Isn’t it ironic that poor people advise on how to be rich? It’s no brainer that the result of the blind leading the blind would end in tears. This is why you shouldn’t take financial advice from broke people.
The worldview of poor people is reflected in their advice. According to research, the mindset of poor individuals differs in four ways, hyper-consumption, no value-added, no ownership, never/always belief system.
Hyper-consumption: Hyper-consumption is a characteristic of poor people. They are on a fixed income. They never put their money into investments and rarely save it.
No Value Added: People who have a poor mindset do not add value to the world. They will always look for ways to benefit themselves. They don’t stop considering what it’s like to be in someone else’s shoes.
No ownership: People with this perspective are hesitant to accept responsibility for their mistakes. They are ready to point the finger at others to avoid potential consequences.
Never/always belief system: They are conditioned to think in terms of extremes due to this belief system. As a result, poor people always think of extreme negative in every situation they find themselves in.
Here are 7 foolish pieces of advice poor people give.
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1. Investing is extremely dangerous
Gambling is truly risky, whereas investing is not. Entrepreneurs debunk the misconception that they are risk-takers by doing everything to minimise risk.
Risk is reduced through education, resources, and know-how. You are not investing but gambling if you do not have any of the three.
You may believe that investing is only for the wealthy, but this is untrue. Anyone can make a financial investment. You can put your money, time, or effort into it, or any combination of the three.
Investing is not just for the wealthy; it is also for those who learn to manage their finances. Poor people often say, “Only invest in things you can touch,” but a better way to express it is “Only invest in things you understand.”
2. Find a good job and keep it
If you have a job but are still poor, you should examine your alternatives, you either need new work, or you need to quit wasting all of your money on frivolous purchases.
They advise you to pursue a career as a doctor or lawyer because they grew up seeing successful people working in offices.
The biggest myth preached to this age is that you will get wealthy if you get a good job. This is not true. Employees are never as rich as the owners and stockholders.
3. To make money, you’ll need money
This is how the poor rationalise their lack of financial resources. Indeed, going from $0 to $100,000 is purely a matter of willpower.
They don’t tell you that you don’t preserve your money; you spend it to make your time more valuable.
When poor people have extra money, they treat themselves to a break from their pain, but often dig themselves deeper in the process. You don’t need money to make money; instead, you’ll need skills and time.
4. Pursue your passion
Instead of following your passion, pursue the money and add some passion on top. You’re better off doing some things for money and doing your passion on the side.
Being misled to the point where you waste years of your life that may ensure future safety and flexibility is a bad trade.
5. Slow and steady wins the race
The goal of any race is to see who can reach the finish line first. That way, you’re in a race against the clock to see how you stack up against the competitors.
The rabbit always defeats the turtle; yet, because it is a work of fiction, the race in that fabled story did not take place.
To succeed in life, one must be adaptable, determined, and capable of overcoming challenges. The race is won by those who are swift and concentrated, not by those who are slow and steady.
6. Becoming rich is a matter of luck
It is a question of chance to be born into a wealthy family. Getting rich, on the other hand, is an entirely different story.
In life, luck is essential, but so are timing, discipline, attention, intellect, and markets. Poorer people are caught up in the luck factor. That’s why you’ll often find them playing the lottery or scratch tickets.
If you’re poor and want to become wealthy, you must make your own luck.
7. Save it up to buy something you really want
Don’t be the person who carries a purse worth $25,000 but doesn’t have $25,000 in it. Saving money appears to be a good idea until you realise that money is becoming increasingly useless.
Invest it instead of saving it in your app or stuffing it under your pillow. Any trading program can be used to invest your money in a safe investment automatically.
The wealthy benefit from index funds, but the poor have no notion what they are. Cryptocurrency as an industry is gradually expanding, yet the poor continue to ignore it.
The only condition is that you do not gamble. Try not to predict the next 1000x stock or cryptocurrency. It’s a matter of learning what to do with your money to be content with your savings slowly expanding over time.
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