Have ever stopped to think about how the rich get rich?
How college dropouts become wealthy and successful, while others who follow the traditional path do just ok but not great?
You probably thought you did everything right by going to school and getting a good job. Turns out many of us have been holding on to common misconceptions about what it takes to be financially successful. In this post, I’ll show what mistaken beliefs can keep you from getting financially ahead.
Misconception #1:
“I don’t need friends, just a strong will”
Our society is bombarding us with the idea of the lone entrepreneur. From the movie The Social Network, to anything ever written about Steve Jobs, we’re quietly absorbing the idea that being financially successful is an individual sport.
We get this idea that the path to financial freedom means locking yourself in a basement and hustling alone to get your project off the ground.
While it’s true that we need a strong resolve in order to get ahead, we also need people to support us in getting there.
Build Rich Relationships
We have to remember that getting rich isn’t just about financial stability. It’s also about creating a rich life, having balance, and enjoying time with friends and family. Working with people who are either already there or are working towards this goal accelerates the time it takes for you to achieve this goal.
Here are a couple of ways that the right friends can support you in getting in becoming financially free:
Get Farther:
Working with other who have different strengths that help you get farther than just working alone
Get more done for less:
When you work with others who are better than you at a thing, they can give you tips and tricks that you’d otherwise have to pay or hire for.
Motivation:
We all need a pick me up for days when we aren’t our best. Working alongside someone with drive and motivation can make all the difference in reaching our goals.
It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
-Warren Buffett, Ultra Wealthy Investor (You know who he is 🙂 )
If you want to go fast, go alone, if you want to go far, go together.- African Proverb
Misconception #2:
“Hard Work pays off”
Hard work gives us a false sense of worthiness. Lots of people pride themselves on putting in long hours. They wear their tiredness as a badge of honor, in an effort to prove their usefulness to society. But have you ever noticed that these people typically aren’t financially free? Unfortunately, they are usually the same people who complain that they are overworked and underpaid.
Be Impactful
What I’ve learned is that there’s a difference between working hard and being impactful. Working hard means getting the job done. Being impactful means getting the job done in less time, less energy, and/or less money. By being impactful, you free up your time to learn and become more valuable. Instead of becoming inundated with routine tasks, you are more free to take risks and get creative. And the more effective you are, the more payoff you receive. So if you’re looking to make more money, don’t double your efforts by working hard, become impactful.
Find out what actions are most effective to getting you towards your goal and look for ways to do those actions.
Do the least amount of work to get the maximum benefit – Will Smith, Actor, Musician, & my personal fave
Misconception #3:
“A job is the safest & best way to financial security”
Yeah… definitely not since 2008.
Having just one job seems like a responsible decision until you look closer.
- Your company could go out of business
- Your company could decide to move your business unit offshore (I’ve seen this happen)
- You are not in control of how much you can make, there is a cap on your salary
- You have to be at your job everyday in order to continue making money
Multiple streams of income
If you want to be financially independent, you need to be making money from multiple places. Those who have attained financial wealth more often than not maintain more than one income stream. This means they own a rental property, have financial investments, have several side hustles, or some other form of passive income that they can capitalize off of.
Don’t get me wrong. Its perfectly fine to continue working a 9-5. But its even more responsible to diversify and find ways to earn multiple incomes.
There you have it, common misbeliefs that keep you from reaching your financial goals. What are some other misbeliefs that you’ve come across? Leave me a comment below!
