10 Reasons You'll Never Be Rich

By Cameron Huddleston | Kiplinger – Wed, Nov 27, 2013 12:31 PM EST

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You don't have to inherit money, win the lottery, or even be the next Bill Gates or Warren Buffett to become financially secure. With a little bit of knowledge and a lot of hard work and discipline, almost anyone can accumulate sufficient wealth -- and perhaps even great wealth -- to enjoy the creature comforts of life.

But how do you get ahead if you're living paycheck to paycheck? The fact is, no matter how much you earn you could be creating your own barriers to financial success without even knowing it. Here are ten things you might be doing that are preventing you from achieving prosperity. Change your ways and you could find yourself well on the way down the road to riches.
You Spend Too Much
Plenty of Americans live beyond their means but don't even realize it. A 2012 Country Financial survey found that more than one-half of respondents (52%) said their monthly spending exceeded their income at least a few months a year. Yet only 9% of respondents said their lifestyle was more than they could afford. Of the 52% who routinely overspend, 36% finance the shortfall by dipping into savings; 22% use credit cards.
Blowing your entire paycheck (and then some) each month isn't an ingredient in the recipe for financial success. Neither is draining your savings or running up card balances. To rein in spending, start by tracking where the money goes every month. Try to zero in on nonessential areas where you can cut back. Then create a realistic budget that ensures you have enough to pay the bills as well as enough for contributions to such things as a retirement account and a rainy-day fund. Our household budget worksheet or an online budgeting site can help.
See Also: 9 Ways to Get Rich Quicker
You Save Too Little
If you're like most folks, your savings habits could use some improvement. The personal savings rate in the U.S. is just 4.9% of disposable income, down from a high of 14.6% in 1975. Only about one-half of Americans (54%) say they have a savings plan in place to meet specific goals, according to a 2013 survey commissioned by America Saves, a group that advocates for better saving habits.
Saving needs to be a priority in order to build wealth. Begin with an emergency fund that can be tapped in the event of an illness, job loss or other unexpected calamity. A 2012 survey by the Financial Industry Regulatory Authority found that 56% of individuals say they have not set aside even three months' worth of income to handle financial emergencies. Once your emergency fund is well under way, you can divert small amounts toward other goals, such as buying a home or paying for college. These six strategies can help you save more, no matter your income.
More: 10 Best Ways to Earn More Interest on Your Savings
You Carry Too Much Debt

Americans have $846.9 billion in credit card debt alone. That's $7,050 per household, according to NerdWallet.com, a Web site that analyzes financial products and data. If you're only making minimum monthly payments on $7,050, it'll take 28 years and cost you $10,663 in interest before you're debt-free, assuming a 15% interest rate. And that only holds true if you don't make any additional charges.

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