A lot of people have false beliefs when it comes to money these false beliefs
have long been in existence and with financial education not
regarded as an essential subject they have been established in many minds
these ideas have turned to myths as no one can tell from where
or from whom they came because of this you may have ended up believing these
myths about money which result in a subconscious altering of your thinking
these myths affect how you make money decisions thereby preventing you
from creating abundance but luckily boss in this video i'll be sharing with you
10 money myths you need to stop believing
and if you're new to the channel then hit the subscribe button below for more
life-changing content myth number one you should avoid debt
at all costs this here is not only a myth but an
actual lot yes banks are created to feed off our expenses by generating money
based on interest however you have to understand that you cannot
attain abundant wealth by using only your own resources
which are knowledge time and money every billionaire recognizes that he or she
must leverage other people's time knowledge and money too
and the truth is other people's money is generally borrowed with interest
here's an example of how interest can help you get ahead let's say you start a
new project and take on a loan with interest
to fund your endeavor yes you'll have to make interest payments on the loan but
if you can get your project off the ground
and make more than enough profits these profits should easily cover the interest
fees meaning that paying back this debt won't be an issue
world billionaires have been doing this for years because debt is not always a
burden it is often a powerful money generating
tool this is why almost all major businesses
have debt on their balance sheets because
this is leverage that they can use to get ahead therefore
sidestep the myth that you should be avoiding debt at all costs if you
presently think this is the case myth number two your home is your best
asset this is arguably the most controversial
money myth out there however it must be said that your home is not an
investment a home is necessary as it's where you
and your family live and once your mortgage is fully
cleared it will be outrightly yours however until then
this home will be pulling large sums of money from you in the form of mortgage
payments for years to come this is aside from the
fact that you also be covering a host of other housing bills as a homeowner
of course i'm not suggesting that people stop buying homes for themselves
if the money is available you definitely should get yourself a home however
that purchase shouldn't be considered profitable for the simple reason that it
takes money out of your pocket instead of the other way around
the good thing about owning a house is that it offers you a comfortable place
to live and some housing stability but that's
about it remember whatever doesn't put money in your pocket is not an asset as
far as investments are considered and your house is one of those things
myth number three gold and other metals are
safe havens it should be a general fact that all investments come with risk
some with higher risk than others of course and
the best ones offer the highest returns for the lowest risk
many people view precious metals as an asset class that falls into that
category but this may not be entirely true last year
gold recorded its worst week in the market in
30 years the supposed safe haven joined the global market collapse that
saw investors pulling their money out of desperation spot gold dropped 2.9
percent and ended the week with 8.6 percent losses
the other metals that joined gold in the bear market were silver
platinum and palladium the fact is these precious metals are only suitable
investments because they have low risk but
there is no such thing as a safe haven when investing this may seem
inconsequential but it's just an example of how bad
something's so good can become a prudent investor has to learn to surf
the market wave and stay afloat in all circumstances
the event saw precious metals being stripped of their traditional safe haven
status on a large scale however a credible investor already knows that no
asset including gold can guarantee any
investor profits in perpetuity myth number four cryptocurrencies will
make you rich yes it's possible to get wealthy through
cryptocurrencies but then again it's also possible to lose
every penny you invest how can these two statements be true
well as i do so well i'll explain in this video
similar to many other investments bitcoin and all coins are accompanied by
a host of risks that could thwart your investment dreams
the crypto market comprises of specific risks that aren't so prevalent in the
usual financial markets that incorporate more common assets like bonds and stocks
the crypto industry is fraught with scams and frauds who promise investors
high returns which are nothing but a fool's gold peddled as
legitimate blockchain projects if you bind to this myth your chances of
escaping the brutal losses that your predecessors suffered are next to zero
generally the success of crypto assets depends on if they eventually gain
widespread adoption and for presently all the coins in
circulation there's still a long way until this asset class as seen as being
sustainable myth number five money managers can beat
the market people like warren buffett and peter
lynch have attained great wealth by selecting individual stocks however
for every one or two investing moguls who have used the strategy to get ahead
financially there are millions more who have failed
you see beating the market is something very few investors can do
and there are two primary reasons for this the first relates to investment
fees for example assuming you follow the popular advice
of investing your money in an s p 500 index fund at best
the performance of your investment would be identical to that of the s
p hence when investment fees get deducted from your returns
you won't even be level with the market hence you'll fail in toppling its level
of returns the second reason people even fund
managers fail to beat the market is that there are simply too many
factors that affect the market on a daily basis
anything from a pandemic to a natural disaster could send a market reeling and
unless you have a crystal ball understanding how you can
avoid these impacts is impossible which again makes the task of beating the
market an uphill battle so unless you're
nostradamus and can see into the future the notion that people can consistently
beat the market is simply untrue myth number six rich
people are evil this myth must have its origins
and sentiments like it's not right that rich people live in
excess abundance while my family has nothing the truth is wealthy people
think and act differently than poor people
you can be angry and complain all you want or make the decision to learn what
the rich know and unlearn what the poor teach poverty
is and forever will be a big issue for many people
because financial knowledge is not widely taught and has little chance of
ever finding its way into our educational systems while they
should people generally don't discuss how and why the
rich are the way they are people just bind to the myth that they
are evil and must have done something terrible
to attain their wealth the way some people hold on to this myth
really shows that they do not realize that this particular myth was created
to keep them trapped in poverty best believe that an individual can be both
wealthy and good whenever you join the clique of people who put the rich
and evil in the same sentence you subconsciously kill your drive for
wealth for the simple reason that no one wants
to be evil in everyday dealings with people
you'll find as many wicked poor people as you would of the rich
get it out of your head that wealth comes from being evil yes
there are evil rich people but the same holds for the poor
myth number seven saving isn't worth it with small amounts
if you ask me when it comes to saving many people are their own biggest enemy
and thinking saving in small amounts is futile is a
terrible mindset to possess unfortunately many people think you need
to be making a ton of money to start saving but this is simply
untrue you don't get rich to save you should be saving to get
rich when saving the main thing is simply beginning
you just have to start with whatever you have no matter how little
as you progress it gets easier and with the correct information and advice
there's no limit to how far you can go as you get more comfortable saving you
can also begin to sharpen your capacity to
invest saving has more to do with getting started in persistence
and diligence it has very little to do with having a lot of money however
if you weren't enough to start big of course do it but under no circumstance
should not having huge funds be the reason you don't save
myth number eight you should avoid all risks when it comes to your money
simply put all successful entrepreneurs have to take risks at one point or
another if you have a chronic dislike for taking
risks you might as well start rethinking whether you're meant to be an
entrepreneur an infinite number of entrepreneurs at
one point or another had to take risks to keep their careers moving however
taking risks does not imply that you should go into business blindfolded
taking risks is not synonymous with being stupid and expecting positive
results risk taking as far as your money is
concerned involves hard work and careful planning
part of the advantages of not being afraid to take risks with your money
is that you'll not have to ask what if jeff bezos once said that he knew that
by 80 he wasn't going to have any regrets this is because he
understood that even if he tried and failed
it wouldn't be a regret but a lesson instead
for him regret comes from not trying something and wondering
what could have been if you had myth number nine living blow your means will
make you rich when it comes to the saying you must
live below your means the devil is truly in the details because on the surface
this sounds like great advice but is it really if you take a critical look at
the most ardent individuals follow this financial mantra
you'll find that many of them still struggle financially and this will
likely go on for the rest of their lives unless they change their mindset you see
living below your means may mean saving ten thousand dollars a
month or saving five dollars a month both indicate you're spending less than
you earn but one will set you up much better financially than the other
therefore go beyond the surface of the saving mantra and
aim to be someone who's got a sizeable gap between their income and expenses
so that you can enjoy all the benefits of being financially well
off myth number 10 you don't have to analyze your financial habits
having a better financial record goes beyond earning more money and if you
believe that you don't have to analyze your financial habits
change that belief after this video when it comes to your money
understand that you need organization proper budgeting and accountability
regarding your expenses and income you have to scrutinize how you handle
your money the fact is financial skills have nothing to do with making money
it's about handling it no matter the size of your paycheck if you don't
analyze your dealings with money you're doomed yes generating cash is the
first step in your journey to financial freedom
but if you refuse or fail to analyze your financial habits you'll
never get there thanks for watching if you want to go from the life you have to
the life you deserve then hit the subscribe button now