Let's call it like it is just about everyone on earth wants to be rich
unfortunately very few people ever amass significant wealth and so in this video
I'm going to share with you one of the main reasons why so many people fail at
becoming rich and word on the street is that for every person who hits a
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this may sound controversial but the main reason why so many people don't
become rich is because they choose not to be and no I'm not talking about monks
or priests who devote their lives to their faith I'm talking about normal
people like you and I who make decisions each and every day not to become rich
these decisions are really mistakes and for most people these mistakes happen
over and over again until it's basically too late to accumulate any sort of
meaningful Wells now before I explain why so many people choose not to be rich
let's talk about becoming rich in the first place when most people think of
becoming wealthy they think of taking risks working extremely long hours or
winning the lottery and sure at times these things can be factors in amassing
significant wealth but they don't always have to be present to become rich the
real truth is that getting rich can actually be really easy and fairly quick
but only if you know exactly what you're doing
sadly one of the biggest mistakes that poor people make every single day is
probably something that you've done many times and even to this day I still find
myself doing it from time to time you see as humans we are wired to want to be
part of a group as back.you more primitive times that used to mean that
we add a higher chance of survival in a more modern context this means trying to
fit in by succumbing to the latest fashion trends or needing to have the
newest iPhone which of course cost money but it's not just low income earners who
fall victim to this innate need to fit in I've worked with many lawyers doctors
and other high-income earners and they too can find themselves living paycheck
to paycheck the core of this issue is what I like to call falling in the trap
whether you're an employee or a business owner everyone is susceptible to the
trap falling in the trough starts to take place when you see
income rise maybe you got a pay raise or even a promotion when you start to see
those bigger paychecks come in then you were slowly moving towards a trap
in essence following the Tropic errs when you undertake any commitment that
could possibly impact your financial well-being for instance let's say you
just finished articling at a law firm and are now making real law your money
you go out and buy the biggest home you can afford as you want to show up to all
your friends just how big of a success you've become however after a year as a
lawyer you realize your true calling is in the arts and while you want to make a
career change you are now committed to paying a massive mortgage payment each
and every month which is better known as having fallen into the trap what a lot
of people don't realize is that wealthy individuals tend to be very picky with
how they spend their money whereas poor people will probably be out
at the club popping bottles and spending hundreds of dollars the rich will be at
home reading a book that they borrowed from the library now if you do enjoy
going out to the club and having a good time don't feel like this is me telling
you not to just know that if you really want to generate life-changing wealth
then starting to become more conscious of how you spend your money is
imperative let's look at a comparison of how two different lifestyles can lead to
two vastly different financial situations
let's compare Mike and Steve Mike works as a sales executive and makes $400,000
per year that's more than thirty thousand dollars per month and with that
kind of income you could definitely afford to pop bottles at the club or buy
yourself a fancy sports car Mike lives a very lavish lifestyle that costs him a
hundred and fifty thousand dollars per year he also pays about two hundred
thousand dollars in taxes which is pretty realistic for that amount of
income this leaves Mike with fifty thousand dollars meaning that it would
take him 20 years to save up a million dollars now let's look at Steve Steve
makes half that income or two hundred thousand dollars per year but instead of
living in an oversized house and driving an expensive sports car
Steve spends much more conservatively sees annual living costs amount to only
fifty thousand dollars and he pays $75,000 in
taxes this leaves Steve with $75,000 which if saved would mean becoming a
millionaire in just over 13 years or 7 years less than his friend Mike what I'm
trying to show you through this example is that how much you earn is important
but how much you spend and ultimately save will determine whether or not you
become rich sadly people who overspend her all around us and unfortunately
either learn this lesson the hard way I used to date this very sweet girl but
one of her fatal flaws was that she was a chronic spender it seemed like every
time she got paid the money was spent in an instant sometimes it was spent on a
new pair of shoes upgrading her phone or drinks at the bar as her boyfriend I
obviously loved her but her spending habits threw up quite the red flag you
see I wanted to save up for a house and a nice wedding but seeing my partner
have no ability to act responsibly with their money put immense pressure on me
to carry us financially luckily I had the foresight to know that even if she
continued getting raises at work and seeing her income rise exponentially her
spending habits would always cause her to be living paycheck to paycheck after
realizing her financial habits would never change
it was only a matter of time before we broke up so when it comes to building
the wealth you've always dreamed of it's much less about how much you earn and
much more about how much you save there will always be endless opportunities to
spend but if you want to realize your true rich lifestyle then you must become
scrupulous with your spending and before you know it you'll be joining a
seven-figure Club thanks for watching if you want to go from the life you have to
the life you deserve then hit the subscribe button now
you