7 mental mistakes that prevent you from getting rich
The first step to gaining wealth is to get rid of preconceived ideas and bad mental habits that pull you down.
Which are these?
1. You’re just focusing on the near future
Do you know what people’s greatest regrets? The fact that they did not start saving earlier. Saving and investing money for 30 years is often overlooked in favor of spending money for an immediate need. Whether we are talking about a phone, a car or a house, it will always be something that seems more important than saving.
We place too much emphasis on what happens in the next few days and weeks and little emphasis on what will happen over a year … or, not to say, over 10 years.
2. You hate moments when you lose money
Studies show that the so-called ‘pain’ caused by losing money is more than twice as much as the pleasure we feel when we earn money.
This mental blockage often makes you make the wrong investment decisions and stop taking risks that would be worthwhile.
For example, a bet on throwing the coint, which would bring a $ 00 loss if the guesse is wrong. Although a $100 gain (chances 50-50) would make this bet a fair one, most people would only accept the bet if the win would be $200 or more.
3. You are overconfident
Often trust is the key to success, but there is a limit. The point is that not all of us can be better than the average.
When it comes to investing money, too much self-confidence makes people take risks that they later regret; makes us believe that we can “beat” the market and that we can invest large amounts of money in one thing, without diversifying it.
4. Try to rationalize the wrong decisions
Throughout your life you will make a series of financial mistakes. It’s a sure thing. What matters is how you will come back after these.
Instead of recognizing and correcting these mistakes, we will often try to invent reasons that make our mistakes decisions that seem rational.
Sometimes, the notion that “we’ve made a bad financial decision” might hit the idea of “I’m good at managing the money.” Instead of pretending it is not a big problem, it would be best to correct this and move on.
5. You get financial decisions based on emotions
While managing our money, we need to be aware that our goal is strictly a practical one – making money. In reality, however, we often make decisions for emotional reasons, and so we get into the situation where financial goals are affected by other things from our everyday life.
The conclusion? If you want to get rich, you have to make objective financial decisions, or at least avoid doing something about your money when you know that you are not in a very good emotional state.
6. You rely on what seems to be good
We often base our decisions on the information that comes out more clearly in our minds. For example, unlike a car crash, the crash of a plane is always a news story, so we are automatically more fearful of flying, even though they produce much less deaths than land-based accidents.
The same must be done in the case of our finances. We often read news about business people who have been enriched by successful investments, or people who have won the lottery. For this reason, it seems to us that winning the lottery or that succeeding to become successful business people is much easier than in reality.
Build your financial decisions on statistics and research, not on news or spectacular information.
7. You lack self-control
With so many opportunities to spend money, saving seems to be the last thing you want to do. However, it is necessary to start saving and investing as early as possible if you want to have at least a chance of enriching yourself.
A little financial discipline will help you a lot in the long run, and after all, you are the only one responsible for your own personal finances.