Dumb money advice that poor people give is what hinders people from achieving greater heights in life. It’s pretty noticeable how poor people give advice to people who are just as broke as they are, and unfortunately, some heed attention and follow these pieces of advice!
Sorry to burst your bubble, but you have to know that a bit of advice isn’t always valuable. You have to pick only the gold ones. And to lessen the noise inside your head of whom to listen to, avoid taking advice from people that are less successful than you.
Be critical of the voices around, and don’t just tread on the heels of other people’s guidance in disguise. Here are the pieces of advice that poor people often share:
Investing is extremely risky
Poor people think that investing is no different from gambling because the high risk is necessary to profit. However, this advice is a myth! Real entrepreneurs don’t place their bets on high risks investments, but they do everything in their power to lower risks.
And how do these entrepreneurs minimize risks? Simple— education, resources, and know-how. Without these three key foundations of investing, you’re not an entrepreneur nor an investor but a gambler.
Anyone in the world can invest, and the variety of opportunities available isn’t just accessible to rich people. So, if you think that investing is just for the privileged, you’re absolutely wrong! Investing is for those who know how to manage their resources. It’s for those who are aware of what they are doing.
Cling to your job
Let us shatter the illusions that this generation was taught to believe in: You’ll never be rich by merely landing a successful job.
If you are employed, and you’re still barely making ends meet, you might want to take a glimpse at your options. Don’t believe poor people when they say you need a new job that will give your better benefits or that you should stop spending all the money you earn on useless crap.
They just tell you such advice because most successful people they say they saw or know grew up working in offices. But if you open your eyes, you’ll realize that employees never get rich. The owner and shareholders just take advantage of their skills and pay them the bare minimum.
If you aspire to be rich, better start a business and don’t hold on to your low-paying job.
Stop trying to get into the industry
Perhaps, you have, or you know, someone who wants to try entering a particular industry, but someone just persuaded out that thought by saying, “I know someone who has a friend whose friend tried to do the very thing you want to do. They failed, so don’t waste your time trying!”
Or something like, “You will never thrive in the industry unless you know someone from the inside. Otherwise, you won’t make it on your own.”
Guess they didn’t tell you this advice to harm you, and maybe, they just want to save you from embarrassment and failure but following this won’t do you any good.
Nepotism is surely alive and widespread in some countries up to these days. However, the world is changing at an accelerated rate, and this practice is getting stamped dramatically.
Whatever it is that you want to do, do it! The barriers to entry in every industry are getting lower as time passes by. Your real enemy isn’t nepotism but the high competition in the industry you want to penetrate.
People who say that “you need a favor from someone influential and powerful to get into the room” are actually unworthy to be in the room. And why enter a small room when you can build an entire building just so you’ll have everything you need?
It’s better to rent than own
Some say that renting allows people to have mobility, but most people who share the same sentiment live in the same apartment for decades. Set your thoughts straight. If you’re going to stay in the same place for over a decade, you’re better off taking a mortgage instead of renting.
A five-year timeframe is enough for the value of a property to appreciate. So, instead of letting the landlord suck you dry, better build equity in the home. By chance, you suddenly want to leave for another place, you can just simply put the property at a sale in the current market condition and make a profit.
For rich people, spending is always about an asset and liability.
Money is necessary to make money
To be honest, this advice is just made to justify the poor’s lack of money. But if you would take a little closer to each of our lives, you would realize that we all have the means to make money. It’s just that we don’t know how to utilize our resources to increase the value of our time.
Whenever poor people have additional income, they tend to temporarily treat themselves to break free from a life of suffering. However, they didn’t realize that they were just digging deeper graves for themselves by doing so.
Instead of feeling helpless because you don’t have money to serve as capital to earn more, you need to master new skills and drastically increase the value you can offer.
You don’t need money. You need skills.
Always follow your passion
This sounds noble, but it’s a piece of horrible advice! Following your passion won’t put food on the table and won’t pay your pending bills! Follow the money and mix a bit of passion into it.
Don’t be misguided by this advice to the extent that you’ll waste years of your life on a venture that doesn’t guarantee your future safety. It’s a pretty terrible deal. You can do something for money and pursue your passion on the side, which will be a win-win situation for you.
Save it to buy that little something you love
Don’t be the type of person who has a $2500 purse but doesn’t carry $2500 in it! Do you think spending your hard-earned money on trivial material things makes sense?
Money loses value over time because of inflation. So, if you would just save it for the sake of saving, it will become worthless sooner or later. Rather than putting your money in your bank account or in the cute little piggy bank in your home, invest it. There are a lot of trading apps these days that automatically place savings into safe investments.
While the rich are making bigger money out of their savings, the poor have no idea where they are heading. The crypto industry is steadily growing, and if you’re spending your savings on all the luxuries life has to offer, you’ll be left behind soon.
We are not telling you to gamble your saving, though. You could go for safe investment vehicles that could help your savings grow steadily over time.
Slow and steady wins the race
What is the main purpose of a race? To see who’ll get into the finish line the fastest. Obviously, this is nothing but a piece of advice coated with noble terms. There’s no truth to this.
The reason why people get into a race is to see they perform against the competition. The fabled story where the turtle beats the rabbit doesn’t happen in real life. In reality, the rabbit always beat the turtle in terms of speed every single time.
To win the game of life, it is necessary to be agile, driven and capacitated to crush every obstacle that comes along the way. It’s not the slow and steady that wins the race. It’s fast and resolved!
