Fifteen wealth myths that hold you back

There are so many common misconceptions that people just don’t question. 

In fact, there’s so much misinformation surrounding wealth creation, that in today’s episode, I’m going to debunk 15 common myths. 

If there’s one thing I’ve learned, it’s that you shouldn’t allow these kinds of blanket statements to hold you back. 

In this episode we’ll explore these statements and help you avoid the “woulda, coulda, shouldas.”

Money doesn’t discriminate; it doesn’t care who you are or where you come from. 

No matter what you did yesterday, today begins anew and you have the same rights and opportunities as everyone else to become wealthy.

Yet the sad reality is that the majority of Australians will never achieve financial freedom.

On the other hand a small group of Australian property investors become very wealthy.

Today I’d like to explore the common myths about money that hold many people back from achieving their financial goals.

Myth # 1: It takes money to make money

Many Australians have untapped equity in their homes that they can use as seed capital for investments, while others will have to learn the discipline of saving to get some startup capital. 

You don’t need a fortune to begin making your first million; you just need to commit to making a start and stick with it.

Myth # 2:  I don’t make enough money

Everyone makes enough money to become an investor. The truth is most people don’t have an income problem, they have a spending problem.

Look at your current wage and ask yourself; how much am I likely to earn over my lifetime?

You’ve got to start living within your means, paying yourself first, saving a deposit for a property and investing in order to break your current pattern.

Myth # 3: My job and superannuation will take care of my financial future

If you accept my definition of financial freedom as having enough passive income to finance the lifestyle you desire, without having to work; you will never achieve this through your job or superannuation.

Instead you will need to take control of your financial future by investing.

Myth # 4:  I’m not smart enough

In our country everybody has the ability and opportunity to become rich. 

To reassure you that an education doesn’t equal a financial fortune, here are a few multi-millionaires who never graduated from college: Bill Gates (Microsoft), Michael Dell (Dell Computers) and Steve Jobs (Apple).

Myth # 5: Investing is complicated

Developing your own financial freedom is only as complicated as you make it.

Investing is no different.

The key is to learn from the right people – those who’ve already achieved what you want to achieve.

The process is also simplified when you select an investment niche such as residential property investment and develop specialist knowledge in that area.

Myth # 6: Investing is risky

Many people speculate when they think they are investing – they buy a property in a secondary location or off the plan “hoping” it will increase in value. Speculation is risky.

On the other hand finding a property with an element of scarcity so it will always be in strong demand, in an area that has always outperformed the averages and buying it below its intrinsic value, is a proven investment strategy that minimises your risk.

Myth # 7:  You have to know how to time the investment markets

It’s often said that timing is everything when investing, but that’s not really the case. 

Have you noticed how some investors do well in good times and do just as well in bad times, while others do poorly in good times and even worse in bad times?

This suggests to me that it's not our external world that determines whether we make money; it's something inside us - our mindset.

Myth # 8:  The rich are lucky

The truth is that success in wealth creation is no more about luck than is success in anything else in life.

To become wealthy you have to be in control of your finances and not count on good fortune.

Myth # 9:  To become rich you must diversify

Wrong! Yet that’s what most financial planners suggest isn’t it?

Diversification leads to an average outcome.

Myth # 10: Paying off your house provides security

The problem here is that once you’ve paid off your house, you end up with idle equity sitting under your roof doing nothing; equity you could use as a deposit to buy an investment property and grow your wealth.

Myth # 11: All the good investments are taken

That’s not true – opportunities are always out there – in every market.

Sure, all of yesterday’s deals have been taken, but tomorrow’s deals have not. Someone will snap them up. Why shouldn’t it be you?

Myth # 12:  If you want to do it right, you have to do it yourself

There’s no such thing as a self made millionaire. All successful property investors have a good team of professional advisors and supportive mentors around them. 

The rich recognise that they can’t be an expert in all aspects of wealth creation, so they find a team of experts they can lead in order to help them achieve their goals.

Myth # 13:  I’ve done everything wrong! It’s too late

There are many success stories of people who conquered all sorts of adversity, or started investing later in life and ended up achieving financial freedom.

In fact Ray Croc was over 50 years old when he built his very first fast food outlet.

You might have heard of it – it’s called McDonald’s.

Myth # 14: Debt is bad

Most Australians believe debt is a dirty word, but not all debt is bad.

Savvy property investors know how to use good debt to buy appreciating assets.

Myth # 15: It doesn’t matter what I want – I just can’t do it

Subscribing to this myth is almost a guarantee of failure, because our beliefs and perceptions become our reality.

There’s no way money can know who’s in control of it, what their qualifications are, what ambitions they have or what they’re going to do with it.

Money is there to be used and spent, saved and invested. It can’t judge whether you’re worthy or not.

Now that you understand some of the myths that have held so many people back, the good news is you can do things differently. Choose to change your beliefs to produce outrageous results and reach every goal you set.

Links and Resources: 

Michael Yardney

Metropole Property Strategists

Metropole’s Strategic Property Plan – to help both beginning and experienced investors

Some of our favourite quotes from the show: 

“Despite what some people believe, it doesn’t really take a lot of money to make money.” – Michael Yardney

“Successful people come from different backgrounds and while some have university degrees, others never finished high school.” – Michael Yardney

“It’s never too late to learn how to invest. It’s never too late to overcome your mistakes.” – Michael Yardney

More details plus show notes here: Fifteen wealth myths that hold you back

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