I have worked with very wealthy people and very poor people and one of the dividing lines that makes the difference is that wealthy people take the time to save a dime. The most precious resource that we have is time. And everyday we make decisions about how we want to spend our time and our money. We also have to live with the consequences of those decisions. Here are six common mistakes where people leave money on the table when they don't take the time.
1. When we don't take the time to find all of our receipts for our tax preparer, we leave money on the table. Keeping your finances organized is not a chore, it’s a money making activity. (No deductions equals no tax savings.)
2. When we don't take the time to shop for the proper mortgage, we leave money on the table. Many people didn’t shop for the best mortgage and ended up with adjustable rate mortgages that they knew nothing about and are in foreclosure now. Take the time to shop; it pays off. (Saving a quarter percent could possibly save you $6,000 on a $400,000 loan)
3. When we don't understand our 401K and fail to make tax deferred contributions, we leave money on the table. For every dollar we contribute to our 401k, we get money back in tax savings. You get to increase your retirement plan and increase your cash flow at the same time. (Less earnings get taxed so we get more back).
4. When we don't take the time to read that insurance policy we own and disaster strikes, we leave money on the table. Katrina victims who had good coverage were able to build at replacement value. If you didn’t have replacement value, then you only received what it cost you to buy. (No coverage means more out of pocket costs.)
5. When we don't take that bonus or refund check and add it to our retirement plan, we leave money on the table. (Not enough retirement funds equals a future lower standard of living.)
6. When we get the wrong kind of credit card because we don't take the time to read the fine print, we leave money on the table. Get the card with the best rates, the best cash rebates, and the best rewards. It pays to compare cards. (Higher interest means more cash out of your pocket.)
Stop making excuses for not having the time, and take advantage of using your time to increase your wealth. You must have a wealth building mindset to understand the importance of taking time to accumulate money. Most wealth starts with a penny here and a dollar there which grows into millions. Time is on your side if you are younger, then you can save small amounts to amass a fortune over a longer period of time. If you are older than you need to add larger amounts to build your nest egg over time. It doesn't matter when you start; it just matters that you get started. Wealth accumulation starts with simple steps.
Take the time- it's worth it!
Resource: http://www.isnare.com/?aid=301764&ca=Finances
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