You Must Understand Money Better. Most people are completely ignorant when it comes to money.
It’s like playing a board game with the wrong set of rules. Or trying to follow directions using a map from a different city. No matter how exactly you follow the rules or the directions, YOU WILL NEVER WIN.
And the problem is that the rules of money that most people have been taught are WRONG.
How do I know? As yourself these questions (and answer honestly).
Lie #1 – The lie you believe is you need to take more risk to increase your returns. And maybe you blame your mediocre returns on the fact that you are just not a risk taker.
The truth is the wealthy are doing the EXACT OPPOSITE. They work to hard to take the lower their risk in order to make more. You need to LOWER your risk.
Lie #2 – The lie you believe is that you need to buy low, sell high; dollar-cost averaging; diversified asset allocations; be able to read charts or company reports; etc, etc, etc.
The truth is the wealthy spend very little time following the market and know how to make money regardless of market fluctuations. You need to learn how to Make Money, not earn it (via speculation or long-term trends).
Lie #3 – The lie you believe is that you need to fund 401(k)s, IRAs, or other tax advantages plans in order to save on taxes.
Truth is 401(s) and IRAs will force you to pay MORE taxes and the wealthy never use these vehicles to save taxes. You need to pay LESS taxes.