5 Common Wealth Building Pitfalls To Avoid

Michael K Personal Development 1 Comment

The difference between wealthy people and poor people can be found in the way that they both think and behave.

Here are five ways that poor people’s thoughts and actions often keep them from obtaining significant wealth:

1. Poor people are too focused on simply saving money.

Conventional wisdom tells us to save our money for a “rainy day.” But just because you saved $5 by skipping that lunch with your coworker doesn’t mean that the $5 you saved is earning you $5 more.

The key to building wealth is not to simply save money. It’s discovering how to get your money to duplicate itself. Wealthy people understand that their money needs to make them more money. They have learned that the degree to which they will become or remain wealthy is to the degree that they can make money while they are sleeping! Wealthy people choose to chase passive income. And they’re willing to move outside of their familiar environments to do so.

2. Poor people are too afraid to take risks.

Most people go to work everyday. They collect a paycheck every two weeks or once a month. They pay their bills. They live pretty comfortable lifestyles. Yet nothing pushes them outside of their comfort zones to begin mastering their unique passions.

Wealthy people understand that never stepping outside of their comfort zones keeps their lives from changing for the better. Significant wealth usually requires that we manage some type of risk. True wealth building almost always begins at the end of our comfort zones!

3. Poor people fail to mitigate their risks with knowledge.

Wealthy individuals don’t simply take risks for risk sake. They understand that while risk is important to wealth building, it is possible to reduce the risks that they take through knowledge. Check out these stats from www.richhabitsinstitute.com:

• 63% of wealthy individuals listen to audio books on their commute to work compared to only 5% of poor people.

• Only 6% of wealthy individuals watch reality television compared to 78% of poor people.

• 74% of wealthy individuals teach good daily success habits to their children compared to only 1% of poor people.

• 86% of wealthy individuals believe in lifelong educational self-improvement compared to only 5% of poor people.

Wealthy people understand the importance of making time to gain the education they need to put themselves in the best position to succeed financially.

4. Poor people don’t think long-term.

Where do you want to be 3 years from now? In 5 years? In 10 years?

Wealthy individuals know how they’d answer these questions. 

The key question however is this: Do you?

Whatever your answers are, the key to reaching them is to begin by planning for it today. Becoming wealthy won’t happen overnight. However, by creating a plan and sticking to it, you will eventually get there.

5. Poor people view the world and behave like everyone else.

Billionaire Warren Buffet once gave the following advice: “Make a rule to always stay on the side of the minority.” In other words, Warren says that a key to obtaining wealth is to think differently about the world and act accordingly.

Successful entrepreneurs don’t see business opportunities for what they are…they see them for what they could be.

Millionaire inventors don’t see raw materials for what they are…they see them for what they could be.

Wealthy people understand that money doesn’t grow on trees neither does it rain down from the sky. It comes from taking unconventional ideas and resources and packaging them in such a way that others are willing to pay for them.

Your wealth is in your ideas!

But it will only show up to the degree that you take calculated risks and begin to act on them with wisdom.

Why do you think it is more difficult for some people to obtain wealth than it is for others? Be sure to leave your thoughts and opinions in the comments section below.

Michael K5 Common Wealth Building Pitfalls To Avoid

Comments 1

  1. Yolanda King

    I think it is more difficult for some people to obtain wealth than it is for others due to ignorance, fear of trying something new, listening to people who have nothing, unwillingness to invest time and money in learning what they don’t know, and then not acting on what they learned. This used to be me a couple years back. I’m not even sure when the transformation took place, but it started with renewing my mind.

Leave a Reply

Your email address will not be published. Required fields are marked *