I worked in banking for most of my career, and as bankers, we used to laugh at savers. That’s a truth I don’t like to admit.
It wasn’t because we liked being right or thought we were smarter; it was because it was a perfect example of how bad our education is when it comes to money.
We’re taught laughable misinformation about money and then we go out into the working world to dedicate our career to earning it.
If you’re working for money and you don’t understand how it works, it’s going to hurt you in so many unexpected ways. You have to move away from the mindset that “saving is good.”
There is a much simpler way to think about your money that will set you up financially and allow you to stress less and work less if you choose (not financial advice). Here we go.
It’s Not About How Much You Make
You can make lots of money and still lose the lot if you don’t understand how it works. Many famous people like Mike Tyson made plenty of money and still ended up broke.
Lottery winners are more likely to end up bankrupt within three to five years of them making millions of dollars, than the average person. I know guys making $500K a year who, when this recent recession hit, started running out of money real fast.
You can make plenty of money if you’re connected to the internet by creating content, setting up a website, starting a podcast, promoting other people’s products, writing eBooks, running virtual summits — the list is endless.
Making money is the easy part to understand.
It’s Not About How Much You Save
If you take the simple approach of making money and then saving it, it’s not going to end well for you.
This image perfectly describes why saving money will destroy you financially.