The 8 Myths About Creating Wealth

Posted by Eric Twitty on May 31, 2009

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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

10 Investing Basics From Warren Buffett

Posted by Eric Twitty on January 15, 2009

I found a great article on MSN Money about investing.  As you may know, Warren Buffett is widely regarded as the world’s most successful investor.  This article outlines the basics that Buffett follows in choosing which stocks to buy and managing his investment portfolio.

Anyone that actively invests their own money should keep these basics in mind.  Here is a link to the article:

10 Investing Basics From Warren Buffett

I hope you find this article useful.

Savings Plan: Do You Have One?

Posted by Eric Twitty on October 28, 2008

It is a well published fact that most Americans have very little or no savings. This, in my opinion, is a direct result of most people wanting to live well above their means. The problem is, over the long term this type of thinking leads to a reduction in your quality of life.

High credit card debt and living in a bigger house than you need is a sure way to continue living paycheck to paycheck. This leaves little money left over to build financial indepedence.

Stop Spending and Get Out of Debt

If you have to charge anything on your credit card, and you are not able to pay off the entire balance at the end of the month, then you are spending too much money. Stop using those credit cards and start paying down your debt.

The first thing you have to do is cut down on spending. Sit down and write out all of your bills and necessary living expenses. Whatever is left over you should use to pay off your credit card debt.

Start Saving and Investing

Once you are out of debt, then you can begin putting money in the various investment vehicles that have proven to appreciate in value over the long term.

Where should you invest your money? There are many choices out there. The best thing to do is talk to a licensed financial adviser if you are not educated on the various types of investments.

I think it is an absolute necessity to contribute the maximum amount to an IRA each year. An IRA is a tax-deferred investment which is an enormous advantage for long term capital growth. I think it is also important to have at least three month’s living expenses saved in a high yield savings account. Once you have enough in your savings account, and you have contributed the maximum amount to your IRA, you can then begin to put money in various investment vehicles that suit your return expectations and risk tolerance.

Develop a Disciplined Savings Approach

Think of your savings plan as a bill that you have to pay. If you have $500 left over to save, then make it a point to write a check for that amount at the end of the month to one of your investment accounts. Don’t miss a month.

Once you do this for awhile it gets kind of fun to watch your savings grow. You begin to feel better about your financial situation. Every month that you write that check, you take a positive step towards becoming financially independent.

Don’t Spend It

You must resist the urge to spend the money once you have a decent amount saved. Don’t spend your money on things you don’t need. Put that money to work for you so one day you can afford whatever you want!

IRA Guide: Investing in Your Future

Posted by Eric Twitty on October 23, 2008

If you have ever wanted to start investing some of your hard earned money, the time is now. Stocks have taken a plunge and there is a lot of value in the market right now.

If you are new to the investing world the first thing you should do is open an IRA or Individual Retirement Account. The money earned is tax deferred meaning you don’t pay taxes on capital gains or dividends until the money is withdrawn. There are restrictions on how much you can invest annually but you should do whatever you can to maximize your contributions.

Don’t rely on social security to get you through retirement. Put up as much money as you can to ensure that when you retire you can enjoy your life and do the things you want.

There is a great article over at The Motley Fool that will tell you everything you need to know about IRAs. Here it is:

Fool.com: All About IRAs

Read this article then get out there and get started. Don’t let this opportunity that the stock market is giving you pass you by. Pick up some of these stocks and mutual funds while they are still cheap. Don’t be afraid. If now is a good enough time to buy for Warren Buffet, the richest man in the world, then now is a good time to buy for you.