How and Why Most People Fail Part 2: Ill-Defined Ideas About Wealth and Money

In my blog, I talk a lot about developing a wealth mindset and how it can help you create wealth. When you think about wealth, what are the first things that come to mind?

I hate to break it to you, but if you’re like most people, you probably hold wrong ideas and misconceptions about wealth.

It’s okay! You’re not alone, but if you want to be wealthy one day, we’re going to have to fix these ideas.

It’s these very ideas that are the cause for failure. People get into the wealth creation game, and they are destined to fail from square one because of their mindset. Let’s go over a few misconceptions that people have, and I’ll propose the (correct) alternative thought that will suit you better in the long run.

Wealth is Only for the Greedy

This might be the number one misconception that I’ve heard over the years. The media is always perpetuating this idea, so many people wrongly assume that if you are wealthy, it’s because you’re a terrible person and stepped on people to make that money.

I’ll admit, I used to believe this same thing. I’d drive my beat-up car to work in the morning, and along the way, I’d stop next to BMWs and Jaguars at the stop light. Each time that I saw one of these cars, I glared at the driver because they must be some greedy, unethical monster. There’s no way they got a nice car like that by doing the right thing. They ripped people off, they cheated people, or they were given it to them by their wealthy parents.

In reality, these people probably worked incredibly hard day in and day out to earn what they have. They played by the rules, and by using their innovative and creative mind, they were able to find a way to build wealth. Even after they’re wealthy, they still are careful in their investments and follow specific principles.

It took me years to learn this, but luckily you landed on this blog page so you can skip a couple of steps. All joking aside, if you want to become wealthy, you can’t think of it as “selling your soul” or becoming a jerk. Instead, you need to find a moral and ethical way to create money.

Wealth Just “Happens”

The second reason people fail is because they think that building wealth is a passive activity. Sure, there are tons of ways to create passive income, but to set up that income stream, you need to do some legwork first.

Here’s what I mean: people wrongly assume that if they just shift a few things around in their investment portfolio, it’ll turn into millions. The sad truth is that you need to work to build wealth actively; it won’t just come to you. As the old saying goes, money doesn’t grow on trees, and wealth doesn’t just increase over time without your input. The responsibility is on you to adopt a wealth mindset and start making moves to build this wealth.

Stay Tuned

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Resources:

https://www.investopedia.com/terms/p/passiveincome.asp

https://www.investopedia.com/articles/financial-advisors/051215/look-how-ultrawealthy-invest.asp