5 Reasons You Aren’t Rich . . . Yet

Media / Blog

5 Reasons You Aren’t Rich . . . Yet

Prev

Use Your 401(K) For Mortgage Payments?

October 11, 2011

5 Reasons You Aren't Rich . . . Yet

Everybody at some point of their life has that dream of having enough money to do whatever they want whenever they want irrespective of cost. Well, even if you do think about cost, that idea of becoming rich enough to walk in and tell your boss this is your very last day. If you want to get rich, here are five things that may be in getting in your way from achieving financial independence, purpose, and freedom.

  1. You care what your neighbor's think - There are still many people holding on to their overpriced real estate waiting for it to come back. In the meantime, the mortgage along with all the fixin's you really couldn't afford when you bought that house are killing your bottom line. I believe most people are hanging on to those properties today along with the country club membership because of their egos and fear about what their neighbors will think. It's hard to swallow your price because you know your neighbors might gossip about you at the next party in your development or subdivision. Do the right thing. The quicker you get to a manageable house, the quicker you will see your net worth climb.
  2. You can't delay gratification - Since we live in a day and age where people want it yesterday and typically buy new items on credit, learning how to delay gratification is a big part of becoming rich. There are many temptations between new household purchases, fancy vacations, and the latest electronic gadgets. If you limit yourself to just one special item per versus many you begin to see the savings instantly. You can have a great vacation or a wonderful household purchase without breaking the bank. For your next temping purchase, just try to wait six more months before you buy it and then ask yourself if you really need it.
  3. You don't use the rule of 1/3rd's - One important wealth building strategy I have recommended to clients for years is the rule of 1/3rd's. For any bonus, pay raise, etc., you get through work just try to save 1/3rd of that number. You can still have fun with a 1/3rd of it and a 1/3rd will likely go to taxes. This strategy will also make sure you don't outstrip your income by expanding your lifestyle too fast.
  4. You don't pay attention to your money - People who tell me that they don't look at their 401k statements are destined to not be wealthy. You must act like the CEO of your company and pay attention to all the fine details if you want to grow your net worth. It won't happen solely by putting it the hands of others. I do recommend getting a competent Private CFO® or financial advisor to help, but you must be the owner of your family finances.
  5. You have bad habits - At the end of the day, habits are important no matter what you do in life. If you have made money mistakes in the past, then you may feel like it just isn't your thing to be good at money. Changing your attitude can change your altitude when it comes to building your wealth. It takes just 21 days to create a financial habit.

Next

Personal Finance 101: Generation X Series - You Won’t Make Hay Forever

About the author

Ted Jenkin in a suit and tie

Ted Jenkin

CEO and co-Founder

Hey!

My friends and family all think I'm a workaholic, but I say I'm just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. Investor Disclosures: https://bit.ly/KF-Disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Background and qualification information is available at FINRA's BrokerCheck website.

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.