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Misconceptions of Wealth

Why do some people achieve financial freedom and have great lives while others struggle? Today we are going to address the 3 biggest misconceptions or myths about wealth. This was trimmed up and inspired by Mr. Roger James Hamilton,  Founder of Entrepreneurs Institute. I’ve bought his book and his thoughts really aligned to a lot of things I learned from my experience particularly these Misconceptions.

1st Myth: Wealth Comes from Passive Income

MYTH

You can get wealthy by going into debt to buy assets that will give you passive income so you no longer have to work for a living.

TRUTH

how-important-is-passive-income-to-your-wealth-building-strategyYou’ve just dug a hole, not a river! All income needs to be managed, which means you need to know how to manage a team and experts who can manage your portfolio of assets.

A critical part of creating or building your wealth is building assets that make up cash flow. With the aspiration that they can provide continues passive income, a lot of people stretched their resources to purchase a property or any other assets and eventually encountered a loss. Then they would just discover that the value of these assets fall which causes a negative cash flow as well as the messing up of their credit ratings.

But these things didn’t happen to the wealthiest people, do you know why? It is because these wealthy people understand that their assets (whether the business or properties) need to be handled appropriately, and there is practically nothing passive regarding it.

2nd Myth: Wealth Comes from Multiple Streams of Income

MYTH

The more income streams you can start, the wealthier you will become.

TRUTH

Starting many streams at the same time is like trying to push many balls up a hill at the same time: You may get started, but you end up losing your focus and your time. Success comes from growing teams, not streams: multiple teams of income.

When you’re just getting started, this myth just might be among the most dreadful ones. However, it’s risky at each point. In the event that everybody around you is uncertain what your major concentration and focus actually is, where you stand and what your spot on the field is – you will likely persistently run after that ball instead of letting it get kicked to you.

Money doesn’t make money, people generate the income. This idea is what people recognize as they step up the wealth ladder. Prior to investing in the assets you shall take on, you must put the money into the most appropriate people, otherwise you end up being the only one performing all the necessary juggling and it is just a matter of time before you start dropping the ball.

Myth #3: Wealth Comes from your Exit Strategy

MYTH

Wealth comes when you sell out: Plan an exit strategy where you can work hard now and earn the money later.

TRUTH

changenextexitKeep working, because you love what you do. Don’t strive to bake a pie so you can sell it; own the bakery so you can bake as many pies as you want, sell some, and keep the rest.

Instead of an exit strategy which is leaving the game, change it with a success strategy or staying on top of the game. Remaining engaged in what they do is what makes the wealthiest people on earth who they are, because it doesn’t feel like working hard when you do what you love. Any kind of exit strategies are useless when moving up on the wealth ladder.

Many of us are connected to one another through the market. The FACTS above are actually a better way in which building assets is changed by creating flow. In this flow everything is interconnected, so when you become a part of its enhancing, nurturing and expanding, it surrounds you. It makes aiming to work out different ways of making money and staying in the game that much more essential.

Your greatest asset will be your time and effort. What matters most is to invest it properly. Maintain a success strategy in something which you are certain you love doing, wihout expecting any payment in return.

You are welcome to follow us on Facebook here, and subscribe here to get the massive free educational series focused on raising your emotional intelligence, social intelligence and self mastery.

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How to Start Investing with $0

 

$0 Investment

7 x 24 = 168 hrs in a week

7 x 8 = 56 hrs for sleep

1. How does your normal week go?

On the above maths, after sleep you have 112 hrs left and work typically is 40-60hours a week.

To start investing, analyze your time. Where did those hours go?

2. Minimize time wasting. Minimize expenses.

Often people unnecessarily spend money. Make the decision to save that money, and spend that time more efficiently.

Three Simple examples:

1. Taking your partner, date, or friend to the movies versus bringing a date to a picnic with a few friends.

2. Watching a series of new entertaining TV show versus watching an educational program about the basics of money, watching Tony Robbins, or reading a book!

3. Hours on Facebook/Youtube looking at funny things versus reading blogs like mine about success, health, and spirituality.

3. Make a solid decision to move forward and make better use of your time every single day.

This progression of reducing expenses (money, time and energy expenses) and maximization of these precious resources is the start of you investment journey.

4. Moving forward with caution or velocity?

If you’re  investing energy and time in a better body, you may want to study better health principles before trying a diet.

If you’re investing for your Money read more about money or come play Cashflow 101 before starting to trade currency.

Using your resources productively is the big start!

You can make the big start easier by little steps.

Whats the first little baby steps you could do this week that improve your resource management?

Whats the baby step you can do TODAY?

From the material I share, there is enough to start! There is no need to dive into Stocks, options, CFD’s, and the like.

How did I start?

Time is MoneyMy first investments was a bucket, sponge and a bottle of detergent. I started washing cars around the neighborhood for less than $5 each.

Later, I read a pile of books about investing. The start of my “Investing Career” or “Pivotal Moment” was around my 19th birthday when I realized that I had worked at least casually to part time since I was 14 but hadn’t actually saved anything. My net worth zip. Have you ever felt like that. Like, darn I’ve been working so hard but have nothing to show for it!

I decided to put my foot down. I minimized my expenses, and spent all of the spare time and money educating myself. Once I saved $500AUD I started my first trade on the Australian Share Market. Although I paid $60 in entry and exit fees I did it because it was the first steps! Once the money was in, I kept going cause I could see the value of that investment growing everyday just from reading the newspaper. (Back in the old days).

If you don’t have the time to start learning about Share Trading, there are easier options. There are always options. Just have to start.

 

 

A lot of people ask me about Financial Investing, to start you really have to review steps 1 – 4 regularly.

Start investing now!