There are many myths and incorrect theories surrounding wealth creation and people with wealth. Some of these may affect your goals of financial freedom and independence.
Here are some of the most common myths.
Myth 1: You need to have a top education in order to be wealthy.
There is no doubt that a good education will help you avoid disasters in your quest to create your fortune. However, simply having a good education is not enough. There are many university graduates and even professors who are not wealthy, while there are many business owners and company directors who have little education but who are wealthy.
To be wealthy you need to be able to convert your knowledge into money in the fastest and best manner. Many men and women, with little formal education and without university degrees, are captains of industries today and extremely wealthy. Bill Gates was a university dropout who had an idea, plenty of drive, and computer knowledge, which was turned into the Microsoft Empire today. He is now one of the world’s wealthiest men.
Myth 2: Hard work is all you need to be wealthy.
This is not correct. There are many people who work extremely hard, such as coal miners, fishermen on large fishing vessels, or office clerks who put in 60 hours a week for their bosses. They work hard, but most are not wealthy. The majority of employees in the work forces of the world are not wealthy, even though they work hard. Working hard for someone and earning a basic salary or wage can result in a reasonable standard of living, but most people still have a large mortgage to pay off, debts to meet and children’s education expenses, with little extra money to spare.
Myth 3: You will be wealthy if you own a business.
There is no guarantee that you can generate wealth simply because you own a business. Many businesses fail. In fact, statistics show that over 70% of businesses fail in the first 5 years of operation.
Many business owners are certainly well off and are able to earn sufficient profits or income from their businesses to meet all their needs and then have some to spare. A good business certainly provides a good option for increasing one’s wealth, but there is no guarantee because its success depends on many factors. These factors include; the type of business, the skills of the owners and the demand for the products and services in the marketplace.
Also, you have to look at the risk factor. If you go into business there is a good chance and if your business is successful, your wealth certainly can increase faster than if you weren’t in business. However, you have to realize that if your business fails, your wealth will not increase - it will actually decrease, because you will suffer losses and a depletion of your net worth, which would not have happened if you weren’t in business at all.
Myth 4: You need to be young to create wealth.
By far, most of the wealthiest people have amassed their wealth late in life, rather than when they were young. If you are in business you will generally need a few years before the business starts to be profitable and contribute to your earnings and therefore to your wealth. While many people become wealthy early in life, this is usually due to some unique event, such as having good fortune on the stock market, or being involved in high tech with a unique idea etc.
Most wealthy people find good fortune later on when they have reached 50, 60 or 70 years of age. Most men or women start to increase their net worth (and therefore their wealth) after they have reached 50. By this age they have made most of their business mistakes and have successfully fine-tuned their life and business experience, to reduce losses and to increase gains.
Myth 5: You need a lot of money at the start to create wealth.
While having a small fortune to start with provides an advantage - because money can make money (if properly managed), most successful, wealthy men and women started off with little capital. Many started their businesses in their garage or living room, either in a small house or even in a flat or apartment. Many went on to develop huge business corporations and empires that today are worth many millions of dollars.
Many factors contribute towards success, and money is only a small part of it. You may have all the money in the world available to you, but if you do not have a vision, or a proper plan and the drive to achieve your goals then chances are, the money will not grow and no wealth will be created. Money certainly helps a lot, but it is not always the key factor to creating wealth.
Myth 6: You will create wealth when you have learnt more because that will give you a better success rate.
Most successful men and women will tell you that you’ll wait until doomsday and never be successful unless you put a plan in place and start. Knowledge and experience is certainly helpful, but drive and commitment are even more important.
Many wealthy people today went through one, and even two or more bankruptcies (they learnt as they went along) before they found the formula for success and started to create their wealth. If you have the desire to succeed and the will to commit your time and energy to achieving success, there is no reason why you cannot start to plan now and go for it.
People don’t realize the potential they have within them, which is just waiting for an opportunity to flourish. This doesn’t mean that you should not attend business courses or go to seminars, or study for a degree, or follow other sound strategies to equip you before you begin.
The fact is; many people spend a lot of time learning and accumulating knowledge. This is absolutely useless to them unless they step out in faith and start. Best to commence slowly and learn as you go, listening to whatever advice is available and possibly making some small mistakes along the way.
When you look back you will realize just how far you have come and this will give you encouragement and the confidence to carry on and achieve great things.
