Money Myth 11,12 & 13
Reading time: 2 – 4 minutes
“You need a break to become wealthy”
Wealth is not an accident, it’s a function of your actions in your financial world- and your actions are directly shaped by your thoughts, feelings, and beliefs around money, value, and business. We’ve all heard stories about how lottery winners manage to lose all of their winnings, and how multimillionaires who lose everything tend to rebuild their wealth within years? Wealth is not an accident, nor is it a function of luck- it is a function of your actions in life, and your motives. We use ‘you need a break’ as a way to avoid being responsible for how our lives turned out.
“The economy is too bad to get rich now”
There’s more than one way to build wealth, and the key is to understand that there’s always an investment that’s good right now. When stocks go down, bonds go up. When interest rates fall, stocks go up and homes get cheap.
If the economy is ‘bad’, that means it’s time to sell your bonds at a profit and buy stocks at a discount. …or refinance your mortgage to pay lower interest rates. Profit is made on the purchase and income of a property, as well as the sale price. If the market is down, buy low. If the market is up, sell high. If you’re not sure where the market is right now, position yourself such that you make money no matter what.
The simplest way to make money no matter what is to have control over the process of buying low, adding value, and selling at a profit. If you buy cheap parts and sell a product worth more than the cost of the parts, you’ve got yourself a system of creating wealth that will work in any economy.
“It’s better to give than to receive”
Whoever tells you this probably either wants you to give them something, or to feel bad about receiving something.
I don’t mean to sound cynical here- giving is a good thing, something I enjoy quite a bit- but there’s nothing wrong with receiving either. To say that one is better than the other is simply creating an imbalanced perspective. Neither is better than the other, if you think about it- neither *can* be better than the other- for every gift, there must be a recipient. Being a bad receiver doesn’t make you a good person, or for that matter, a good giver- it just makes you uncomfortable about receiving.
If you’re uncomfortable about receiving things, you’ll find ways not to- whether it’s gifts, income, anything. You may avoid profitable situations that deliver value to others, simply in order to avoid receiving. An important skill to have, if you want to become wealthy, is in being able to receive as gracefully as you give.
Popularity: 2% [?]
Twitter
Youtube
RSS
Email
Facebook
I fell for that myth its better to give then receive that is what lead me to a very broke lifestyle. That also lead me on a guilt trip that had me wanting to please “friends” while I let them hustle me while I was struggling with rent.
That’s because of the grip of religion in our money making lives. We got so many cats who don’t understand the context of what they’re reading that we end up believing in the chupacabra. We go against our own best interest.
I had to learn that myself and deal with people calling me selfish but if I don’t make it no one will!
I never agreed with myths about making money. people used to tell me its better to give than receive. I would tell them why dont you give me anything and want me to give to you.
It was like a contradiction to me.
I just found out what “Skin in the game means”
Like I said it’s all part of religion that these sayings somehow make it over to money. It’s a good rule of thumb for life in general but when it comes to money it’s different.
LOL… when I was reading I had to define a lot of the words I absorbed. I had the book open and dictionary.com.
Now IS a great time to make $. The Players know how to cash in during ANY environment.
For example, look at the big katz on wall street…
They dumped their toxic mortgages on taxpayers @ 100 cents on the dollar + got to borrow billions from TARP @ 0% interest. This week I just read THESE SAME BANKS are buying back those homes 25 thousand of them at a time. Hell, even warren buffet said he wishes he could buy up a BILLION homes today.
Now, for the kat on the street, the economic downturn was an opportunity for the “bean counter” to come out of Ne to see where I could cut cost and make My operations leaner and efficient. So that when things improve and the “sales & marketing” growth kat cones out that bottom line should be swoll like the mumps
….its a great time to be an opportunist.
I mean hell, even employees are selling at a discount now. Folks just want a steady paycheck. 401k, health insurance be dammed!
Exactly! I think you have to be able to adjust to the times. When things are good you can sell anything when things are bad you need to make sure you are at or near the mouth or the anus as that’s the only thing people still have to buy.
Employees are at a discount for a while longer as the game is changing and the risk takers are coming out of the woodworks. Just like Buffet said he and the banks see opportunities and when you buy something someone has to process it and that’s a job. The days of being lean are around for maybe one more year then the game is over.
LOL aint that somethin’ Ase???