Ok responsible people. This week’s tip on becoming financially successful has to do with tackling some widely spread myths about personal finance. Some of these dirty lies are as old as time itself while some I’ve noticed have only been recently dug up out of someone’s __ . Whatever the case may be, not knowing the truth behind these myths can ultimately be the the quickest way to ensure you live check to check for the rest of your damn lives. So in part one of Financial Myth Busters, I’m going to list a couple myths followed by their respective truths that I’ve learned over the years. Below the posts you can feel free to add some of your own. This is a fair warning though…this may offend those who are unwilling to wake up!
Financial Myth Busters Part 1
* Buying a home is an investment. (Lie! its a liability.. read Rich Dad/Poor Dad)
* Your credit is the most important thing financially you have as an individual. (Crock! Cash is king…never forget that. Also if you maintain a policy of never owing anyone, your stress level will always be cut in half.)
* You have to go to school and get a degree to make more money. (Crock! The only reason you HAVE to go to school is to get student loan debt. Otherwise, a degree is a modest crutch in the corporate world at best. At the end of the day each person’s success is directly tied to his or her hustle and what they bring to the table. Its also each person’s job not to let it box you in by influencing you to work for someone else for the rest of your life. We are the most “powerful” nation do to our entreprenuerial spirit – and this is for a reason.)
Make no mistake, I fully support education and coach hundreds of people every year on how to go back to school and make it work within their current financial lives. What I AM against is how we get into deep debt to pay for it, the irresponsible promotion of “you will get a job (6figures at that) right out of school, nock out your student loans then on average make a million dollars more in your lifetime”. Various national studies have proved that the lifetime income statistic alone is wrong. But also, what if you don’t want to work for someone else for the rest of your life? Is there a required college course for entrepreneurs? Oh thats right…thats optional.
* Real friends let you borrow money. (Incorrect! A true friend will show you how to save your money and if they REALLY love you, they’ll also show you how to make your own!)
* Leasing a car is a bad thing and financing a car is a good thing. (False! Almost everybody in CA is technically leasing whether they know it or not…see my previous post titled “The Truth about Financing vs. Leasing”. But please understand that leasing is still a terrible option- just not much worse than financing. At the end of the day, please use cash!)
* You must make sure your hair is as least ethnic as possible if you want to succeed in corporate America and make money. (N*gga please…and yes I said n*gga cuz thats a n*gga mentality. Its time to get off the plantation. Can you tell me what you see HERE?)
* The best way to combat debt is to make more money. (SO Wrong! More money just means the more you spend. Without a strong savings discipline, you will forever be stuck in a debt hamster wheel.)
* The stock market is too complex for the average person to make money from (Crock! If they wanted people like you and I to make money then they would put personal finance classes in inner city high schools …or investing classes as general education courses in college. Think about this. If every one of us owned these companies…who would be forced to work in them for minimum wage? Either you can spend your rent money buying iPods and iMacs or you can buy stock in Apple and profit from the next dumbasses who overextend themselves in these stores)
* You have to spend money and look overly successful to BE successful. (Come on son! I wish all of you one day could see what I’ve seen in my corporate career. The wierd thing about me is I skip straight past the workers in my peer group and end up best friends with the CEOs presidents , CFOs etc. And its not somethign I chose to do..it just always happens…they find me. Basically, what i’m saying is the things I’ve seen behind the scenes and the things they’ve told me are a 180 degree spin from the things I was brought up to think. One of them most notably is that your work always speaks for itself. If you make a company money…you could look like a drunk chipmunk from barbados for all they care.)
* The movie “The Matrix” was a sci-fi action flick about a war between humans vs robots (crock! re-watch it and pay attention to Morpheus and Neo’s discussion about who are the “batteries” in society and who’s fueling someone elses livelihood. Or you can watch THIS )
Ok thats all from me for part one..curious to hear what you guys bring! Remember, you can also read the section speaking specifically to myths pertaining to credit.