The most common misconception about wealth is that it is determined by how much money you make. However, there is more to it; it especially is about how much money you keep. And even though making money is hard enough, holding onto it is harder. This process is not helped by society or culture.
So, any individual intent on creating wealth must be mindful of some of the ideas and conversations going on around them. One needs to be able to sift for biases, projections, pressures or falsehoods, and then discard these ideas before they are dissuaded from attaining their financial goals.
1. You should not just be wealthy, but must be seen to be wealthy. The need to get constant applause for every decision you make is detrimental to your financial growth. It causes you to spend on things you do not actually need, and these quickly become liabilities. This is especially true for people that are newly successful, and are still always trying to prove a point.
So, any individual intent on creating wealth must be mindful of some of the ideas and conversations going on around them. One needs to be able to sift for biases, projections, pressures or falsehoods, and then discard these ideas before they are dissuaded from attaining their financial goals.
1. You should not just be wealthy, but must be seen to be wealthy. The need to get constant applause for every decision you make is detrimental to your financial growth. It causes you to spend on things you do not actually need, and these quickly become liabilities. This is especially true for people that are newly successful, and are still always trying to prove a point.
Unfortunately, spending in excess is still the way most people make the announcement of their accomplishments. However, some assets acquired turn out to be liabilities, for example, cars, recreation equipment, furniture and entertainment equipment, and vacation homes. On the other hand, income-generating assets include stocks, bonds, investment funds, income-generating real estate, real estate investment trusts, and businesses.
2. Do what you love. Well, many times the thing you get good at becomes what you love. And, as long as financial Independence is your priority, you will need to start, doing what needs to be done before you do what you want. Do not hold on to the idea of having your dream job as a do-or-die prospect. Instead, let time and financial priorities help guide your career decisions. I am certainly not telling you to ignore your passions, but merely that when those ideas cannot translate into reliable sources of income, at least not enough to give you the life you desire, you need to understand that life unfolds in seasons. A time will likely come when you will have the opportunity to do the things you love because you will have more financial success.
3. People do not change; this sentiment is usually reserved to explain people’s failed attempts at self-improvement. It is a cynical attitude that can cause you to fall into a victim mindset; believing that if you were bad with money before, you are doomed to be bad with money again. However, spending is a behaviour, not a personality trait. It can be changed, like all behaviour with the right motivation and discipline.
4. Money is evil. This is probably one of the more pronounced cliches about wealth; where people [particularly in certain religious groups] are condemned for pursuing it. This is fuelled by the idea that money is inherently bad and is the license to debauchery, corruption and a host of other vices. However, if one thinks of money as a means to an end and not the end in itself, it becomes a desirable thing for people to have and can be used as a force for good.
It goes without saying that a financial strategy can hardly thrive in the context of such ideas and beliefs. This makes it increasingly important to surround yourself with like-minded and goal-oriented people who can keep you focused enough not to get derailed by ill-informed cliches that would knock you off your track.
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The most common misconception about wealth is that it is determined by how much money you make. However, there is more to it; it especially is about how much money you keep. And even though making money is hard enough, holding onto it is harder. This process is not helped by society or culture. So, […]
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The most common misconception about wealth is that it is determined by how much money you make. However, there is more to it; it especially is about how much money you keep. And even though making money is hard enough, holding onto it is harder. This process is not helped by society or culture. So, […]
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