6 Signs You Are Not Ready to Be Wealthy

You might have a stable career and earn relatively well. However, are you stuck in your comfort zone or tired of just being "okay" financially, or do you yearn for more? 

If you've recently questioned whether you should strive for something more substantial, you're not alone. Many people reach a point in their financial journey where they feel like "okay" is settling and start feeling they want more.

Everyone wants to be wealthy, but wanting and being ready for it are very different. 

Being prepared for wealth involves not just wanting it but also having the knowledge, skills, and mindset necessary to accumulate it. This readiness includes financial literacy, managing money wisely, and understanding the potential challenges and responsibilities of building wealth.

With that in mind, do you think you are ready? This article will share six signs that show you might not be wealthy and what you can do to reverse course to achieve your dreams. 

Read Also: Spendaholics: How to Stop Spending Excess Money

You Don't Have Any Financial Goals

Becoming rich doesn't happen overnight; it's a strategic process that requires planning and effort. Rich people don't just become wealthy but rather create and follow a solid plan that matches their money goals. 

To be wealthy, you need to set clear financial goals to provide direction and establish timelines for achieving the great things you desire, like financial independence, buying homes, and starting businesses. 

Once you know your goals, you can create a solid financial plan that will act as a roadmap to building wealth. But without goals, you will lack direction to focus on, you won't be able to tell if you are on the right track or progressing, and you won't have the motivation to take the right steps toward achieving financial success.

Not having financial goals can lead to lifestyle inflation, where spending increases as your income increases but your savings/investments remain stagnant. Without goals, self-accountability diminishes, and you will be less likely to reach your full potential. Collectively, all these factors will prevent you from getting rich. 

Read Also: How to Set & Actually Achieve Your Financial Goals  

You Spend More Than You Earn 

When you live above your means, you are essentially using your income to maintain a lifestyle instead of building wealth. This can hurt your ability to accumulate assets and investments. The rich start by living below their means and saving and investing their disposable income.

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Living above your means involves spending more money than you earn. This behavior often indicates a lack of financial discipline, the inability to manage your money wisely, and are likely to accumulate debt to sustain your lifestyle. 

And as you know, high levels of debt can hinder your ability to build wealth since a significant portion of your income will go towards servicing loans rather than growing your assets.

While it's natural to want to enjoy some of the fruits of your labor, it's important to strike a balance between enjoying life today and securing your financial future. Instead of living beyond your means and wanting to appear rich, you should focus on actual wealth accumulation. And this requires making some sacrifices, such as: 

• Avoiding lifestyle inflation ‍
• Avoiding consumer loans and other bad debts 
• Budgeting, tracking your spending, and cutting back on discretionary expenses such as dining out, entertainment, or impulse purchases. 
• Delaying gratifications
• Avoiding peer pressure and keeping up with the Joneses

Read Also: 7 Uncomfortable Things You May Have To Do If You Want To Be Wealthy

You Prefer Saving Because “Investing is Too Risky”

There's no denying that to accumulate money, you'll need to spend less than you make and bank the difference. But saving isn't enough. You'll also need to invest your money where it will work for you.

Although investing poses multiple risks, it's important to recognise that risk is inherent in investing. Additionally, not investing can also be a risk to your financial future if you want to be rich. 

The fear of losing initial investment is what often draws people from investing. And the “you may not get back what you invest” and “past performance does not equal future results” disclaimers can quickly push beginners away. But to be rich, you need to learn how to conquer your fear of investing. 

Of course, that does not mean you should be overconfident and put all your money into instruments that promise the highest return. Rather, the goal is to balance the risk you're comfortable taking and the potential for growth that will help you achieve your long-term financial objectives.

And that requires education, proper financial planning, and a clear understanding of your risk tolerance and financial goals. Working with a financial advisor or planner can also help you make informed decisions that align with your risk comfort levels. 

Read Also: Ways to Invest When You Have a Low-Risk Tolerance

You Have a Scarcity Mentality 

Your mindset and what you think it takes to accumulate wealth define your level of success. Research shows that mindset accounts for 80% of success, with skills only contributing 20%. 

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So it is no coincidence that when you think, “I can’t be rich,” you will find it hard to be rich. Once you develop a pattern of negative self-talk you can use to hold yourself back, you will find it challenging to achieve anything because you have a scarcity mentality. And having a scarcity mindset will keep you poor.

But the good thing is you can change your mindset and develop an abundance mentality that will keep you optimistic, ensure you focus on growth, and help you identify opportunities that will take you closer to your goals. All you need to do is:

• Recognize the power of your thoughts and keep them positive!
• Be grateful for what you have and focus on it.
• Keep an open mind and realize there are endless opportunities.
• Start taking action that will help you achieve your full potential.

Read Also: Money Mindset: How a Scarcity Mentality is Making You Poor

You Don’t Have a Second (and a Third) Source of Income

While a job can provide stability and a steady income, relying solely on it can limit your financial growth and expose you to multiple risks. Having various sources of income offers numerous benefits, including enhanced financial security and the potential for building wealth.

Having more than one source of income also provides faster and more agile paths to get wealthy. Each new source will increase the total amount of money you make, creating an opportunity to scale.

The biggest misconception that typically holds people back and prevents them from exploring new sources of income is that they can't juggle their 9-5 with a side hustle. That's not true, and if you’re currently drawing money from only one source, it’s time to diversify your income. 

Here are ways to develop new sources of income without sacrificing your career:

1. Start offering consultation and coaching services.
2. Have a skill? Sell it online as a freelancer or capitalise on it by starting a side business.
3. Identify your passions and explore how to turn them into a profitable side business.
4. Invest in income-generating ventures like stocks, mutual funds, Saccos, real estate, etc. 
5. Start an online business.

You Think it Is Too Late To Be Wealthy 

Is your mind populated with these beliefs and questions?

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“I should've started sooner.”

“It’s too late. What is the point?”

“Everyone I know is much further ahead than I am. I’ll never be able to catch up with them.”

Sure, it’s true that if you had begun your journey earlier, you’d be in a better place today. But that doesn't mean you can't start now and get yourself somewhere. You need to get rid of your "I wish I had mentality" and start working towards your goals. 

There's a famous quote to get you into action, “The best time to plant a tree was 10 years ago.  The second-best time is today!” Don't be upset that you missed the “best” time to do something. You still have the opportunity and the time, and you should take advantage of them.

Here are some things you need to do:

• Stop procrastinating, you have done that for long enough. It is time for ACTIONS!
• Remember this is your journey, not anyone else’s, so stop comparing yourself with others.
• Understand your time horizon and invest accordingly. 
• Enjoy the journey; building wealth is not just about reaching a financial goal. It's also about finding fulfillment along the way.

Read Also: How to Make the Most Out of Your Money Amid the High Cost of Living

WRAPPING UP

Financial well-being is vital to a fulfilling life, yet many struggle to achieve it. The reason is often the money habits they have formed over time, their money mindset, and their inaction. If you want to be an exception, you need to drop everything holding you back and start working towards your goals. 

Awareness and a willingness to make positive changes can significantly improve your financial situation. Start by investing in personal growth, embracing new challenges, seeking opportunities, and improving your financial knowledge.