Wouldn’t it be great to be able to live the life you have always dreamed of living?
Unfortunately, very few people ever get to live the life of their dreams – even those who win the lottery only get a temporary opportunity to live the life of their dreams because they have a tendency to blow all their winnings relatively quickly!
As I’m writing this two days into a New Year (2013), I’ve been giving some thought to this topic recently and I’ve come up with a list of reasons why most people will never live the life they dream of.
My reason for doing this was to help you to fix this problem (if it applies to you) and because my analytical problem-solving brain needs to understand a problem first before it can come up with a solution.
I’ll get to the solution later, so let’s start with the reasons…
1. You’re not in the habit of saving regularly
According to a recent article on CNN Money:
- only 25% of Americans have sufficient savings to cover 6 months worth of expenses
- 49% of Americans don’t have enough money saved to cover 3 months worth of expenses
- 28% of Americans don’t have any savings whatsoever
- 43% of Americans go cashless for a week
Whilst many argue that they can’t afford to save, Greg McBride of Bankrate.com says that “the biggest barrier to saving is not being in the habit of saving” and suggests that “by establishing that habit, even if an unplanned expense comes up and wipes out what you’ve accumulated, you’re only one paycheck away from restarting the saving process.”
It would be bad enough if this just applied to Americans, but it doesn’t.
If you live in the UK, 21% of Britons have no savings or investments at all. Of the 79% that do, 35% have less than £500 saved and 36% have between £500 and £10,000.
This evidence suggests that the vast majority of people are living from day to day, which is very unlikely to lead to the land of your dreams!
2. You don’t know what you want from your life
It’s a bit of a cliché but if you want to travel towards a particular destination, then you need to know where you want to travel to before you set off.
If you let your destination evolve while you travel, you run the risk of setting off in completely the wrong direction.
At best, if you correct your direction en-route, you will end up taking a detour or backtracking, both of which waste valuable time.
3. You don’t have a plan
If you know your destination, but you don’t have a plan or map to get you there, then you run the risk of getting lost along your way.
This will undoubtedly result in delays as you take more detours, travel down dead-end streets, get yourself lost, etc.
This is particularly acute if you are trying to get to somewhere that you’ve never been before.
4. You don’t have a strategy
If you know how much money you need to invest and by when but you don’t know what you’re going to invest in and what kind of returns you can expect, then you’ve got another problem.
That’s like deciding that you want to cross the sea but you’ve got no idea what modes of transport are available, how fast they can travel, how to buy a ticket, how much they cost, etc.
5. You’re doing stuff but it’s not working fast enough
Saving and investing are not the same thing (see here).
Even if you are investing as well as saving, it is likely that you are following the advice of those in the Financial Services industry such as Independent Financial Advisors, Bankers, Fund Managers.
I’ve said elsewhere that these people have created an industry to feed themselves, feeding on those who don’t understand or don’t want to manage their own investments.
If I’ve just described your approach to investing, then I hope you’ve got shed loads of cash to feed the schiesters and still have enough money left over for yourself.
6. You’ve recognized you need to take more control of your investments but you don’t know how
The Financial Services industry has got rather adept at making you feel small and incapable in order to encourage you to hand over your cash to them to invest on your behalf.
If you fall for their patter, you’ll be feeding them before you feed yourself and waste lots of your cash in the process.
It was Benjamin Franklin who said
An investment in knowledge always pays the best interest.
Ignore his sage advice at your peril.
7. You’ve already tried managing your own investments and failed
I never said that managing your own investments was easy but you can do it.
What is certain is that you will make mistakes as you learn because mistakes are an essential part of any learning process.
Think of your incremental mistakes as learning, rather than failures.
You can only really fail if you give up – unfortunately, this it what most people do.
8. You feel overloaded with conflicting information
Investing can be a complex subject and like anything where money is involved, there’s lots of information out there for you to read.
Much of that information conflicts so it takes you time to read and re-read and sort out the wheat from the chaff.
Unfortunately, you don’t have the time, even if you can understand and de-code it.
Those “nice” Financial Services people have “simplified” it for you by creating a world of jargon all of their own to keep people like you out of their clique.
So you just hand over your money again – lovely jubbly!
9. You want help but don’t know who to trust
You’ve been spooked by all the recent stuff about greedy bankers, IFAs not really being independent after all, mortgage endowment scandals, insurance mis-selling, etc.
Unfortunately you don’t know of a better alternative, so you follow all the other lemmings over the cliff and hand your money over to the Financial Services industry again.
You’re not happy about it but it’s strength in numbers, eh!?!?
10. You don’t want to be a City whiz-kid
Whenever you read the financial pages of a newspaper or listen to the financial news on the television, you get the impression that you need to be a financial whiz-kid to invest in company shares.
That’s not you is it – you’re just an ordinary Joe or Jo!
All you want is to put some of your money into something that can give you a better rate of return than earning peanuts on your savings – why should you have to fraternize with City whiz-kids to do it?
11. You don’t believe you deserve to live the life of your dreams
All the above has worn you down over the years hasn’t it – you and everyone else!
This is the killer reason and is the real reason that you don’t try or don’t persist with taking control of your own investments.
You’ve settled for what you’ve got, just like your parents did and their parents did, etc.
You’re not happy with that but you’re doing okay – so who are you to want more when there are so many more people in the world worse off than you!
What To Do About It (Your Solution)
If you want to achieve YOUR dreams and live the life YOU want, then you need to start VALUING yourself, your life and your dreams more than you have up to this point.
If you want it enough, then you can and will find a way of making it happen for you.
And what’s more – YOU DESERVE IT!
And that’s why I’m going to make it easy for you.
To access my solution, click here.