For 5 years I studied the daily activities of millionaire individuals. I have learned so much that I have spent most of the last 7 years sharing this information to help those with financial problems get out of the abyss of poverty.
One of the many things I learned is that wealthy men have a very different understanding of money than the rest of the world. I want to share with you some of the myths about money that I uncovered in my research.
5 silly myths that prevent you from having money.
Myth 1: Investing is betting on luck.
36% of the millionaires in my study built most of their fortune by investing their money in stocks. Before buying any stock, they would do a thorough financial analysis to find the strengths and weaknesses of the investment. The next step was to consult with a consultant to ensure the veracity of his results.
But the task does not end there. After buying the stock, they carefully monitored its behavior, if the numbers were in favor they invested more and if they were negative they sold the stock.
Also read: He built a million-dollar fortune in his room.
Sounds like advice from Warren Buffett, right? For these individuals, if you do not do prior research, you are not investing, you are betting on luck.
Also read: How to be lucky at work.
Myth 2: All debt is bad.
51% of the individuals in my study were entrepreneurs. They started their own businesses and ran them as if their lives depended on them. They took great risks that would have scared others to death. They were never afraid of debt, in fact many of them incurred huge debts in order to start, grow and expand their businesses. They used the debt to create an asset that would eventually generate profit for them and make them rich. Those are good debts.
Bad debt is the one you use to cover business losses. If there are losses, it is because you are doing something wrong and borrowing to finance the errors of bad administration is definitely bad debt.
Also read: know the difference between bad debt and good debt.
Myth 3: You need luck to be rich.
There is a difference between luck by chance and luck by chance. For those who hate the rich, chance luck is why the rich are rich. However, the real reason is that millionaires owe their wealth to chance luck. This kind of luck is the result of good daily habits. When you have good habits, you expand the opportunity to be lucky. Good habits are nothing more than frequent automated behaviors that help you get closer to achieving your goals by attracting luck by opportunity.
Myth 4: The pursuit of wealth is greed.
93% of the individuals in my study loved what they did long before they became millionaires. On average it took them 32 years to accumulate their fortune. 97% of them stated that greed was never a motivating factor, they worked because they loved what they did and becoming a millionaire was never a mission.
Myth 5: A penny saved is a penny earned.
One penny invested is 10 cents earned. The wealthy in my study invested their money in one of three places: In their own business, stocks, or property. If you really want to create wealth, saving is not enough, you must invest your money.
If you are really interested in creating your own business and want to find more information on this subject, buy our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
This article was originally published on richhabits.net. Its translation and publication in ModoEmprendedor has been authorized directly by the author and cannot be reproduced by any other means.
