"Money can't buy you happiness. But it helps you to be miserable in comfort."
Reason One: Lack of knowledge: or more specifically, a lack of a desire to gain knowledge. Make the effort to read to read about financial matters and you will learn. Many people don't know where to go for unbiased advise so they do nothing.
Reason Two: Failure to set plans. Did you know that only 5% of the population sets goals and only 2% have any form of written goals? Their actions have a sense of purpose - they are results oriented, they are motivated, they are positive - they are life's winners. Without a plan it is easy to drift aimlessly, and live from day to day. If you have set goals you will know what you want to achieve.
Reason Three: Inefficient use of time and poor work habits. Time is like money - you can spend it or invest it in building a better you by self-development. When you waste you are wasting yourself. Plan your day - what do you really want to achieve today?
Reason Four: Lack of foresight. Achievers have an ability to look beyond the immediate and into the future. Although some may see your visions as dreams do not forget that you have to have a dream to make a dream come true. Unless you are fortunate enough to be left a legacy, the only money you will ever have working for you is that what you save from current income and invest. People with vision can multiply their income by investing in growth investments. Work for your money then make your money work for you.
Reason Five: The need to conform. Dare to be different which is why the majority of people are not successful. Don't be afraid take calculated risks. Remember the people who make big money are the ones who do the opposite of what everyone else does - sell when everyone else buys and vice versa.
Reason Six: Poor debt management through excessive borrowing. Lack of discipline through poor spending habits and having no budget. Borrowing for things that loose value, so that with interest payments you pay much more the article than it cost initially. (Especially new cars, furniture etc.)
Reason Seven: Lack of desire as a result of a poor attitude to acquiring wealth. Bad mental attitude has caused more personal problems than any thing else. What we expect to happen usually does. Successful people are optimists while unsuccessful people have a pessimistic attitude . Block out negative thoughts and stereotypes and mix with successful, positive people.
Reason Eight: Inadequate protection against unforeseen events. It may be the loss of a home due to natural disaster or the death or disablement of the bread winner. Adequate protection (insurance) against these events is vital to financial success. Not being properly covered has financially wiped out many potentially successful people.
Reason Nine: Lack of discipline. Most people find it difficult to save. It is easier to say yes than no. Those who lack discipline to say "no" will find financial success an impossible achievement. The "must have it now" mentality - buy now what you can't afford by charging it in the hope that you can pay for it later. Most people are easily led by advertising and the easy availability of credit.
Reason Ten: Procrastination. Many people put off a savings programme until it is too late. Young people have a wonderful opportunity and advantage because they have time on their side. The reasons people give for not starting a savings programme are varied. Many are genuine. In their twenties they are just getting started in life with a first job and want to enjoy themselves by spending on cars, stereos etc. In their thirties they have a young family and a mortgage to support and no money. In their forties they say things are tough with kids to put through university and unexpected medical expenses. And in their fifties it is already too late with no time left to accumulate capital through the magic of compound interest. A convenient time never comes.
Craig Lock is the author of the The Mad Money Book . He has been involved in the personal finance field for many years.
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