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
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.
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
The more income streams you can start, the wealthier you will become.
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
Wealth comes when you sell out: Plan an exit strategy where you can work hard now and earn the money later.
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.
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