Why Your Actions Make You Poor

Posted on 25. Jan, 2012 by in Wealth Essentials

Take action

How quickly do you take action?

Do you get things done no matter what, or are you selective about the the things you do?  How about difficult or boring tasks like filing bank statements and keeping the rest of your financial paperwork in order, doing jobs around the house, or getting started on your goals for the year ahead?

How quickly do you action the easy stuff, like recording your favourite TV show, accepting an invitation to drinks or taking advantage of a weekend sale?

I bet I could guess which ones you take action on first and those that may not even get done at all.  I have the same aversion, I hate doing boring stuff that feels like it adds nothing to my overall wealth.

File my banks statements, or do pretty much anything else? I know which one I’d choose!

Why your actions matter

I think that everyone lets a few things slide every once in a while.  That’s cool, we all need to take a break, but if you do it continuously it becomes a habit.  Your actions are important, not only for getting things done in the short term, but also for what happens over the long term as well.

You may not think that your lack of desire to do something with your mail has any impact whatsoever on your personal finances, but it does.  By putting off the things you don’t really want to do, you develop a mindset and begin to apply it to other things that are similarly uninspiring.

How your actions can make you rich

I know that it is hard to believe that filing your bank statements can make you rich, but by doing it you are taking positive action and creating the right mindset.

Filing one bank statement leads to filing an insurance bill, this results in you reviewing your outgoing costs and investigating alternatives.  You realise you can save money and then divert the difference to your home loan, retirement fund or share portfolio.

Over time, these small actions can make a huge difference.

At the most basic level, financial wealth creation is about making money work for you.  The more you have working, the better off you will be.  Money doesn’t do this by itself, it needs to be accumulated and directed to the right place, then it needs checking up on every once in a while (not that often really).

The path to financial wealth doesn’t have to be labour intensive, but in order to be successful you do need to take action and develop good habits.  With a little practice and some efficient systems, all those little annoying jobs become pretty easy and you still have plenty of time to do the fun stuff as well.

What are you putting off and how will you take action?

Image by Ѕolo

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24 Responses to “Why Your Actions Make You Poor”

  1. Pam at MoneyTrailNo Gravatar

    26. Jan, 2012

    Downloading our credit card statements into our budget is one of my least favorite things to do. I have to make myself do it on a regular basis but it is ultimately very helpful for keeping us on track.

    Reply to this comment
    • Money CactusNo Gravatar

      26. Jan, 2012

      Definitely a taks I would hate to do too, but as you say it is also very helpful to your budget. Nice work keeping up with it Pam, it is the kind of thing that would be easy to let slip.

      Reply to this comment
  2. Doctor StockNo Gravatar

    26. Jan, 2012

    I feel for people who are interested in investing, but haven’t actually invested anything yet. It seems once we begin talking, we discover they do have money they can invest… and if they can, they will make money with some wise principles to follow.

    Actions and inaction can make people poor. You raise some good points too! Thanks.

    Reply to this comment
    • Money CactusNo Gravatar

      26. Jan, 2012

      I like that you point out that both action AND inaction can make people poor, because it is so true. I wrote a post a little while ago about doing nothing to grow rich, it was about not doing certain things which had negative impacts on your personal finances.

      Reply to this comment
  3. maria@moneyprincipleNo Gravatar

    28. Jan, 2012

    Inaction is a kind action, isn’t it? Action is absolutely essential but what I often wonder is which one comes first: menatlity or action. A bit of ‘chicken and egg’ problem, I am afraid, but even in therapy different access points are used (thinking, emotions or actions).

    Reply to this comment
    • Money CactusNo Gravatar

      31. Jan, 2012

      Inaction can definitely be a kind of action. I think that many of us do before we think, often it’s the reason we make mistakes, so long as we learn from them!

      Reply to this comment
  4. Name (required)No Gravatar

    29. Jan, 2012

    That is true. As an author and business man, I can relate to how you said, “I know that it is hard to believe that filing your bank statements can make you rich, but by doing it you are taking positive action and creating the right mindset.
    “. I hope more people discover your blog because you really know what you’re talking about. Can’t wait to read more from you!

    Reply to this comment
  5. I have the bad habit that I sometimes postpone the intensive, time-taking things that just do not like to do that much. It is easy to fill your days with the small time-stealing tasks that need to be done, instead of putting some real thought into doing something new. Thus I am aware of this and just push myself continuously to prioritize the important things, not just the easy ones.

    Reply to this comment
  6. I’m putting off doing my taxes. I have all the forms saved, I just have to mail them off to my preparer (my dad). This is my first year working as a freelance writer, and I’m terrified I’ll owe Uncle Sam!

    Reply to this comment
  7. I am terrible at balancing my check book. We always have enough money in there, but I hate not knowing exactly how much I have.

    Reply to this comment
  8. mbhunterNo Gravatar

    13. Feb, 2012

    Oh man, this is a soft spot for me. I still need to work on getting my finances in order. We don’t go nuts with expenses and that keeps us out of too much trouble, but I know it’s affecting our long-term finances not having detailed control.

    Reply to this comment
  9. BrettNo Gravatar

    24. Feb, 2012

    My top tip is to focus on making money, rather than on saving it.

    Reply to this comment
  10. Financial SamuraiNo Gravatar

    12. Apr, 2012

    Small actions definitely compound over time, good and bad!

    I was putting off figuring out how to take the next journey in my career life. I figured it out and am balls to the wall going for it now!

    Reply to this comment

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