Most people set their goals high. We all want to become wealthy, build skills, archive personal freedom, and enjoy success at love. The first step for most of those goals is to start making money. Financial independence is quickly followed by plans to save and build that into greater success. But how? We often fall back on old advice, but it's incredible how often "common sense" ideas can lead you astray when it comes to making money.
Here are the top 8 common misconceptions that can hold you back from your real financial potential.
It takes money to make money.
It does not actually take money to make money. It takes supply and demand. If you have what someone wants, and they want it bad enough to pay, that's where money comes from. A carpenter can make money out of scrap wood (potentially free) and time. A tour guide or a street performer can make money with their voices alone. It takes ambition, opportunism, and energy to make money.
Buying is always better than renting.
Believe it or not, buying is not always better than renting. Take buying a house: With mortgage, property taxes, maintenance, and possibly HOA fees, it could cost more monthly to own the house than rent it. If you need the latest car every year for professional appearances, it costs less to lease than to buy and sell yearly. Know when to buy and when to rent.
Money will help me find love, or help love find me.
It actually becomes harder to find love once you become wealthy, because you must sort partners who are looking for an easy life vs those who value you alone. Take it from the many who became wealthy as adults: try to find love before achieving wealth, become wealthy together.
Millionaires drive sports cars and live in mansions.
Some millionaires drive sports cars and live in mansions. They often lose those cars and mansions as well. The thousands of modest millionaire CEOs and contractors live in the same suburban or apartment and drive the same sedans as everyone else. In fact, savvy professionals in the upper salary ranges save money by living modestly and put those savings into investments or college trust funds instead.
Wealthy people have enormous bank accounts.
It's a good idea to have big savings and considerable investment-funds by the time you have a few hundred thousand dollars to your name. But not all wealthy people have big bank accounts. In fact, many people live on flowing debt, constantly taking out big loans and paying them off. This creates a powerful credit score, but not always a lot in savings. It's also smarter, after a certain point, to put your savings into investments instead of piling in accounts.
Money will win me friends and allies.
Like love, it's more difficult to find good friends after you become wealthy. What will get you friends and allies, however, is professional performance. Projects, shared ambitions, and strong colleague relationships are a great way to build friendships. Or find friends through hobbies and outside-work activities instead, with those who share your interests.
You need a normal life and routine to become wealthy.
Some people have been led to believe that you need a 'normal' life and routine to make money. Stability does help you to stay organized and go to work every day. But many of the richest people are night-owls, have non-traditional families, or crazy artistic workflows. Many make their money working the night shift, for example. Don't exclude yourself from success if your natural lifestyle is not 9-5 or polo-shirts-and-family-dinners.
More money means more fun.
Lastly, don't assume money will get you more free time and fun. It takes work to make and maintain money, so rising a level in wealth often requires more effort, not less. The goal is to get better, personally, at enjoying the free time you have and to make time by becoming more efficient. It's hard work to have good fun, and always has been.
If you want to achieve your goals, it helps to see the playing field clearly. Get rid of these old misconceptions and approach your money-making strategy with fresh eyes and genuine ambition.
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Our team of highly skilled professionals will evaluate your current situation to see if you may qualify for one of our debt relief programs. You don’t have to struggle with high-interest credit card debt any longer.