Posted by Eric Twitty on May 31, 2009
Welcome back!
by Nikola Grubisa
You have probably read or heard about various myths (these are the truths that are valid only for certain cases, but not in general) surrounding wealth and wealthy people, all of which hinder your quest for financial independence. Here are the most common and most destructive:
Myth No. 1: How much you earn depends on how hard you work
If this were true, then the physical, blue-collar workers, who have been working hard for years, would have been the wealthiest people on earth. Of course, this isn’t true. They form most of the workforce and the vast majority of the middle-class.
If you witnessed your parents coming home tired from a long day’s work in your youth, you probably learned that money wasn’t a sufficient reward for all that effort. People who work “just” for the money often have debts because they comfort themselves with whatever they can buy, beautiful things they lack when working.
Myth No. 2: Being paid for something you enjoy isn’t work and you shouldn’t ask for money for doing something that is enjoyable.
Check this with millionaires. They all have so much money that they don’t need to work anymore. Nevertheless, they work for other reasons, challenge, satisfaction, fullness of life, activity, fun … and all are connected to a love for their work. If there was no joy in doing a certain task, they would do something else that would make them much happier and that enables them to realize their dreams.
In fact, if you don’t enjoy your work, you will never become wealthy doing it! However, just because you enjoy your work doesn’t mean you shouldn’t get paid for it - in fact, that is the ultimate goal, to get paid for what you already enjoy so it never feels like you are at work!
Myth No. 3: You need to be in the right line of business to amass wealth
Do you think so? This must mean that all the people who are involved in the same business are millionaires. Of course, this isn’t true. In each business there are winners and losers; winners abound, even in businesses that consist of distasteful (to most) or “impossible” work like sweeping the streets, collecting the trash, working in a factory, pumping gas, selling newspapers, etc. On the other hand, there are just as many “losers” in businesses like selling real estate, management or being a stockbroker.
Myth No. 4: You need the right education to make a fortune
Are the most educated people really the wealthiest? Not at all! In this case, university professors would be the wealthiest people on earth. Ask them about their salaries, if you get the opportunity. The truth is vastly different - the wealthiest people are those who can convert their knowledge (or education) into money, in the best possible way. They can be highly educated people (like inventors, scientists, etc.) or almost ignorant.
Being formally uneducated does not equate to poor performance on the job or the inability to form a strong enough vision to carry a person to success - they can easily be experts without having a formal education.
Myth No. 5: It used to be easier
Statistics show an increase in the number of millionaires in the world every year. Talking about the “good old times” only offers comfort and a convenient excuse. If you look around, you’ll see there are people who behaved the same way in the “good old times” as they do now, yet their success has been recent. With technology and progress come new ideas, desires and needs and there are more business opportunities appearing daily to serve them.
Myth No. 6: I’m too old (young)
If you research the life stories of some of the most successful people, you’ll see that this isn’t true at all. Some became wealthy early in their lives (perhaps from the stock market), while others found their fortune in their old age. Ray Kroc, was more than fifty years old when he bought and made the first McDonald’s.
Myth No. 7: I don’t have enough money to start. You have to spend money to make money.
This is no different from any other excuse or “myth.” Like the others, it’s obvious this one isn’t true either. Many have made their fortunes starting from scratch, living in an apartment or working out of their garage and yet, they developed business empires that are worth billions of dollars today. The other elements of success are far more important than having seed money to start a business.
But yes, often money helps and it certainly doesn’t hurt. Like everything else discussed in other myths: it probably helps, but it is not always necessary.
Myth No. 8: I’ll begin when I know everything
Do you believe that you will know everything someday? Or even that you’ll know enough to ever be “really prepared now?” The more you learn, the more you see what you still need to learn. Success and obtaining wealth is a dynamic process. Even if you “could” come out of the gate knowing everything there is to know, some of those elements will change immediately and many will change rapidly. If you don’t decide now, nothing will happen. Live and learn.
Some millionaires have even allowed themselves to go bankrupt and then (even faster) recreated their wealth, sometimes even greater than before. Money itself isn’t the obstacle that is keeping you from being wealthy. If you’re really good in your business, don’t worry, because someone that will offer you money (a bank or business partner) will appear who will appreciate your talent knowing you are a very good investment opportunity. But you can’t sit around waiting for this - make it happen.
Exercise “taking action” as much as you can. Make your workplace better or more efficient. After all, even if someone else signs your paycheck, you really work for you. Even if you are an employee in a large corporation - it isn’t your corporation - but it is the only corporation through which you can prove what you are capable of right now.
All of us have what it takes to become a millionaire! Born winners, yet few of us know how to take advantage of and cultivate the possibilities hidden inside our own mind!
No one can ever grant you greater potential than your heart already holds…you need only discover its contents to find the one true path to your success in life. Born with the seeds to our success, the greatest decisions must always come from the inside! You will discover a new, deep well of fortune – yourself!
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Nikola Grubisa is a European Marketing and HRM Consultant and the co-author of a European bestseller “The Millionaire Mindset: How to Tap Real Wealth from Within”. If you are wondering how top marketers are marketing in Europe and at the same time want to discover the path to true wealth, please subscribe to his new free eZine “The Millionaire Weekly Memo”. Click here: http://www.TheMillionaireMind.net?a2-aa
Posted by Eric Twitty on October 30, 2008
Want to make sure that you struggle financially for the rest of your life? Be sure to do these things:
1) Buy the nicest, most expensive car you can find
Go out there and get that car you always wanted but never really could afford. It’s fine as long as it makes everyone jealous right? Just think about how many people will want to be like you.
2) Buy the nicest house you can find
You can’t have a nice car without the nice house. Go find a big, expensive home that will impress your friends and make them even more jealous of you. They will really want to be like you now.
3) Use credit cards to buy what you can’t buy with cash
Who cares if you don’t make enough money to buy the things you want. That’s what credit cards are for. Charge up those cards. You can buy something for $500 and only spend $10 per month.
4) Don’t save your money, you can’t take it with you when you die
Why save money? If you don’t spend it someone else will right? Buy whatever you want. Have you been wanting the latest designer jeans? No problem. Buying jeans is way more fun than investing.
5) Don’t let your neighbors out-do you
You can’t still be driving a 2008 Mercedes when your neighbor just got a 2009 model. Go out there and not only get a 2009, but a more expensive model too. Never let your neighbors have nicer things than you.
6) Don’t waste time buying groceries and cooking when you can go out to eat every night
You don’t have time to go to the grocery store and cook. If you are eating at home, who is going to see you in your 2009 Mercedes? They don’t even have a valet at the grocery store. You should go to expensive restaurants to eat because that’s where the rich people go. You drive a Mercedes. You are rich too, aren’t you?
7) Make sure you have all the latest technological gadgets
You can’t live without the latest IPhone. You have to have the 60 inch plasma t.v. in your living room. Do you have the little 10 inch plasma t.v.’s in every bathroom? What about the newest Blue-Ray DVD player? And last but not least, you must have one of those automatic vacuum cleaners that vacuum your floor for you.
Is this you?
Are you doing these things? If you are then you are well on your way to going broke and staying there until you change your habits.
Posted by Eric Twitty on October 9, 2008
You always hear from people selling trading systems and programs on TV and on the internet that you should take charge of your financial future, don’t let someone else manage your money, you can do just as good a job as they can. This is what they tell you.
Let’s think about that for a minute. You probably have a job. You are probably very good at what you do. Unless you happen to have the same job as me, I probably couldn’t do your job without extensive training. People don’t tell you not to hire an accountant to do your taxes and that you can do it on your own. They usually recommend that you hire an accountant. Why? Preparing your taxes requires specific knowledge that you generally wouldn’t have unless you are an accountant. Doctors, lawyers, pro athletes etc. all go through years of extensive schooling and/or training to become proficient at what they do. The same applies in trading. It takes knowledge and practice. It is a highly specialized profession.
Think about what you do for a living. Can just anyone do what you do? Sure there are other people out there that can but can everyone? I don’t think so. You probably spent considerable time and money learning the skills necessary to do your job. Why is it that you hear that trading for yourself is a good idea?
Anybody that has ever traded can tell you that it is one of the most challenging things they have ever attempted. It takes time, dedication, and specific knowledge of the markets to just break even. Even if you can devote yourself to the markets full time there is no guarantee of success. Trading futures is a zero sum game (excluding commissions and fees). One trader loses money, another trader makes money. It is said that 85-90% of all traders lose money. So that means that 10-15% of traders are taking money from everyone else.
When you trade, you are trading against full-time professionals, who have the knowledge and risk management skills necessary to trade successfully in the markets. Would you put your money on the line against a professional in anything else? Would you put money on the line that you could beat Oscar de la Hoya in the boxing ring, or that you could beat Tiger Woods in a round of golf? Probably not. So why is it people insist on competing with professionals every day in the financial markets?
Don’t get me wrong, you can trade successfully in the markets. Anyone who is willing to put in the time and effort necessary can learn to trade profitably. But, you must be willing to invest years and thousands of dollars into learning how to trade successfully, so possibly one day you can sit in front of a computer screen all day and trade your own account profitably. Otherwise, I suggest letting someone who has already shown to be profitable over time trade your money for you. Trust me it will be less stressful, and give you the time to do what you want to do with your life.
Trading isn’t as easy as some TV commercial or internet ad would have you believe. They are just trying to sell a product. People that buy these products learn very quickly though that it takes much more than what is given in the product to be successful.
Trading success is very dependant on a person’s ability to control his or her own emotions. That is something that can’t be easily taught in a course. They can give you suggestions, but it takes experience to truly become a master of your emotions.
People that trade for themselves often throw money at trading ideas that don’t work out. They have a gambling mentality. Sure, gambling can be fun, but it’s usually not profitable. There are few gamblers that consistently take money from the casinos.
The same is true in trading. Professional traders separate themselves from the general public by taking a methodical, disciplined approach, and using sound money management principles to profit over time. The good news is that these traders are willing to trade for you for a portion of the profits.
I understand why people trade even when they don’t do it successfully. It’s fun and challenging. The dream of financial freedom is a big motivating factor. I’m not saying everyone would be better off letting a professional trade for them. If you enjoy trading, go for it. I do encourage you if you are considering trading for yourself to give serious thought to it before you attempt it. The odds are definitely against you unless you are adequately capitalized and disciplined in your trading approach. There is money to be made in the financial markets and investing is a key to becoming financially independent. But, in my opinion, most people are better suited to leave it to professionals, who have proven they can consistently manage risk and be profitable over a period of time, through a documented track record.
Why try to be in the 10-15% of winning traders when you can let someone who already is a winning trader trade for you? There are plenty of talented money managers out there that want to trade your money. Trading is their business. Their performance is documented. While past performance is not indicative of future results, it does give you some insight into the ability and trading style of the money manager.
There are plenty of managed products out there to choose from. Whether is mutual funds, hedge funds, managed futures, or index funds, there is something out there for you.
