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Millionaires Don’t Make These Mistakes

“The primary difference between the wealthy and the rest of us is that they’re in control of their money – they don’t let money control them,” says Jaime Tardy, a business coach and author of The Eventual Millionaire, who has interviewed more than 150 millionaires on how they accumulated their wealth.

The wealthy weren’t born with the financial skills they use to achieve their status; they learned them and willingly do the things that others won’t do. We can learn what not to do from the wealthy:

Ignore the facts – It can be tempting to just drift along and not pay enough attention to bank, credit card and investment statements. How can you stay on top of your finances if you don’t really know what they are? Learn how to balance your bank account; know what your spending amounts are on your credit cards; and, review investment statements. Not being aware can lead to bad money decisions, excessive debt and perhaps ending up flat broke in retirement.

Overspend – The wealthy became that way because they’re better at keeping their money than spending it. We are bombarded daily by easy financing schemes for the purchase or lease of just about anything. It is so easy to get sucked into that “low monthly payment” for something we really can’t afford. If your outgo exceeds your income, your upkeep will be your downfall.

Neglect to adjust finances – A big life event occurs but financial decisions are put off. Say you got married but didn’t update your will or add your new spouse to bank accounts. Or got divorced and didn’t change beneficiary designations or remove them from the will. Or kept on the same spending pace when there has been a reduction or stoppage of income. The consequences can be very costly.

Pay unnecessary fees – By not paying close enough attention to your financial situation, you could end up paying fees for a bank overdraft or penalties for late payments. Carrying a balance on a credit card is very good for the bank but not for your financial future.

Obsess over price – Buying a cheaper used car can actually cost more in the long run because of extra repairs and poor fuel consumption. Not spending enough for something can be worse that paying too much because it won’t do the job you wanted it to do and you’ll just have to replace it. The wealthy know that quality costs a little bit more, but is a better value because it lasts longer. Don’t confuse value, though, with overpriced luxury.

Trying to keep up – So many things today change so rapidly that it’s virtually impossible to always have the latest and greatest. You won’t find the wealthy standing in line for days to get the next iPhone. If it’s still functional, why replace it?

Avoid income opportunities – It may seem logical to find ways to save money or reduce expenses to get ahead. This usually makes a relatively small difference for a short period of time. The wealthy will forgo lifestyle expenditures until they have an income source to pay for them, like seeking out a pay raise or investing in something that will generate an ongoing income to pay for the lifestyle expense.

Learn From The Wealthy – because it’s the responsible thing to do! Call today!

Canada Retirement Information Centre

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(613) 225-2020 Toll Free 1-800-524-7743