Millionaires pay cash for stuff that you or I would probably have to make payments on. That’s why I’ve never been able to understand how someone with so much could ever end up with so little. But the truth is, it doesn’t matter if you’re working a part-time job at a movie theater or raking in millions of dollars a year as a pro athlete. Some people just can’t manage their money. Here are three reasons why…
“I can worry about that later.”: Imagine this scenario: You just graduated college, you’re no longer delivering pizzas, and you just got your first full-time paycheck. How much of that check are you saving? Probably not a lot. You pay a couple of bills and then you get Uber Eats every night. Retirement feels so far away, why worry about it right now? It’s fun to have that mindset for a few months (especially when you don’t have a ton of bills to pay), but time flies, so if you put off your future for too long, you may find yourself in trouble.
“That’s awesome, I want it.”: No one would mind having a giant house with an enormous TV and a fancy car in the driveway. It would also be nice to throw a big hootenanny every weekend or spend ridiculous amounts of cash on things you definitely don’t need. But if you can’t afford it, you need to realize that you can’t afford it. It’s time to start operating at or below your means. Pay your bills. Put money away for your future. If you can be more responsible with your money and still save for some cool stuff, by all means have fun with it.
“Wait, what?”: Because of social media, most of us probably read, watch, or hear money tips all the time. But a lot of people are still just ignorant to the easy steps they need to take with their finances. If someone you know is unaware of the benefits of a 401k or Roth IRA, tell them about your retirement plans and let them know that it’s time they start planning for their future.