There are plenty of people who want to become financially free and yet find themselves struggling year after year. If not you, then most likely someone you know continues to struggle with money issues.
Why do you think that is? What are the top reasons people continue to struggle financially?
While several factors come into play, here are some of the more common reasons for continued money problems:
1. Lack of Financial Education
Many people just don’t know that much about finances. Maybe they were raised in a home where the parents struggled with money, so pretty much all they were taught is, “We can’t afford that.” Or perhaps financial responsibility wasn’t something that the family valued. There are plenty of young adults graduating school that have no idea how to balance a checkbook or understand how interest works on a loan.
Not understanding or ignoring basic financial principles can limit people financially. Even a simple tool like budgeting can help those in dire financial straits. However, if you don’t know how to budget (or stick to it), then you’re likely to continue to struggle.
2. Living Beyond Your Means
Another common reason people struggle financially is that they live beyond their means. This means that they spend more than they earn, creating massive debt that keeps them feeling trapped. Sure, it takes money to live, but you’ve got to live well below your means in order to get ahead. If you continue living a lifestyle that you can’t really afford, then you’re likely to pay the consequences sooner or later.
Therefore, it’s essential to learn things like budgeting, weighing pros and cons, learning about cash flow, resisting instant gratification, how to get the best interest rates, and so on. If you’re spending more than you earn and debt has become a real problem, get serious about making changes. Tackle your financial issues with a plan.
3. Playing It Safe
Some people tend to struggle with money because they play it safe. Maybe they grew up in a home where “We won’t have enough” was the unconscious message that was being played over and over in the home. That created fear and reservation about stepping out and taking any risk.
Many wealthy people have stepped out and leveraged their money to make more money. They didn’t let fear hold them back and took a risk on something new. Now, playing it safe isn’t always a bad thing, but calculated risk can be a vehicle to get cash flowing nicely.
4. Not Focusing on Financial Growth
People tend to spend a lot of time thinking about money, but it’s often worrying about the bills they’ve got to pay or how they’re going to ever get out from under their debt. They’re focused on the negative and giving energy there, instead of focusing on the positive and putting their energy there.
Building wealth must be high on your values system for you to experience wealth. If you value that, then you’re going to take time to focus on ways to build it. You’re going to talk about it in a positive way, affirming your desire to be financially free. You’ll begin to make better financial choices, understanding the importance of money as a vehicle or resource to live the kind of life you desire.
Some people continue to struggle with money because they have simply gotten comfortable with the familiar. Maybe they’re doing just enough to get by. While they’re not experiencing a ton of pain financially, they’re not financially free either. We all know that wealth does not magically appear or fall from the sky. To become wealthy, you’re going to have to make an effort. You’re going to have to strategize and commit to acting on your plans.
Most things that are of value are not easy breezy. This isn’t to say that building wealth must be tedious, but it will require some time and effort on your part.
Do You Need to Make Some Changes?
Take another look at the top reasons people continue to struggle with money. Do you see yourself in one or more of these? If so, are you willing to make some changes starting today? You deserve a life of ease where you have a healthy relationship with money, so you can experience the financial freedom that you desire.