The biggest lie about money. Make Money lesson in 2020
The biggest lie about money. Make Money lessons in 2020.
I have listed these 5 biggest lies about money, that you won’t learn at school, but in real life and experience of successful people.
1. You’re throwing your money away on rent.
This conception may sound wrong when you first hear it, but actually the reality is that if you are doing it right, you’ll understand it better. Here is the first scenario in real life than in the end you will understand it is better to rent than buying your own house through a loan or one-time payment or cash which is really impossible for not millionaires.
There are 2 guys with one hundred dollars. The first guy bought a house with 1 bedroom for 70 thousand dollars and the remaining 30 thousands he spent on house furniture’s and furnishings and other home essentials and getting zero money at the end and now need to work again to his day job to sustain monthly bills, house maintenance, and many more things.
While the second guy, rented a 2 bedroom house with complete furniture and fixtures for 400 hundred dollars a month, a total of 400 times 12 months equal, four thousand eight hundred only. saving almost 90 percent of 100 hundred thousand and the remaining 50 % he invested in stocks and the remaining money is for other monthly living expenses and for savings. And he also rented another bedroom to Airbnb and get half of the payment in his rent. After 1 year he repeated what he does and get a new 2 bedroom apartment and rent it out while the old 2 bedroom apartment he rents it out fully and now earning from it while someone is paying rent for it. After 1 year he gains from stock and reinvest it again to create new business and in stocks.
Now You see that buying an expensive house immediately costs you a lot and make sure before you buy your first house it will help you create income and not just another liability but make it into an asset. Be wise like the second guy who just rents out first but after creating new income sources for himself then you can finally buy your first house and make it to an asset. Then repeat the process.
2. Buying a home is always a good investment.
Wrong, but maybe Right if you do it correctly. So, why it is wrong when you will buy your first own house and it is a really good investment because you won’t pay for rent but you will have your own place. You see like the first scenario above, you should learn to differentiate the meaning of investment than a liability. investment is connected to assets, meaning it helps you make money, but if your house is just for yourself and won’t create income for you then it is not a good investment. You see the correct way to do it is if you buy a house or build a house that will create a new source of income like, make the front of your house a store or turning extra bedrooms to rented spaces on Airbnb, or turning one part of your house into a home office that helps you build and to do your business or service at your home while saving office space rent. Lastly, always make sure you check your local city progress so after you buy the whole house you can still sell it higher than you bought it or at least it doesn’t lower than how much you pay it.
3. You need a lot of money to start investing.
No! You don’t need a lot of money in investing, some millionaire are working smart to create investment without using their money. The best example is the guy who creates a business plan for a lot owner having a 1 hectare of a lot within the city, that he doesn’t know what to do about it. But that millionaire offers a great business plan and he wants to turn it into a food park, he tells the landlord that he knows a lot of food stall owners who need a place to rent and with a good amount of people to market their food and a contractor builder that agree for pay now build later to renovate that land turning into a food park without the owner and the millionaire using money but only smart way to make money and business without investing money at the early stage. So, after they finish the food park, the food stalls owner rented it out and people start buying from it and eat with friends and family, and also the city create a ned food park. Now the Landlord earns from rent and pays the contractor after finishing the project and get a trio. Then the millionaire earns money from just managing the food park represented by the owner. You see, if you have a great idea or work smart you can start investing without money. There are a lot of new and old ideas out there you just need to think about a great idea and apply it to my friend and you can do it. Also, there are many buy and sell business or business to business companies out there or as a middle man that can help you earn money and then after creating money know you can invest to investment that needs money first like stocks, real estate or creating an online business or local business.
4. Investing is complicated and only for the wealthy.
I would say investing is for only people who have the right mindset and rich thinking. What do I mean from rich thinking, there are people who have poor mindset and thinking, they always tell themselves that they can’t do it or it is hard for them even they don’t try it first. While the rich mindset and thinking, that he can do it even it is hard I will try and try, if they can do it I can do it, I will do something that helps me learn new things every day and one day reach my financial goals and have financial freedom. Jack Ma one of the richest people in the world never gives up even though they have a lot of failures but always tell that they need to get a lot of mistakes and failures to reach success. You see, many people only see other success but not the, behind the scene in how they have attained it by working smart, working hard, prayers and never giving up and never stop believing in themselves no matter what failure, trials or things that would stop them. I would say if you get tired, you can rest but never stop doing what you believe in. Never stop dreaming and working hard my friend. You’ll be able to it in due time.
5. Student loans are good debt.
I don’t mean you need to stop studying in your school and just drop out instantly. But, you see there are many millionaire dropouts but you see they have their own strength and skillset and talent that they love doing that they don’t see on studying at a school, but they just start doing what they love. The right thing to do is to follow what our hearts want and follow our dreams, then the money follows. And not what other people are doing that they only follow the money and not their dreams. You can study while working on the side hustle and also having the right mindset on what you really want to do in life. This will then help you while studying and then paying your student loan faster and easier after you graduate. You see our school system is made to make us study then become a modern slave after learning some shits on school with fake teachers. Fake teachers that don’t teach well and just tell all about theory but not the real-life application of what we study in the schools. You better understand this after your graduate when you are reading this as a student and you will laugh at this when you are already working and realizing you waste some years on your school days. But if you are reading this as a student make sure to understand and read more on how to make money and how money works to a website like us and similar websites or vlogs.