Here are a common list of reason why you don’t yet have money freedom.
You Never Decided
It all starts with a decision. Think back to every goal in your life you’ve ever accomplished. They all have one thing in common. You didn’t just decide. You truly decided. It’s a do-or-die moment. You still remember that gut feeling to this day. Your back was to the wall. You had no other way to go but forward.
With decision comes a basic questions: Are you committed or interest?
Commitment will help you go the extra mile when the hour is the darkest. Interest will only get you so far.
The actor Will Smith put it best when he said that if you and he are to race on a treadmill, he will win because of the simple reason that he will die in the attempt rather than give up.
That is what has to happen with you. You have to be willing to put everything on the line.
Decision is the first milepost. After deciding, then all the other reasons you don’t have money freedom can be addressed.
You Have Money Myths
You likely have faulty beliefs about money. These are also called money myths. For example, you may believe you’re just a slave to money. Or that the money is the root of all evil. Whatever your belief is, that creates a resistance within you and keeps you from making more money.
At the very simplest, if you believe money is the root of all evil then you will do whatever it takes to be good, even if it means pushing away money.
You can tell a lot about your relationship with money when you look at your relationship with your lover. For example, are you giving and generous? Or, are you two together because it’s a marriage of convenience. Whatever the answer, ask yourself if that’s also your relationship with money.
You Don’t Save and Invest
Wealth generation is simple. You just have to make sure you have more money coming in than is going out. Generally, that means living within your means.
Investing in your money is also a good idea. Take advantage of the power of compound interest to grow your wealth exponentially. Did you know the federal government recently did a study and discovered that almost half of all Americans do not even have $400 saved in the bank for an emergency? All it takes is a visit to the emergency room, an unexpected car repair, or the loss of one’s job for those people to experience financial ruin.
Saving and investing is just a habit. Yet, so many people sadly fail at learning how to set good goals and good habits. You may have heard that on average it takes 21 days to form a new habit. But that study is faulty. In fact, it takes 66 days on average to form a new habit. Some people can form a new habit in as short as two weeks. Others take a whole year.
Examine your own life and ask what is the most significant habit you’ve form in the past year. Likely, you can only name one thing.
You Have the Wrong Habits
Good habits are difficult to form. Why do you suppose than only about 5% of people fulfill their New Year’s Resolutions? There’s a reason why gyms are packed within the first month or two of a new year, then gradually gets less busy again.
When you form a new habit, you often need a new routine and thinking to replace the old ones. For example, you may be accustomed to coming home from work and turning on the TV rather than read a book to improve your financial literacy.
Are you saving and investing a portion of your paycheck? At the very least, are you putting into your 401(k) what your employer matches? If not, then you’re passing on free money, money which can help you gain financial freedom a lot sooner.
You may also be scared of calling your financial adviser because you really don’t want to know just how bad or far behind you are with your financial goals.
Yet, you are exactly where you need to be. As financial advisers love to say, past performance is not an indicator of future performance.
You Don’t Know Where Your Cash Is Flowing
It starts with sitting down and figuring out your finances. When you can account for every dollar, it shows you have a mastery over the energy of money.
That is what money really is. It’s a representation of the successes in your life, the value you provide to other people, and how you choose to use that value. When you demonstrate greater control over your budget, then you show you have other parts of your life figured out.
Most people are afraid to even do this step. If you can’t bring to bear and face the music, then how can you ever expect to achieve financial freedom?
When you start addressing some of these reasons, you will realize something wonderful: Financial freedom. But it does take time to figure things out and to become a better version of you. I always suggest taking it easy and being kind and gentle on yourself.