The Misguided Beliefs About Financial Success

“If you want to be financially free, you need to become a different person than you are today and let go of whatever has held you back in the past.” — Robert Kiyosaki.

Certain ideas are commonly held about how to achieve financial success, such as the belief that one must study hard, get a high-paying job, save money, pay student loans, take short vacations, and get back to work. However, these beliefs are not always accurate and may not necessarily lead to financial success. They are often passed through generations without being thoroughly evaluated, causing many people to follow them blindly. It is important to carefully consider these beliefs and be open to alternative approaches to achieving financial success. Many parents may discourage their children from starting their businesses or investing, believing that it is too risky and that the only way to achieve financial success is through a high-paying job. We can’t blame our parents because beliefs are passed to them without being thoroughly examined. Some parents are resistant to this idea. We should try to educate them about the various ways in which people can make money and help them understand that there are alternative approaches to financial success. However, we should also respect their opinions, and if they continue to insist, we should not let their beliefs hold us back from pursuing our own goals and aspirations.

Embrace your unique qualities and recognize that there are multiple paths to financial success. Remember that you have the knowledge and understanding of how to achieve financial success. Do not let others’ beliefs or experiences limit your potential.

Some people may believe that a high-paying job is a key to financial success, but they don’t realize that this job could also become a prison for them. While a high income may seem desirable, it can also come with demands and constraints that prevent individuals from pursuing other goals or interests. Additionally, financial obligations such as student loan, taxes, expenses, and mortgage can create financial constraints and make it difficult for people to pursue their goals or choices about how they want to live their lives. It can lead to a sense of financial insecurity and hinder their ability to achieve financial success and freedom.

The belief that all debt is inherently negative is not accurate, as there are two types of debt: good debt and bad debt. The belief that debt is always bad has been passed from generation to generation without considering the distinctions between the two types. “Bad Debts” are used to buy things that don’t provide any benefit or value to them, resulting in the classification of the debt as a bad debt. “Good Debts” are the ones that the wealthy use until today. Wealthy people believe that using debt in assets such as real estate or businesses can be a more secure and potentially lucrative way to achieve financial success, as they have more control over the leverage in these investments. In contrast, investments such as stocks or cryptocurrencies can be riskier because the leverage is not under their control. By choosing assets that allow them to manage the leverage, these individuals aim to minimize risk and maximize the potential for high gains. However, it is important to note that all investments carry some level of risk and it is essential to carefully consider the potential risks and rewards before making any financial decisions.

Some people believe that saving money in a bank account is a sure way to become wealthy, as they are relying on the power of compound interest to grow their savings over time. However, this perspective may not take into account the current economic realities, such as low-interest rates and high inflation, which can erode the value of their savings. It is generally a good idea to save some of your money for various purposes, such as paying taxes, covering insurance expenses, saving for a vacation, or dealing with unexpected expenses. One way to do this is by setting aside money in a savings account. However, it is important to be aware that traditional bank savings accounts may not always be the best choice, as online savings accounts may offer higher interest rates due to their lower overhead costs. Therefore, it is advisable to carefully consider the various options available and choose the one that best fits your needs and goals.

In summary, it is important to carefully evaluate commonly held beliefs about financial success and be open to alternative approaches. A high-paying job may not necessarily lead to financial success, as it can also bring financial constraints and a feeling of being trapped. Debt can be good or bad depending on the type and purpose of the debt, and saving money in a bank account may not always be the best way to achieve financial success, especially in an environment with low-interest rates and high inflation. Embrace your unique qualities and recognize that there are multiple paths to financial success. Consider the potential risks and rewards of any financial decisions and be mindful of your own goals and aspirations.