In my work with clients as a financial planner and during my search for personal finance books I wrote, I have identified what I believe are the five reasons why a lot of key people not getting richer at all. What follows is a description of these five financial mistakes. Not all may apply to your own personal financial plan, but I hope you will find at least a couple of useful nuggets as article.1 read this – you don 't really understand that the inflationIt is a fact of life that bad things get over time more expensive. This is measured by inflation, and every month we said the official inflation rate. These are in two flavors – the index of retail prices (RPI) and consumer price index (CPI). Both measure the change in the cost of a basket of goods and services. The government uses the latest, the CPI, as their main measure of inflation for. Since books are about 2% a year. The RPI inflation is around the level of 4% at the moment. It is easy to consider a figure of the annual inflation of 2% and not get too emotional about this. Assumed that remains today to 2%, the  £ 1 loaf of bread that you buy at the supermarket this morning the cost  £ 1.22 in 2018. It 's an increase, but you can probably live with given the nature of this gradual change in prices. What you may not realize that the official inflation figures of government are largely insignificant to a personal level. Your own experience in price inflation is likely to be very different from the official version because we all have different patterns of expenditure. This could explain why all inflationary increases in your earnings are quickly eaten up by rising cost of living. Ask a few minutes to calculate your personal inflation rate using this computer in the office of national statistics. Will give a figure to work with what you use when you are negotiating wage increases or are developing your business plan for the year ahead.2 – earn more to spend moreTrying to continue with the Joneses might come keeping you back from getting richer. It's so overwhelming desire to buy a new television, a TV screen or plan a Caribbean festival which renders them unable to pay off debt and build your financial resources. This was described as' affluenza ', a mixture dell'affluenza and riossidazione. In his book, the British psychologist Oliver James has argued that there is a correlation between increasing levels of affluence and the resulting increase in inequality material. Turnout is what it is to mess up the things we want with things we really need and what is preventing many people to become richer. In theory, the wealth of construction should be easy. If you have a certain level of expenditure today then ever that your earnings increase, as tend to be with age and experience, you will have more surplus income. But that's just theory. In practice, earn more in order to spend more. The open inflate quickly to match (or exceed) your new income level. Continuing with the Joneses is what is keeping out of wealth.3 – you don 't follows an investment that long-term global volatility strategyRecent's stock market has reminded many investors about the importance of having a strategy long-term investment – and to attack it. Falls short duration in the value of your investments are virtually irrelevant when you leave ten or twenty years until you reach your financial goal. He usually meaning sit heavily and drive out the storm. The alternative to what follows an investment strategy in the long term, of course, is simply reacting to what is happening in markets. Many investors are working on that basis. Let panic when prices immerse and sell their investment as possible in the worst cases. These are the same that investors buy the shares only when values are rising steeply, the wagon usually lacking (and the best investment profits) in the process. If you want to become richer then there is no substitute for having a written financial plan and stick to it. By matching your investment decision to your financial goals that will react to market conditions based on logic rather than emotions.4 – pass the time on trivial things and neglected the stuffHow very important that attention actually makes it pays to financial transactions in the most important your life? A certain recent query from a Web site's personal finances has discovered that we spend twice the long-term planning our holidays as we take account of our mortgage. Research has found that more than one third of the British move at least ten hours selecting their ideal holiday but only 21% would put the same time in choosing the mortgage. There could be many reasons for this lack of focus on the most important areas of your personal financial plan. Taking a step back for a minute and considering where you can add the greatest value to your wealth, you can determine how much time should be spent on various financial transactions. The largest financial transactions are likely to lead to larger reductions in costs. For example, your mortgage is usually a good place to start simply because it is often the biggest debt ever had in your life. Able to make even a small difference to the interest rate can lead to significant savings. With up to 1.4 million mortgages fineare arrival at a bargain rate fixed in the next twelve months, this should be a priority for many households.5 – think the price is more important than the foolish of valueA knows the price of everything and the value of nothing. When getting your financial decisions based purely on price was reducing the probability of wealth long-term costs. The money savings on the purchase price of an item or service are only part of decision-making. There are many occasions when it spends a little more results in long-term value significantly increased. This error could reflect the nature of the short duration of your attitude towards money. It is easier to rationalize now saving  £ 10 a saving of  £ 20 at some indefinite time in the future. When you live like this, always looking for a bargain, missed out on the bigger picture. Start making decisions based on the value and the price and you have a combination of conquest for greater wealth.
Martin Bamford