ElevenLabs_2024-10-04T07_11_27_Chris_pre_s64_sb78_se20_b_m2

Most people struggle financially because they lack financial education, live beyond their means, fear taking risks, prioritize immediate gratification, have inadequate savings, and make poor investment decisions. These factors prevent them from building wealth and achieving financial freedom. It's important to educate oneself, budget, save, invest wisely, and make informed decisions to break free from financial struggles. A little uncomfortable, but absolutely necessary. Do you know why most people will never be rich? Hold on, before you hit that exit button, which probably you might be thinking of, this isn't about throwing shade or discouraging you from chasing your dreams. In fact, it's quite the opposite. This is all about getting real with ourselves and understanding the key reasons why so many people struggle financially. And more importantly, what you can do to avoid these pitfalls. Let's be honest, everyone wants financial freedom to not stress over bills or to have the luxury to enjoy life on their own terms. But here's the truth, most people never reach that level of wealth. Why? It's not just bad luck or circumstances. It's often rooted in habits, mindset, and decisions that we don't even realize are holding us back. So if you're someone who's tired of living paycheck to paycheck, or you're ready to take control of your financial future, this video is for you. We're going to break down the common mistakes people make, the mindset traps that keep them stuck, and the steps you can take to break free from the cycle. Grab a pen, take some notes, because by the end of this video, you'll have the tools and insights to make sure you're not just another statistic. Eager to up your financial game? Let's dive right into it. One, lack of financial education. Most people simply don't know enough about personal finance. Schools often skip over this crucial subject. So a lot of us grow up not knowing how to budget, save, or invest properly. Imagine trying to drive without knowing the rules of the road. It's a disaster waiting to happen. The same goes for your finances. Without basic knowledge about managing money, you're bound to make costly mistakes. The good news is that financial education is more accessible than ever. There are books, online courses, and even YouTube channels like this one that break down financial concepts in simple terms. Many people don't understand compound interest. But the sooner you grasp this concept, the sooner you can start benefiting from it. Think of it as earning interest on your interest. Over time, even small investments can grow into large sums if you let them compound. Two, living beyond their means. This one is huge. A lot of people spend more than they earn, either by maxing out credit cards or taking on unnecessary debt. The problem with this is that it makes it nearly impossible to save or invest, which are the key ingredients for building wealth. Let's look at the story of Mike Tyson. At his peak, Tyson earned over $300 million, yet he ended up bankrupt. Why? Because he lived far beyond his means. Tyson had mansions, exotic pets, and a lavish lifestyle that eventually caught up with him. The takeaway? No matter how much you make, living beyond your means will always lead to financial disaster. Three, fear of taking risks. Building wealth often requires taking calculated risks, whether that's investing in the stock market, starting a business, or diving into real estate. But many people are too afraid to step outside their comfort zones. They prefer the safety of keeping their money in a savings account, where it earns little to no interest. Look at the difference between investing in stocks versus leaving money in a savings account. Over a decade, the stock market has historically provided average returns of around 7 to 10%. In contrast, most savings accounts offer less than 1%. By avoiding risks, you're also missing out on potential rewards. Four, immediate gratification. We live in a world where instant gratification rules. People want things now, whether it's the latest iPhone, a fancy vacation, or that new designer bag. The problem? This mindset keeps people from building wealth. Let's take Warren Buffett, one of the world's wealthiest people. Buffett is a huge advocate for delayed gratification. When he first started investing, he didn't splurge on luxury items. Instead, he reinvested his earnings and watched them grow over time. By putting off short-term pleasures, he was able to amass billions. Five, inadequate savings. Saving money is the foundation of wealth building, but many people simply don't save enough. Without a solid savings plan, you're vulnerable to financial emergencies, which can easily wipe out any progress you've made. Let's say you're not saving regularly and your car breaks down. If you don't have an emergency fund, you might need to rely on credit cards or loans, putting you further into debt. This is why saving is so important. It's your financial safety net. Six, poor investment decisions. Even when people do invest, many make poor decisions because they don't do enough research. They jump into risky ventures or fall for scams, losing money that could have been used to build wealth more sustainably. Remember the dot-com bubble? In the early 2000s, many people invested in internet companies without understanding the risks.