6 Common Mistakes To Avoid When Building Wealth

I study the rich. Why?

Because they do things the poor don't do and just as important...

They DON'T do things that the poor do.

As with any pattern in life, there are fundamentals and patterns that can be repeated and executed. 

So here are 6 things that jump out as the most obvious difference between those building wealth and those who are just focused on getting by.

1) Focused solely on the end-goal (being rich)

The rich focus on the journey. The poor focus on being rich already.

This can lead to discouragement when setbacks happen because reaching the final goal seems so much further away. 

It is also hard to feel like there is progress. 

When the goal is $1,000,000 net worth and you are starting at $0, that is a huge mountain to climb that only 9% in the country ever achieve.

When the goal is $10,000 net worth, then $25,000, then $100,000, progress is easier to measure and more encouraging when milestones are reached.

2) Trying to take shortcuts

Falling prey to get-rich-quick schemes or trying to take shortcuts to wealth can result in financial losses and missed opportunities for genuine growth.

Anyone who actively looks for shortcuts in life will never get where they want to go.

3) Taking poorly calculated risk

Not taking calculated risks and making informed decisions can hinder progress and limit potential returns on investments or business ventures.

People have a natural tendency to avoid loss so they are quick to calculate the potential downside.

The problem is they don't also look at the potential upside to that risk. This is a key trait of the rich.

4) Living beyond their means

It seems obvious but this is the number one thing preventing people from building wealth.

Consume. Consume. CONSUME!

That's the never ending message we get from society through ads, social media and our peers. 

Buy crap you don't need to impress people who don't care about you!

The rich understand that the world belongs to those who PRODUCE. So they limit their consumption and keep it under certain levels.

This is why you hear stories of the ultra-rich like Warren Buffet living in the same house he's lived in since 1960. Its just a habit because they don't care what others think.

5) Not investing and saving

Again, this feels obvious and yet people just won't do it.

Less than 60% of people in the richest country in the world has $500 in their savings account.

So forget about investing. If you won't save $500, you'll never be a successful investor.

And yeah...the rich invest regularly.

6) Lack of patience and discipline

This is pervasive across the board.

Money is about behavior and most people have terrible impulse control.

Don't believe me? What's something you consume daily? Have a coffee? Drink soda? Candy?

Try to quit it for ONE WEEK.

I bet you won't. And the ones who can't have no chance at becoming rich until their learn to master their impulses.

Not because buying Starbucks and Pepsi will prevent you from being rich.

But because if you can't control those simple impulses, you have virtually ZERO chance at strengthening the mental muscles to develop the disciplines needed to build wealth.