15 Reasons You're Not a Millionaire

Becoming a millionaire can buy you a lot of financial freedom, but it will take some effort. Unfortunately, many people are making mistakes that prevent them from amassing a seven-figure net worth.

So what are some of the big obstacles to becoming a millionaire? Here are 15 things you're probably doing right now that could be preventing you from getting there.

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For most people, becoming a millionaire means watching their money. And the best way to keep tabs on what your dollars are doing is to make a budget.

A budget helps you to limit spending on things you don't need while making sure you've prioritized investing enough to amass $1 million. And the good news is, there are lots of ways to make one, including creating a detailed budget or a 50-30-20 budget if you don't want to feel as constrained.

Becoming a millionaire is a big goal, and achieving big things usually requires some planning. And the more detailed your plan, the more likely it is you'll achieve it.

If you're serious about saving seven figures, start by setting a time deadline for when you want to become a millionaire. Then, calculate how much to save each month, or even each week, to get there. That way, you can break your big goal down into achievable small ones and can easily see if you're on track.

ALSO READ: 4 Savings Goals You Should Set Today

Spending too much money on frivolous purchases is the surest way to end up falling short of building a $1 million net worth.

Most purchases tend to decline in value as soon as you make them and thus do nothing to help you build wealth. And the more of your money you use for unnecessary spending, the less there will be to help you hit your $1 million target.

It can be hard to imagine becoming a millionaire if you're far away from that goal -- and making the sacrifices necessary to achieve it may not seem worth it when there are more fun things to spend your money on.

But if you look ahead at the big picture, building the type of financial security that comes from becoming a millionaire is often the best way to ensure your money does the most to make you happy.

Cutting discretionary spending is one of the main things people focus on when trying to achieve millionaire status. And while slashing spending on your everyday indulgences can be helpful, it can be hard to sustain a lifestyle of deprivation for a long time.

There's also a bigger problem. In many cases, there's simply not enough "fun" spending to cut to become a millionaire if you've overcommitted yourself to monthly payments you can't really afford.

If you buy a house or car that's too expensive, you'll always be short of the cash you need to amass a million in wealth. But if you keep these fixed expenses to a reasonable percent of your budget, you're much more likely to hit your savings targets over the long haul.

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An emergency fund protects you from the kinds of financial disasters that can seriously interfere with your efforts to become a millionaire.

With an emergency fund of three to six months of living expenses, you shouldn't have to worry about going into debt -- or worse, facing foreclosure or repossession -- if something goes wrong. You can rely on your savings to make sure you stay on course in accomplishing your financial goals.

High-interest consumer debt is an albatross that most millionaires avoid, and it can prevent you from ever hitting millionaire status if you don't steer clear.

Whenever you borrow for something, you commit some of your future money to interest and make your purchase costlier. All that cash can't be used to achieve your important financial goals.

ALSO READ: How to Go From Broke to $1 Million in Only 20 Years

If you're married or in a committed relationship, your partner's spending habits affect yours. If you want to become a millionaire but your spouse is spending irresponsibly, your goals are sure to be derailed.

Not only will it be harder for you to accomplish goals together if you aren't on the same page, but your spouse's influence could prompt you to engage in irresponsible spending yourself. That's why it's so important to have regular money conversations and agree on what goals you both want to work toward.

In many cases, people prevent themselves from amassing $1 million in wealth because they spend too much. But in other situations, a lack of income is the problem. After all, if your income is really too low to afford the basics, no amount of budget cutting is going to help you become a millionaire.

There are many systemic reasons why some people can't make enough money to save. But sadly the system isn't going to meaningfully change anytime soon. If you want to amass $1 million and you have the ability to do so, you're going to have to find a way to make sure you can earn enough to do it.

That may mean going back to school to improve your earning power, or asking about management training programs at work or taking other steps within your power to try to make yourself more employable at a higher pay rate. By investing in boosting your skills, you can put yourself in a position to hit your $1 million target.

Since earning a good income is so important to amassing a million-dollar nest egg, you need to make sure you're doing all you can to boost your wages.

This means negotiating for a higher salary when you start a new job, as well as making sure you always negotiate to get the highest possible raise. It can be hard to advocate for yourself and ask for more money, but if you don't do so, this could be one big reason why you don't end up a millionaire.

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If you want to amass your $1 million to support you in retirement, you should be taking advantage of the free money that's available to help you do that.

If your company offers a 401(k) match, that means investing enough to achieve the maximum in matching funds your employer provides.

And regardless of whether you get a match or not, you should be investing in tax-advantaged accounts such as a 401(k) or IRA. If you do, the government essentially subsidizes your savings since each contribution to your investment account doesn't reduce your take-home pay as much.

ALSO READ: Up to $9,620 in Free Retirement Money Could Be Yours for the Taking, If You Act

If you want to make sure you become a millionaire, you need to pay yourself so you don't end up spending money you need to build wealth. Since it can be hard to always make the responsible choice, the best thing you can do is to take the choice out of your hands by setting up automatic contributions to investment accounts.

If your money disappears into an investment account before you ever get a chance to spend it, it will go to work building wealth for you and you won't have the chance to waste the cash on something else.

Most people aren't going to put $1 million worth of money in the bank in order to become a millionaire. Instead, they're going to invest some money and use the magic of compound interest to help it grow into $1 million.

Compound interest allows your wealth to grow exponentially once you start saving. If you earn $10 in interest on your investments, that $10 will be invested and can start earning interest of its own. You'll earn more interest next time on that extra $10, which can in turn be reinvested to go to work earning even more for you.

You'll miss out on the power of compounding if you don't invest your money, so if you're just leaving your cash in the bank that's definitely one big reason why you aren't a millionaire yet.

In order for compounding to help you reach $1 million in net worth, you need to earn reasonable returns on your investments. That means you don't want to avoid all risk, as higher-risk investments tend to give you the chance to earn better potential rewards.

Of course, you don't want to take an unreasonable level of risk, either -- don't go to Vegas and bet your savings on the roulette table regardless of the possible return you could get if your bet comes in. Instead, determine an appropriate percentage of your investment dollars to put into the stock market given your age and investing goals.

For most people, building enough wealth to become a millionaire takes time. After all, even if you're working on boosting your income and you're investing money, you aren't going to have $1 million right away.

The key is to be smart about your money, put it to work for you, and be patient as you wait for it to grow into the big pot of cash that you need to become a millionaire.

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As you can see, most of the behaviors preventing you from becoming a millionaire are things you can change.

If you commit to living on a budget, not spending more than you earn, and making smart investment choices, becoming a millionaire should be within reach. It's up to you if hitting that million-dollar target is a goal you want to sacrifice for -- and if you decide it is, your efforts will be well worth it in the end.

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