10 Reasons Some People Don’t Achieve Financial Success

by Craig Lock

Reasons Some People Don't Achieve Financial Success photo

Do you feel like you’re failing financially? Eliminate the stumbling blocks to a better financial future by understanding these reasons why some people never achieve financial success.

“Money can’t buy you happiness. But it helps you to be miserable in comfort.”

Why do people not achieve financial success?

1. Lack of knowledge.

Or, more specifically, a lack of a desire to gain knowledge.

Make an effort to read about financial matters, and you will learn. Many people don’t know where to go for unbiased advice, so they do nothing.

2. 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.

3. Inefficient use of time and poor work habits.

Time is like money – you can spend it or invest it in building a better you through self-development.

When you waste time, you are wasting yourself. Plan your day – what do you really want to achieve today? What can you do to help improve your financial situation?

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4. Lack of foresight.

Achievers have the ability to look beyond the immediate and into the future. Although some may see your visions as dreams, do not forget that you must 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 what you save from your 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.

5. The need to conform.

Dare to be different. Not doing so is why the majority of people are not successful.

Don’t be afraid to 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.

6. Poor debt management through excessive borrowing.

It often comes down to a lack of discipline through poor spending habits and having no budget. And borrowing for things that lose value, so that with interest payments, you pay much more for the article than it initially costs. (Especially new cars, furniture etc.)

7. Lack of desire as a result of a poor attitude toward acquiring wealth.

A bad mental attitude has caused more personal problems than anything 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.

8. Inadequate protection against unforeseen events.

It may be the loss of a home due to a natural disaster or the death or disablement of the breadwinner. Adequate protection (insurance) against these events is vital to financial success.

Not being adequately covered has financially wiped out many potentially successful people.

9. Lack of discipline.

Most people find it difficult to save. It is easier to say yes than no. Those who lack the discipline to say “no” will find financial success an impossible achievement.

They have 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.

10. Procrastination.

Many people put off a savings program until it is too late. Young people have an incredible opportunity and advantage because they have time on their side.

The reasons people give for not starting a savings program are varied. Many are genuine.

People in their twenties are just getting started in life with a first job and want to enjoy themselves by spending on cars, entertainment, 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.

About the Author

Craig Lock is the author of the The Mad Money Book. He has been involved in the personal finance field for many years.