Much of the way that Americans live is based on a certain way of life that is marketed to society. If you truly have a dream of living financially free and different than the majority, you will have to question the typical way of life. Society has this way of keeping us in the rat race. It’s time for you to think differently. It’s time to change the norm for your life. If you want to get ahead, avoid making these financial mistakes that many Americans make every single day.
That dream home
Buying your dream home is a huge trap that many Americans are told to do. People tend to stretch their limits, take on massive amounts of debt, and find themselves trapped— paying a bank the rest of their lives. They end up adding on two or three jobs to just pay the bills. Owning your home can be great, but the “nice idea” of it can wear off quickly. If you do want to own your home, you need to be wise about the decision. Make sure you are aware of all of the costs associated with owning a home BEFORE you dive in head first.
Others discover that they become financially stuck after purchasing a home— which affects other areas of their lives. Careers and relationships have the potential to suffer if the additional stress of debt weighs down on you. If you have more questions over the debate of owning a home, check out this article here.
Avoid All Debt
After what happened in 2008, many pushed getting out of debt, avoiding debt entirely, and postponing investing as “the thing to do.” Authors like Dave Ramsey became very popular; which is understandable. The truth though is this: The most successful and wealthy ‘1 Percenters’ are NOT the ones that carry NO debt, but they are the individuals who know how to leverage their money wisely. Often, you will see them take out millions or even billions, in loans. Grant Cardone has been known to say that, “Rich people use debt to leverage investments and grow cash flow. Poor people use debt to buy things that make the rich— richer.”
Going To College
Did you know that many of the most influential and successful people are those who dropped out of college? This includes individuals like Sean Combs, Bill Gates, Oprah, Larry Ellison, Mark Zuckerberg, and more. Many of these men and women are also deeply interested and investors in real estate. The top minds have been known to say that the educational system in America is one of the greatest scams of all. For myself, it was a struggle to determine which path to take. Ultimately, I wouldn’t change the way that I did things and how I learned. If you want to find out more about that— check out this blog.
Always save! Save! Save!
I don’t want you to get the wrong idea. Saving is important and critical at times. Everyone needs to have some money set aside for emergencies, but if you want to successfully make it to a comfortable retirement, you will need to do more than just save. Saving will not be what will keep you in the middle class or launch you to another level. You will need to learn to invest wisely.
401k
Like Grant Cardone, I don’t think it is wise to throw money into a 401k. There are much better ways to invest and gain returns on your money. “The 401k is where you kiss your money away for forty years hoping it grows up,” says Cardone. 401k’s are popular retirement traps that most people fall into because that is what is taught. So, what is the solution? You need to focus on earning. “You can’t save your way to millionaire status,” Cardone continues. If you believe in your ability to earn money, you will be able to save for your future— but in a different way than the typical . Why the standard advice is to save in long term retirement plans is pushed in society is because most people do not believe that they can earn the money needed to support their future. What I believe is that I can and you can. Set your expectations high and think big. This philosophy will set you up for a life that you look forward to waking up to every single day.
The popular retirement plans are, "traps that prevent people from ever having enough," Cardone writes on his website. "The 401(k) is merely where you kiss your money away for 40 years hoping it grows up."
Summary
It takes a lot of observation to know what is happening in the world. There are so many conflicting messages and things that various people say. It’s important that you begin to think for yourself. Don’t follow the masses; for it is not the masses that reach high levels of success