect with him on twitter @iMADphilips