Failure is a great teacher. In fact, it is easier to learn when things go wrong than when things go right. Why? If you are successful, you might find it hard to isolate the things you did wrong and still manage to end up at the right place. You might end up chasing shadows. When things go south, on the other hand, it is easier to track down the component in your overall game plan that didn’t work. After all, failures usually involve only one or a few things going wrong along with other elements going right. You can troubleshoot and isolate key elements that you need to fix.
If you want to achieve your financial goals, study the following reasons why people fail to achieve their goals. These are common failures and are often easy to spot. The good news is that their fixes are also quite easy. The key is to take action and not get fatalistic or look for things or people to blame. Simply put, if you commit any of these errors, get back on your feet, dust yourself off, and try again.
Here now are the top three reasons why people fail to achieve their financial goals.
They fail to reinvest
Many people who end up broke when they reach retirement age usually went through quite a bit of money when they were at their peak earning capacity. In fact, many of them even owned assets and had lots of investments. The problem is that they used these as mere piggy banks. Often they would just spend whatever cash these good investments generated. They failed to reinvest.
Even if you spend lots of money, if you reinvest, you might never run out of cash. Why? You keep buying assets that generate even more cash. It all centers on your ability to reinvest enough of your asset income so you always have a steady income flow.
They fail to set up a system
For far too many people, having enough cash left over for retirement is a matter of luck. Talk about a dangerous mentality. Don’t expect to get lucky when you need money the most. It will never come. Thanks to Murphy’s Law, the worst always happens at the time you want things to go right. Don’t rely on luck. Instead, set up a system for reinvesting. Set up a system for savings. Set up a system for investing. People don’t think in terms of systems or methods. As a result, many die broke.
They get too comfortable
Developing a sense of entitlement is the worst thing you can do when it comes to meeting your financial goals. Thinking, on a subconscious level, that you deserve to live like the way you’re living, and that you deserve the income that you’re getting can put you into a mental cocoon that can harm your financial health in the future. The reality is that you aren’t entitled to a certain lifestyle. You have to earn it. You have to work for it. In other words, stay hungry and never get too comfortable.