There are many more than just eight reasons why people fail to get ahead financially. This is not meant to be an exhaustive list, yet these are some of my thoughts about why so many people continue to struggle financially.

1. Failure to Plan

You’ve all probably heard the saying that goes something like this, failure to plan is planning to fail. While this does cause one to stop and think, I don’t actually think anyone reading this site is deliberately planning to fail. The concern though, is not having a workable plan for improving your financial situation and thereby staying content with the status quo. Very few people wake up one day and are suddenly financially free and successful. If you haven’t already, take the time to develop a financial plan and start moving forward.

2. Focusing only on Yourself

If you look at charitable giving as money you could otherwise put to better use, you’re missing the point. By reaching out a helping hand and giving to others of your time and means you’re shifting your focus away from yourself. You will realize that it’s not the new flat panel TV and the hottest car that ultimately makes you happy. It’s much easier to control your spending in order to get ahead when the focus isn’t always on you.

3. Not Making Savings a Priority

How often have we all heard that we should start and maintain some sort of emergency fund. For one reason or another things just happen that we weren’t expecting. Your savings, or emergency fund, is one way to plan for the essentially unplannable. Make your savings regular or even automatic, and you’ll find that getting ahead is within reach.

4. Impatience

It’s no secret that we live in an On Demand society, but financial freedom and stability don’t play by these rules. You can’t be impatient and expect unreasonable results. Learn the virtue of patience and you’ll actually be surprised by the results.

5. Lack of Follow Through

This goes hand in hand with impatience. Once you’ve created a plan and set things in motion it’s imperative that you execute and follow through. Opening a savings or investment account and then failing to contribute after six months is a recipe for the same. Little adjustments here and there will be necessary along the way, but getting ahead is going to take some doing.

6. Underestimating the Little Things

How often have you heard others or even yourself say, “it’s only $x.xx”? I hate to break it to you, but all of those little things add up over time. Just $5 for lunch every day at work adds up to over $100 per month or over $1200 for the year. That just happens to be about the amount of the coming tax rebate. Just think, by saving just about $23 per week you could give yourself the equivalent of this tax rebate every year. The small things add up.

7. Have Now, Pay Later

It’s a depressing feeling when the bulk of your paycheck goes to pay for things that you don’t even remember buying. Because you have to have the latest gadget, you end up mortgaging your future earnings. How do you expect to get ahead and plan for the future when you’re constantly paying for the past?

8. Lack of Financial Knowledge

How can one contribute to a 401(k) if he doesn’t know what it is or how it works? Having a goal of a million dollars or so seems impossible if you don’t understand the principle of compounding. It’s also difficult to grow any semblance of a nest egg without at least a basic understanding of investing. Getting ahead will require some effort on your part, and that includes learning at least the basic tenets of financial management.

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