4 Mistakes Keeping You from Creating Wealth – CEOWORLD magazine
According to a 2021 study from Credit Suisse, there are 62.5 millionaires worldwide, and the average wealth per adult is a mere $87,489. So what sets the millionaires apart from everyone else? If you take a hard look at the wealthiest people in the world, most of the time, their wealth can’t usually be traced back to one good decision. Rather, many credit their wealth to their overall mindset and their everyday decisions around money and investing. They have a wealth-creation mindset. So what sets these people apart from everyone else?
Many People Make Emotional Decisions Vs. Financial Ones
There are basic fundamentals of wealth that many of us ignore. One huge one is that many of us make decisions with our money for emotional reasons, vs. financial ones. Here’s the thing, there is not a plain right or wrong answer here. The most important thing is to understand what you are basing your decisions on. Are your reasons financial or emotional? Both are legitimate, but understanding the underlying aspects of your decisions will help you make better ones as you grow your wealth and plan for your future.
So ultimately, how can you determine an emotional decision vs. a good financial decision? If you can take that decision and put it down on an Excel spreadsheet and analyze it, it helps clarify if you are making a good or bad financial decision. Yes, there will be points in your life when you need to make a fight or flight decision. But understanding the difference between an emotional and a financial decision is worth putting down on paper.
There Are Other Common Financial Mistakes You May Be Making
Understanding why you are making the decisions you are making is the first step. But it’s likely that you are also making other mistakes that are holding you back.
Here are 4 other common financial mistakes you might be making:
- Buying the nicest house in the best neighborhood possible.
This is by far, the most disputed topic in personal finance. Buying a house in the best neighborhood possible with top schools is something that a lot of people desire. And while it’s not wrong to want to enjoy a certain lifestyle with your family, it can be a mistake that can hold you back from building wealth.
When you buy a house, there’s no real way to know if financially it will be the best investment because there are a lot of factors that go into whether or not your home value will rise in comparison …….