Advice That Is Keeping You Poor

Keeping you poor

Is Bad Advice Keeping Me Poor?

Advice is guidance or recommendations concerning what future actions you should take.  Typically these tips are given by someone regarded as knowledgeable or authoritative. For instance, we ask doctors for advice on our bodies, and we ask math professors how to solve complicated algebraic problems. However, when it comes to financial predicaments, people often receive guidance from their parents or close friends who are likely not qualified.

To put this into perspective, around 10% of Americans hold  70% of the countries wealth. From this data, we can conclude that some Americans are more financially literate than others. Therefore, there is a considerable chance that you are following bad financial advice that is keeping you poor.

Distribution of wealth in the United States 1990-2020 Published by Statista Research Department, Jan 20, 2021 In the third quarter of 2020, the share of net wealth in the United States held by the top 10 percent increased slightly from the previous quarter to 69.2 percent. At the beginning of 1990, this figure stood at 60.5 percent. During this period, the wealth share of the 90th to 99th percentile remained broadly constant at around 37 percent, while the share of the top one percent increased from 23.5 percent of net wealth to 31 percent. Distribution of net wealth in the United States

What Advice is Keeping Me Poor?

  1. Don’t buy that. You can’t afford it. – The advice that you can’t afford to have nice things or have a good time shuts off your brain from creating solutions. This will result in a self-fulfilling prophecy.
  2. Investing is for wealthy people. – Thinking that investing is only for wealthy people will lead to huge missed opportunities in your life. Wealthy people invest because they know the power of investing and how it can build wealth.
  3. It takes money to make money. – Believing that it takes money to make money turns off the creative part of your brain. Without creativity, you will avoid solutions for building wealth.
  4. You don’t have the right connection to make it. – Believing that you don’t have the right connections and, as a result, you can’t be successful is lazy thinking. This is because you have the power to change with whom you have connections.
  5. You have to be born a genius/talented to make it. – Thinking that all successful people are born geniuses or talented is false. Furthermore, this idea disregards the dedication and practice that successful people put into their craft.
  6. You have to win the lottery to get rich. – Assuming that the only way to get rich is by winning the lottery is ignoring how seemingly every successful person has built their wealth. Believing that you need to get lucky to have money will keep you poor.
  7. The government/society doesn’t want you to be wealthy. – Using an excuse such as other people is why your inability to build wealth eliminates the will to create solutions.
  8. Don’t worry about money now, enjoy your life. – Although money is not the most important part of life, it has a significant role. Therefore, Ignoring money will result in more difficult times and lead to less enjoyment of life in the long run.
  9. You weren’t born with rich parents, so you can’t be wealthy. – Believing that the only way to have wealth is by being born into a rich family is illogical. This thinking ignores how the family originally got their money. Clearly, at some point, a generation in the family’s history created wealth from nothing, and so can you.

What Advice is a Good Alternative?

  1. Think about how you can afford it. – If something is out of your price range, think about how you can make the purchase happen. This opens your mind to solutions such as increasing your income, decreasing your spending on other things, purchasing with a friend to decrease the cost, etc.
  2. Start investing now. – Investing builds over time, and the earlier you start, the larger your wealth can build. So starting soon gives your money time to compound and grow.
  3. There are a lot of ways to make money, be creative. – There are truly so many ways to make money if you are creative. For example, you can trade your time for money, sell a product for the money, exchange information for money, invest in something that will increase value, etc.
  4. You can create good connections to help you make it. – Having connections or a network of intelligent colleges can help propel you into success. Building these connections is something anyone can do by providing value and with consistent effort.
  5. You can become a genius/talented with practice. – Talent and knowledge are both things that develop over time with repetition. Therefore, practicing your skills and expanding your knowledge consistently will result in success and wealth.
  6. Wealth is built over time, and anyone can do it. – Building wealth, in most cases, is done with good habits and over a long period of time. Anyone can build wealth if they learn good money habits and are consistent.
  7. You can overcome obstacles and doubts others have. – Believing that you can overcome obstacles such as doubters will lead to success. Having faith in yourself will drive you to create solutions to surmount any obstacles.
  8. Build your wealth now so you can enjoy the rest of your life. – Having money gives you freedom. With sufficient money you don’t have to work 40 hours a week, you can travel to new places, etc. Spending some time building your wealth now will give you the freedom you desire for the rest of your life and likely for your kid’s lives.

Who Should I Get Advice From?

Finding good financial advice is essential to building the wealth that many of us want. This kind of guidance can be found in various forms, such as a successful mentor, a reliable blog, validated financial books, trusted YouTubers, financial courses, etc. In conclusion, be aware of the financial recommendations you are receiving and who it is coming from. Learn only from those who are doing what you aspire to achieve and start avoiding advice that keeps you poor.

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