Riding a bike through a series of potholes laid out like a game of Tic-Tac-Toe is far from ideal, which is why the most thriving and bike-friendly cities tend to have well-maintained roads. Similarly, the path to creating wealth should be as smooth and free of obstacles as possible. This means addressing mistakes as they come along instead of brushing a mishap off as a one-time thing. This type of behavior only leads to damaged and cracked roads, in which untold amounts of money can be sunk. Here’s a few potholes that might be lurking on your own wealth path:
Remember scrunchies? Or padded shoulders? What about that awful perm immortalized in your aunt’s yearbook photo? Exactly. Trends come and go in the blink of an eye, and sometimes all it takes is one celebrity spread in a magazine to shift the entire course of what is new and innovative. Due to these unpredictable and sudden changes, it’s often safer and much wiser for individuals to stick to more conservative investments rather than following flashy trending items. Think of things that most people use, like transportation and food, and go there.
Taking everyone at their word.
Investing in new business ventures based solely on a presentation or a few drinks is possibly one of the fastest ways to lose money. Just because a person is optimistic and creates a great presentation does not necessarily mean that he or she has the business know-how to back up his or her words. Ignore any personal feelings about that person and spend some time researching any new investments.
Dressing to impress.
Splurging on fast cars and fancy designer clothes can be an exciting thrill, but make sure those purchases are made with the right mindset. First off, these purchases are rarely the best decision when true wealth has yet to be reached, and, secondly, they can be even more disastrous when made in order to impress someone else. Accumulating wealth should be a personal pursuit, and involving others’ ideals and opinions can make for a difficult path.
Just because rushing out to blow money on expensive luxuries is not the best idea while at the start of accumulating wealth, it certainly does not mean that your train of thought should remain fiscally conservative. Thinking wealthy can actually lead to better, more responsible decisions that can increase net worth and open up new opportunities to accumulate wealth.
So how is your own path looking? If some potholes have accumulated in it, then it is time to go back and fix them before continuing forward.