Wednesday, December 23, 2009

Ways to Keep from Growing Wealth

7 surefire ways to stay poor by Liz Pulliam Weston at shares seven money management issues that can keep people from accumulating wealth :

  • Spending too much of one's income on the large expenditures, e.g. rent/mortgage.

  • Confusing needs and wants.

  • Basing purchase decisions on monthly payments.

  • Failing to track the money flow.

  • Carrying credit card debt.

  • Living paycheck to paycheck.

  • Cashing out retirement accounts.
  • Overall, I agree with Ms. Weston. To me, these issues are money drains that can significant decrease wealth. Our personal solutions to these issues are to : 1)pay ourselves first, and 2)live below our means, which I shared in Strategies for Building Wealth and Retiring Early.

    For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

    This is not financial, budgeting or saving advice. Please consult a professional advisor.

    Copyright © 2009 Achievement Catalyst, LLC

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