It is nearly impossible to save your way to retirement . The numbers just don ’ t work . What you need to understand is that you don ’ t have an expense problem , you have an income problem . You just don ’ t make enough money .
Put the coupons down and read a book on how to make more money . That is why I started investing in real estate . I realized the system was flawed . I focused not on saving money but making more money . That is what is effective .
Number 2 : Thinking a job is there to build wealth .
The middle class think that a job is a way to build wealth . It is not . They think they are going to climb the corporate ladder to success . This success story is so rare , it is not even worth mentioning . Waiting for people to die , get old , retire , or get fired so you can move up is futile and ineffective .
Why do people think they can do this ? Because when someone does do it , they publicize it as the norm .
I used to look up to Jack Welch of GE . I wanted to be like him . The press promoted him and bragged about his $ 100 plus million paychecks . They did not let you know that he had 150,000 employees that were just barely surviving .
This is much like the casinos that when someone wins $ 1 million , they promote it all over the place not mentioning the other 10,000 people that were losing money at the exact same time , in the exact same casino .
Plus , imagine playing Monopoly and just circling the board and collecting your $ 200 paycheck every time you passed go . Would you ever win the game ? No . To win the game , you can ’ t just depend on a paycheck . You must buy incomeproducing assets such as rail roads , utilities , and real estate . It is the same in real life .
Number 3 :
Thinking high school and college teach you about building wealth .
The sad truth is neither high school nor college teach you anything about building wealth . They teach you how to get a job and nothing more . That is what they were designed to do .
You are responsible for your financial education . Jim Rohn put it this way . “ Formal education will make you a living , selfeducation will make you a fortune .”
Seventy percent of Americans never read a nonfiction book after high school or college . This is a huge mistake . They think they know everything , and they end up broke at 65 .
You must read , listen , and attend seminars and workshops if you are going to learn the rules of money and wealth .
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