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5 Reasons You Are Poor

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Written by   36
5 months ago

Today i will talk about 5 reasons that are programmed into you, that prevent you from building wealth and staying poor. If you can make yourself aware of these things, it could help you to avoid these traps.

 

1. You think that Investing is only for rich people

Most people are told that investing is only for rich people and that you need alot of money before you can start investing. This is totally untrue, you can start investing from a very small amount of money at any time. It is also programmed into us that we should just keep our money in a savings account, but just a quick glance at the inflation figures for December will show you how savers are decimated by inflation.

 


2. Money is bad and you can only get rich through cheating people

This line of thinking comes from people do not want to spend the time and energy to build some wealth and find out how investing works. They label money as bad and because they are not bad, they don't have to understand how it works. In reality, money is neutral and just a tool that we can use to build wealth.


3. You are conditioned to get permission/acceptance before investing

It starts from when you are a young child that you are conditioned to ask permission or get some acceptance from your friendship circle before you will do anything. This is called argumentum ad verecundiam (appeal to authority fallacy).

Instead you should just go ahead and do what you think is right once you have researched it. This is all part of the "mimicry" school system that we have. Note that in the elite schools like Eton, they still teach the classical arts and the tri-vium.
There is a reason why the elite and rich don't want everybody to have access to the tri-vium as it would free you from this slave system we are in.


4. Taking wrong financial advice


Very often, people take financial advice from people who don't have any wealth or experience in building wealth. For example, the financial advisor at your bank may have a negative net worth and a huge overdraft. Why would you take financial advice from them? You should only take advice in all aspects of life, from people who have successfully done, what you are aiming to do. If i am planning to run a marathon, i don't ask someone who has never done sport before for advice! They would'nt be able to assist with preparation, diet and other fitness aspects to achieve the goal. You need someone who has walkws the walk so to say, not just talked the talk to assist you.


5. Investing is like a casino

 

This is a huge reason that people use to not invest. They feel that investing is the same as gambling at a casino. It is true, that if you goto a casino, it is very likely that you will lose. A casino is a lucrative business because the odds are adjusted in the casino's favour. However, if you look at the following chart, you will see that for some investments, the longer you stay invested, the more the odds fall in your favour:

Just look at how the probability of a positive investment in the stock market works in your favour after just 1 year! Of course there is risk, the same as walking down the street carries risk, but nothing compared to gambling in a casino.  As Denzel Washington says, nothing worth having doesn't involve some risk.

Summary

Those are the 5 points that are programmed into you from a young age. Do your best to change these things and you will notice quickly your wealth snowballing ever larger.

Key Takeaways:

  • Investing is for everyone, even with a low budget.

  • Money is neutral and only a tool for building wealth.

  • You do not need permission or acceptance to start investing.

  • Don't take advice from people who haven't done what you are aiming to do.

  • Investing carries risk, therefore learning to asses and calculate risk are important.

 

Thanks for reading, let me know your thoughts in the comments.

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Avatar for mypathtofire
Written by   36
5 months ago
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