There is so much bad financial advice out there. I get pissed when I hear terrible financial advice on TV. How many of these advisors are actually rich? Should you really be listening to their advice? When it comes to advice about money, the most important thing to remember is to consider the source.
Much of the financial advice you’ll hear will come from people who work for mutual funds companies, and their agenda is to get you to put your money into mutual funds, They have their own agenda that doesn’t involve your best interest.
Below are some of the most common financial tips that will actually make you poor:
1. “Always Find Ways To Save Money”
You always hear tips on how to save money. “Make your own coffee in the morning instead of going to Starbucks”, or “Bike to work instead of driving.” The reason why this is bad financial advice is because the more focused you are on saving your money, the less focused you’ll be on making money.
Let’s say you do stop buying a coffee every morning, so you save about $100 per month. So what? Saving $100 per month won’t make you rich. You’re only saving just over $1,000 per year. That’s not going to help you afford to buy the house that you want or the car that you want. It’s not enough. It’s not significant. A penny saved is still just a penny. If you’re so busy counting your pennies, you’ll only have pennies.
You don’t have a saving problem; you have an income problem. Developing a high-income skill is the best way to solve your income problem.
2. “Put Your Money Into Mutual Funds”
Putting some money away in a mutual fund won’t get you rich. If you put a bit of money into a mutual fund every month for 10, 20 or 30 years, what will happen? When you retire, you will be okay. Not even comfortable. Because of inflation, you won’t be rich. Hopefully, if the market doesn’t crash, by the time you retire you will have a little bit of money to live off of. If the market does crash, your entire life savings will vaporize, just like that.
Mutual funds companies want you to believe that putting your money into a mutual fund is great financial advice. Why? Because they want to keep your money for as long as possible, because they make money off of your money.
Hustling will only make you tired, not rich. If you develop a high-income skill, you can make very good money without working around the clock. Without hustling every hour of the day. It’s ok to have a side hustle to generate extra income, but don’t think that hustling around the clock will get you rich.
If you read my book F.U. Money, which you can download for free here, you will find out more about the importance of developing a high-income skill. This is how you can secure your family’s financial future. This is how you can have the lifestyle you want.