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 railroads, 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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