To be clear, when I say “rich,” I’m not talking about a level of wealth that’s generational or stolen by politicians from working- and middle-class people across the country.
What we’re really talking about here is financial security, and the ability to have a little bit more in your bank account than you need every month. Obviously, this often feels like a privilege in modern-day Britain, especially living in a system that’s stacked against us. However, if you have a decent paying job but are still coming up short all the time, here’s what may be happening.
1. You’re living beyond your means.
If you’re spending more than you earn, it’s pretty much impossible to build wealth. This might mean buying things you can’t afford, eating out too often, or living in a place that’s stretching your budget. To change this, start tracking your expenses and look for areas where you can cut back. Create a budget that allows you to live comfortably while still saving a portion of your income. Remember, living below your means doesn’t mean living poorly — it’s about making smart choices with your money.
2. You don’t have a solid financial plan.
Getting rich rarely happens accidentally. If you don’t have a clear plan for your money, you’re likely to spend it as it comes in. Take some time to set financial goals, both short-term and long-term. This might include saving for emergencies, investing for retirement, or planning for major purchases. Once you have goals, create a step-by-step plan to reach them. Review and adjust your plan regularly to keep yourself on track.
3. You’re not investing wisely.
Saving money is good, but investing is how you grow wealth over time. If you’re keeping all your money in a low-interest savings account, you’re missing out on potential growth. Learn about different investment options like stocks, bonds, and real estate. Start small if you’re nervous, but start somewhere. Remember to diversify your investments to spread out risk. If you’re not sure where to begin, consider talking to a financial advisor.
4. You’re stuck in a low-paying job.
If your income is low, it’s going to be harder to build wealth. This doesn’t mean you need to become a CEO overnight, but it might be time to look for ways to increase your earning potential. This could mean asking for a raise, looking for a better-paying job, or developing new skills that are in high demand. Consider starting a side hustle to supplement your income. Remember, it’s not just about how much you make, but also how much you keep.
5. You have too much debt.
High-interest debt, like credit card balances, can eat away at your wealth-building potential. If a big chunk of your income is going towards debt payments, you’ll struggle to save and invest. Focus on paying off high-interest debt as quickly as possible. Consider strategies like the debt avalanche method (paying off highest interest debt first) or debt consolidation. Once you’re debt-free, redirect those payments into savings and investments.
6. You’re not educating yourself about money.
Financial literacy is crucial for building wealth, but it’s not something we’re usually taught in school. If you don’t understand how money works, you’re likely to make poor financial decisions. Start reading books on personal finance, follow financial blogs, or take online courses. Learn about budgeting, investing, taxes, and retirement planning. The more you know, the better equipped you’ll be to make smart money moves.
7. You’re letting lifestyle inflation creep in.
As your income increases, it’s tempting to upgrade your lifestyle. Suddenly, you “need” a fancier car or a bigger house. This lifestyle inflation can prevent you from building wealth, even as your income grows. Try to resist the urge to spend more just because you’re earning more. Instead, use income increases as an opportunity to boost your savings and investments. Enjoy some lifestyle upgrades, but keep them in proportion to your income growth.
8. You’re not taking calculated risks.
Building wealth often requires taking some risks. If you’re playing it too safe with your career or your investments, you might be limiting your potential for growth. This doesn’t mean being reckless, but rather taking calculated risks. This could mean starting a business, investing in stocks rather than just bonds, or making a career change. Assess the potential rewards against the risks, and be willing to step out of your comfort zone sometimes.
9. You’re not patient enough.
Source: Unsplash Getting rich usually doesn’t happen overnight. If you’re looking for quick fixes or get-rich-quick schemes, you’re likely to be disappointed (and possibly scammed). Building wealth takes time and consistency. It’s about making good financial decisions day after day, year after year. Stay focused on your long-term goals and don’t get discouraged if you don’t see immediate results. Remember, even small steps in the right direction add up over time.
10. You’re not leveraging your skills and talents.
Source: Unsplash You might have valuable skills or talents that you’re not fully utilising. Think about what you’re good at and how you could potentially monetise it. Could you freelance on the side? Start a YouTube channel? Teach other people your skills? Your unique abilities could be the key to increasing your income and building wealth. Don’t underestimate what you have to offer — there’s likely someone out there willing to pay for your expertise.
11. You’re not networking effectively.
Who you know can be just as important as what you know when it comes to building wealth. If you’re not actively networking and building relationships, you might be missing out on opportunities. Attend industry events, join professional organisations, or simply reach out to people you admire. Building a strong network can lead to job opportunities, business partnerships, or valuable advice that can help you on your path to wealth.
12. You’re letting fear hold you back.
Fear of failure, fear of risk, or even fear of success can prevent you from taking the steps necessary to build wealth. Maybe you’re afraid to invest because you might lose money, or you’re scared to start a business because it might fail. While it’s natural to feel fear, don’t let it paralyse you. Educate yourself to reduce uncertainty, start small to build confidence, and remember that most wealthy people have faced and overcome fears on their journey.
13. You’re not prioritising your financial health.
If you’re putting everyone else’s needs before your own financial well-being, you’re unlikely to build significant wealth. This might mean always picking up the tab, lending money you can’t afford to lose, or neglecting your savings to help people. While generosity is admirable, remember that you need to secure your own financial oxygen mask before helping people. Prioritise your financial health, and you’ll be in a better position to help everyone else in the long run.
