What Holds You Back from Becoming Financially Independent?

Let's look at some key factors that stand in the way of many people seeking financial independence.

1. The "Dilly Dally" effect - Too many of us are always putting off the necessary changes that need to be made regarding how we manage our money. I often talk about automating money from your paycheck into a brokerage account each week so you are positioned to get money to work for you in income-producing dividend stocks.

2. Overspending - We all know someone that overindulges on the latest tech gadget or fashion piece. Unfortunately, this is part of an overall addiction that has been built up and is tough to snap. If you are around a group of people that just worship at the altar of Tommy Hilfiger and Polo Ralph Lauren, it tends to be impossible to not want to feel "left behind." Friends and family have a big impact as to how you will perceive money.

3. Slow to Pay off Debts - Spending with plastic is easy, but once the "minimum due" invoices come in, you start the bad process of extending out your debt every month. Credit card companies just love this and you become a slave to their process in no time.

4. Trying to Get Rich Quick - often times this is the disaster event that knocks someone's finances for a loop. The no-brainer business/stock investment with a friend who promises they have the golden ticket to riches. The sure and steady way is to get compound interest to work as your weapon.

A wealthy friend and I were talking about finances.. We discussed the options if you are older and have not saved a dime yet. Let's say you just turned 50 and you looked at your income statement and there is nothing but a $0 at the bottom of the page. You actually still have plenty of time to build a solid nest egg. For instance, you can start maxing out retirement plan by putting into it as much as you can afford. If you were to invest $5K per year for every year in your 50s, each $5K you invest would turn into more than $40K after 20 years (Based on an historical 11+% average annual return by trading our Instant Income Guaranteed plan. So, you see, it's never too late to get started as long as you're investing in the right strategy.

5. Being Clueless About Money Issues - This shortcoming is a trap that tends to affect people with a high net worth more often than you may think. Often times, people inherit bad financial sense from an older parent or relative. It's sort of the "it worked for them, why should I question it?" mentality. The famous Bernie Madoff scandal illustrates this point to the tee. Many wealthy people were blind to the problems in Madoff's scheme that should have raised obvious red flags. What really struck me was that his clients were not allowed to question Bernie Madoff about his strategy or anything related to his investments. If an advisor EVER requires conditions like those to handle your money, run -- don't walk -- out of his or her office and never go back. The other big red flag was that Madoff's investment returns were as steady as they came, regardless of the market's returns. No one who operates "on the level" in this business will be able to achieve those kinds of results. Having a quality money manager is all well and good -- just make sure you understand where your money is going.

6. Investing in Areas You Don't Understand - Ignorance is a huge problem for individual investors. Whether it's being a silent partner in a business you know nothing about, or buying high-risk penny stocks, investing money in areas you don't understand will almost always come back to haunt you. Far too many investors think buying businesses and having others run them will be an easy way to grow their financial net worth, but many don't realize businesses tend to do better when the owners are more hands-on. Passive investing is very over-rated. There are tons of books that make it sound so simple though! Buy a business, hire people, show up at the end of the day and count up the register. Ha! If it only was that easy. When it comes to financial advisors pushing new investment products, you need to do your own due diligence so you are not being sold products that are commission-friendly instead of positive returns-friendly.

7. Letting Fear Paralyze Your Investment Goals - Much of the blame for this shortcoming lies in focusing too much on the day-to-day (or minute-to-minute) happenings in the markets. Watch any of the big business TV channels, or websites and you will be fed numerous storylines about why now is the time and now isn't the time to be in the markets. We always advise readers to turn down the volume for the most part on the various pundits that grace the screen on any given market day. Doing nothing is as risky as doing something, especially when the banks are paying little in the way of interest (savings accounts, CDs, etc.). Your wealth will continue to deteriorate if you don't start to acquire income-producing assets. Taxes and inflation (despite what the government says, prices ARE higher for many everyday items) will chew up accounts of the savers.

8. Ignoring Reality - You don't have to look far to see the mess many currently face when it comes to real estate and foreclosures. Throw in a tough jobs market as well, and many are financially ill-prepared for the coming years. Facing a crisis head-on is the only way struggling citizens will be able to get back on their feet. Sometimes you have to rebuild and start fresh in life. You have to dig down deep. I know it's tougher to do than to say, but many have come back full-circle from huge financial setbacks. The more you want to help yourself, the more you will see that people will want to help you. Communication is a must for all that stand to be affected. Your spouse and especially your kids may not show their concerns all the time, but don't overlook how financial struggles affect them. The example you set during times of trouble will be what shapes your legacy -- perhaps even more so than what you do once you've become financially successful again.

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Master Trader Joe Ross wants you to learn trading and he created products to do just that, teach you how to trade. Go to our website to find which ones best fit your trading style. Check out "Our Philosophy".