What would happen if I stopped working
Those who work hard enough will one day get rich. Many Germans dream of this. A fallacy. Find out which mistakes you keep making here.
Even as a child, many were told that if they are hardworking and work a lot, it will one day pay off - and they will reap the laurels for all the hardships and hardships. But it's not that simple, says US financial advisor Ric Edelman. His thesis: diligence is nowhere near enough - and is only one factor in the equation for the big windfall.
"If you work very hard all your life, you will never get rich," he tells the BusinessInsider. "It is not enough if you work a lot to make money - which you just put aside in the end." Every day he sees people who fail on the way to the pot of gold - only because they keep making the same ten mistakes over and over again.
Mistake number one: You work a lot, but not smart
In order to get and stay really rich, Edelman recommends to work a lot and above all intelligently. Specifically, that means: The hard-earned money to invest in stocks or to pay into a pension fund.
With this method, you can make your money work for you - and earn even more in the end. "You can do it without taking a huge risk or investing a lot of time or effort," says Edelman.
Mistake number two: You pay more attention to saving than to earning
If you also want to work intelligently, you should concentrate less on saving and instead increase your income. Saving is a smart way to end up having more money, but many people lose sight of their earnings completely. That would never happen to rich people, explains self-made millionaire Steve Siebold.
"The majority are so eager to collect discount vouchers and live frugally that they miss out on great opportunities," says Siebold. On the other hand, if you want to think like the rich, you'd better "stop thinking about the fact that money could be scarce and instead concentrate on increasing it."
That's why rich people would always try to get one to show smart savings behavior and at the same time find several possible sources of money.
Mistake number three: you're buying things you can't afford
Those who constantly live beyond their means and squander money will never get rich. That sounds plausible, but people still often fall into this trap. So if you have a If you receive a raise or something similar, you shouldn't take this as an opportunity to lead a more expensive lifestyle.
"I only bought my first luxury watch or my first luxury car when my business and investments turned out to be a secure source of income," reports self-made millionaire Grant Cardone. "I still drove a Toyota Camry when I became a millionaire. Be known for your work ethic - not the status symbols you buy."
Mistake number four: You are content with a mediocre job and salary
Most people are white-collar workers and have a monthly or hourly salary. The rich, on the other hand, are mostly self-employed and get paid for their projects. "Of course there are also world-class executives who get hourly wages, but for most of them it takes a snail's pace to get rich - even if it is touted as the safest," says Siebold. "But most of them know that self-employment is the fastest way to get rich."
So while the rich would take risks and dare to step into self-employment, the majority lead a life of financial mediocrity - with a modest wage and possibly annual salary increases.
Mistake number five: you still haven't started investing
Many forget that not only make money, but also make it invest properly, is important to get rich. And the sooner you start, the better. "On average, millionaires invest around 20 percent of their annual household income," writes Ramit Sethi in his New York Times bestseller "I Will Teach You To Be Rich".
"Your wealth is not measured by the amount of money you make each year, but by how you have saved and invested it," Sethi concludes. A dynamic investment fund with a fixed maturity, a so-called life cycle fund, is enough.
You can also find out what other things you can do to stay rich.
Mistake number six: you are chasing someone else's dream - not your own
If you want to be successful, then you should also be passionate about what you do - that means being able to name your passion and then to pursue it. Far too many people would listen to others or submit to them, for example their parents. "If you pursue someone else's dream or goal, you will probably end up being unhappy with your decision," says best-selling author Thomas Corley.
"Your performance and salary will reflect that. You will struggle with your livelihood and struggle financially. Since you simply do not have the passion that is necessary to be successful."
Mistake number seven: You are not taking any chances
If you want to get rich or get ahead in life, you have to get used to facing unsafe or uncomfortable things. "Physical, psychological, and emotional comfort is the primary goal of middle-class thinkers," Siebold believes.
Did you know that you can tell if you are rich or poor? You can find out why here.
"But world-class thinkers learn early on that becoming a millionaires is not easy and that the need for security is only a hindrance. They therefore learn to feel comfortable while constantly exposed to unsafe situations." So if you want to be successful, you have to overcome your fears and take well-calculated risks.
Mistake number eight: you have no life goal
What do you want to do with all that money when you have it? Buying a house or traveling the world? If you don't have a specific goal, you don't know where to start. However, a financial plan only makes sense if you know where you are headed. Then you can tackle it with full energy and make your dream come true.
"The main reason a lot of people don't get what they want is because they don't even know. The rich, on the other hand, know full well that they want to get rich"reveals T. Harv Eker, who is also a millionaire.
Mistake number nine: you spend the money first - and save what's left over
If you want to get rich, you have to think of yourself first. "Most people pay everyone else with the money they earn," says self-made millionaire David Bach. "They pay their landlord, their bank, the phone company, the government and so on." On the other hand, from now on you should start saving before you spend your money.
David Bach's tip: Put aside an hourly wage per day, for example in a fund as a nest egg, and place a standing order. This means there is less to do - and your money will grow on its own over time.
Mistake number ten: You don't even believe in getting rich
"The average person believes that being rich is a privilege reserved only for the lucky ones," explains Steve Siebold. "The truth, however, is that in a capitalist country you have every right to be rich if you are willing to create tremendous value for others."
So instead of leaving wealth to chance, you should start with it to believe that you can do it tooSiebold advises. Next up, you should aim high. Because that's what rich people do:have great expectations of yourself, Siebold concludes.
Read here what millionaires would never tell you.
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