4. Not Knowing Income and Expenses
Not knowing your own financial incoming and outgoings is a common mistake that people make and is what prevents you from getting rich.
Until you know where you are, you can’t determine where you want to go. It’s that simple.
By using any popular financial tracking app, you can get a snapshot of your finances at any given time. This allows you to monitor your spending habits and make the necessary adjustments as you go along.
The typical financially incompetent individual will never monitor their finances and be surprised whenever they check their bank balance. This is the epitome of living paycheck to paycheck and is a surefire way to stay poor.
Most people don’t want to look at their finances because it always brings them pain. However, if you do it regularly, say every three months, you can start to adjust your habits, as seeing all your financial assets in black and white really does trigger you to take action.
Mastering this is the difference between those who build wealth and those who dream of it.