5 Destructive Money Myths Holding You Back

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Wealth, when you break it down, comes down to some fundamental elements. It is pretty simple. It’s definitely not always easy, but the wealthy will tell you that, at the hear of it, it is simple.

The problem, however, is that we make it harder than it is. We’re taught the wrong things and develop the wrong beliefs, but today, 5 experts are going to help squash a few of those.

5 Destructive Money Myths Holding You Back

Misconception #1: The wealthy accumulate money

“The biggest shift for me was understanding that average people accumulate money while the wealthy accelerate money. Wealthy people don’t save their way to wealth. That is a long, slow, and virtually impossible strategy.

The best way to create wealth is to focus on increasing cash flow and using both money and skills to increase wealth more quickly. This is why business owners and real estate investors beat out people saving in 401k’s. They focus on investing in things they can control and make a much higher return than lackluster mutual funds.” – Chris Miles, Founder & Cash Flow Expert of MoneyRipples

 

Misconception #2: Money is an end unto itself

“Money is only a means to something else. In my practice the first question in a series of questions I ask prospects is, What is your true purpose for money? i.e. what is more important than money itself? And I ask them to define it in one word.

For me, the true purpose of money is Freedom. It gives me the freedom to take off a week, not work today, fly to LA for the weekend, visit my 84 year old aunt in Florida, etc.

People who achieve wealth are hard workers who don’t work for the money; they work to build something.

With respect to what students learn in school is that to become wealthy they need to work hard. That is true but to become wealthy, you need to have money working for you. You can’t do that if you spend everything you earn by buying the newest iPhone, downloading every new song, spending $4 for a cup of coffee, the latest fashion in shoes, jeans and jewelry. With money, you spend some, you save some and you give some.” – Bill Mullen, Managing Member, Mullennium Finance LLC

 

Misconception #3: Investment success comes from finding the right person who finds us the right investment at the right time

“The financial services industry and media perpetuate this notion that investment success is about security selection and market timing. The reality, which has been absolutely proven through scientific research, is that investment success results from:

1. Broad diversification among numerous asset classes
2. Broad diversification within each asset class
3. Using a passive (index) strategy to keep investment management expenses low, and…
4. Behavior management – not shooting yourself in the foot by investing emotionally and giving up return that otherwise would have been available to you.” – Colin Drake, Founder, Drake Wealth Management

Misconception #4: The average person will never be rich

“This self-limiting belief keeps them stuck in what I call “The Scarcity Loop.” Fear of not having enough money causes anxiety so they make poor choices (like, they don’t put away into their 401K b/c they don’t believe they can afford to) and the choice to not save leads to a lack of wealth.

By shifting their mindset to one of abundance, they can begin to make better choices and take actions that are aligned with a belief that “they have enough.”

When you feel thankful for what you have, you have peace of mind and can make better choices that lead to better outcomes. This is the Abundance Loop (the title of her book that will be released next spring). I am passionate about helping people shift their beliefs from “not enough” to one of abundance.” – Juliana Park, Author & Conscious Wealth Expert

“The reality is that everyday, all around the globe, trillions of dollars exchange hands. There is a constant and massive supply of money flowing all over the world. And where does that money go? It goes to wherever there is good value. Thus, if you are able to deliver a genuine value in a way that is scalable, you have the potential to earn an unlimited amount of wealth.” – Colin Drake, Founder, Drake Wealth Management

Misconception #5: Luck is the gateway to riches

“I feel in the middle class that luck is taught a lot more than it should be in achieving success. Ask any self made person if luck got them to where they are today and they’ll probably shake their head and remember the hundred hour work weeks…

By working really hard, luck seems to happen… or should we call it what it is, opportunities develop because of the hard work and long hours.” – Marc Anderson, CEO, TalktoCanada.com

Action Items:

• “Focus on increasing cash flow and using both money and skills to increase wealth more quickly.” – Chris Miles
• What is your true purpose for money? Define what money is to you in one word.
• Shift your mind to one of abundance and watch your world change. We have several videos and resources to help you do this in the book guide. Sign up for free HERE.
• Deliver a good, genuine value that is scalable.
• Work harder (and smarter) than everyone else around you and you’ll see the many opportunities that are right in front of you.

The Experts:

• Chris Miles, Founder & Cash Flow Expert of Money Ripples
• Bill Mullen, Managing Member, Mullennium Finance LLC
• Colin Drake, Founder, Drake Wealth Management
• Juliana Park, Conscious Wealth Expert and Author
• Marc Anderson, CEO, TalktoCanada.com