A few months ago I wrote an article entitled, 4 Reasons You’re Not Rich. Today I’m going to continue on this theme with 4 reasons that you’re not getting ahead.

1. Credit Cards

A good portion of the population has credit card debt. What’s even more unsettling is that many people consider at least some level of consumer debt to be “normal”. There’s already been plenty written about how to combat this problem, but even if you pay off your credit cards every month, they can still keep you from getting ahead. It’s incredibly easy to spend money with these cards. If you’re not careful, you’ll end up spending more than you would have otherwise. In this scenario, you’re losing money that you could have saved or invested instead. Just paying off your cards every month isn’t enough. You still need to watch how much you’re really spending.

2. Lack of Planning

Even when you have a budget and think that you’re monthly expenses are covered, you can still run into problems. Do you remember the insurance premiums that come due every six months, or does it always set you back a little. What about car inspections and registrations that occur once a year or so? It also wouldn’t be a bad idea to think about Christmas in July. For some reason, this yearly holiday seems to blindside people financially. You know it’s coming; plan for it.

3. The Save then Spend Mentality

This typically wouldn’t be considered something that would keep you from getting ahead. It’s good to save and not buy on credit, right? The problem arises when you save a decent sum and then go spend it all to buy a car or take a “much needed” vacation. This actually isn’t any different from spending everything you earn. If you’re continually spending all your savings, you won’t get ahead.

4. Impatience and Lack of Follow Through

When one begins to invest, the investors continued contributions are the main reason that the account balances go up. Investment gains tend to increase exponentially, and the investment returns don’t begin to trump the contributions for quite some time. Too often, people don’t see the immediate benefit of investing and they either stop contributing or withdraw everything all together. In order to get ahead, be patient and let the power of compounding work it’s magic.

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