THE REASONS FOR FINANCIAL FAILURE

Craig Lock "Money can't buy you happiness. But it helps you to be miserable
in comfort."

Why do people not achieve financial success?

Reason One: Lack of knowledge: or more specifically, a lack of
desire to gain knowledge. Make the effort to read about
financial matters and you will learn. Many people don't know
where to go for unbiased advice so they do nothing.

Reason Two: Failure to set plans. Did you know that only 5
percent of the population sets goals and only 2 percent has any
form of written goals? Their actions have a sense of purpose:
they are results oriented, they are motivated, they are
positive. They are life's winners. Without a plan, it is easy
to drift aimlessly, and live from day to day. If you set goals,
you will know what you want to achieve.

Reason Three: Inefficient use of time and poor work habits.
Time is like money - you can spend it or invest it in building
a better you by self-development. When you waste time, you are
wasting yourself. Plan your day - what do you really want to
achieve today?

Reason Four: Lack of foresight. Achievers can look beyond the
immediate and into the future. Although some may see your
visions as dreams, do not forget that you have to have a dream
to make a dream come true. Unless you are fortunate enough to be
left a legacy, the only money you will ever have working for
you is what you save and invest. People with vision can
multiply their income by investing in growth investments. Work
for your money, then make your money work for you.

Reason Five: The need to conform. Dare to be different! Don't
be afraid to take calculated risks. The people who make big
money are the ones who do the opposite of what everyone else
does - sell when everyone else buys, and vice versa.

Reason Six: Poor debt management through excessive borrowing.
Many people have poor spending habits and having no budget. If
you borrow to buy things that lose value, with interest payments
you pay much more for the article than it cost initially.
(Especially new cars, furniture etc.)

Reason Seven: Lack of desire as a result of a poor attitude
about acquiring wealth. A ba attitude has caused more personal
problems than anything else. What we expect to happen usually
does. Successful people are optimists, while unsuccessful people
have a pessimistic attitude . Block out negative thoughts and
stereotypes and mix with successful, positive people.

Reason Eight: Inadequate protection against unforeseen events,
such as the loss of a home due to natural disaster or the death
or disablement of the bread winner. Adequate protection
(insurance) against these events is vital to financial success.
Not being properly covered has wiped out many potentially
financially successful people.

Reason Nine: Lack of discipline. Most people find it difficult
to save: it is easier to say yes than no. Those who lack
discipline to say "no" will find financial success an
impossible achievement. Many people are easily led by
advertising and the easy availability of credit.

Reason Ten: Procrastination. Many people put off a savings
program until it is too late. Young people have a wonderful
opportunity and advantage because they have time on their side.
The reasons people give for not starting a savings program are
varied, and many are genuine. People in their 20s are just
getting started in life and want to enjoy themselves by
spending on cars, stereos etc. People in their 30s have young
families and mortgages. People in their 40s say things are tough
with kids to put through college and unexpected medical
expenses. By the time people reach their 50s, it is too late:
there's no time left to accumulate capital through the magic of
compound interest. A convenient time never comes.

So what better time to start on your road to financial success

than

TODAY?

About the Author

Craig Lock has been involved in the personal finance field for
many years before becoming an author. This extract is from
Craig's MAD MONEY BOOK.
Craig's various books are available at:
http://www.nzenterprise.com/writer/books.html
http://www.novelty-gift.com/ebooks.html and
http://www.bridgeniche.com/CLOCK/zaniestbooks.htm