Whether you own a small business or plan on investing in order to build wealth, there is no quick or immediate path. It will take planning and time; however, you may hold some common misconceptions about wealth creation that might be preventing you from reaching your goals. From real estate investments to building wealth through entrepreneurship, learning the truth behind these misconceptions may help you break through to the true path of wealth and inspire you to discover new and exciting ways to build your fortune.
1. Wealth Creation Is Stunted by Those Who Are Already Wealthy
While you may be striving to create wealth through whatever means suits you best, you may not be working toward your full potential because you believe that the country’s wealth is already controlled by those who already hold the biggest piece of the pie. However, thanks to a great deal of wealth being generated by new technology, the face of wealth creation is changing.
Less than just a few generations ago, people were wealthy for two reasons: they were either born into wealth or generated it with the acquisition of land and developed real estate. While real estate investing is still a viable means of investment, Land is limited and can only change hands or be developed. This did limit one’s ability to build wealth to some degree, but since what creates wealth today is changeable, (such as cell phone technology,) the potential for wealth creation is almost limitless.
2. You Do Not Have Any Seed Money Available
This is one of the most common misconceptions people have when they want to build wealth and it makes them complacent very quickly. However, if you want to truly build wealth, you need to organize your financial priorities. Investment opportunities abound, and many only require a few hundred or a few thousand dollars to get you started. First, though, you must understand that money is not the issue: spending is.
It is a matter of course that seed money is necessary for any type of wealth creation, but what you may not realize is that you may have it within your own finances if you re-prioritize your spending. Cut back on take-out meals and expensive coffee house drinks and take steps to lower your monthly living expenses by taking advantage of discounts and making an effort to avoid wasting electricity and water. Curb credit card use, as what you pay in interest and monthly payments can instead be used to build your seed money.
3. The Risk of Investing Is Too Great
One of the most common reasons people fail to grow wealth is because they fear that one bad investment might cause them to lose the money they have already built up. However, while investing in any kind of project that might help you build wealth is never a sure thing, it is important to remember that investing requires commitment and planning. To minimize risk, work with an investment specialist and avoid opportunities that have not brought returns to investors in the past.
4. Wealth Building Is Mostly Luck
Perhaps you have not gotten serious about wealth building because you believe it is all a game of chance. Some people are wealthy because they were in the right place at the right time, and others were fortunate enough to hit on an investment that earned them a huge return. While this might be true for a few people, most wealthy individuals became so due to wise investing and through controlling their finances.
If you are still not convinced of this point, consider the story of Steve Wynn. He started out working in his father’s bingo parlors and worked at expanding the business until he could raise the seed money to begin investing in the renovation of hotels and casinos. Today, he is the CEO of a highly successful company, Wynn Resorts Limited, and as of 2015, Forbes estimated his personal wealth at nearly $2.5 billion dollars. Wynn built his wealth by turning his father’s failing business into something that eventually allowed him to invest in an opportunity that resulted not from luck, but from strategy.
5. Wealth Creation Will Take Over Your Life
If you believe that wealth creation will cause you to lose other important things in your life, you may be hesitant to begin. However, it is important to remember that there are paths to building up investment capital that will not require all of your time. To find them, consider which opportunities most interest you. Would you rather pursue real estate investments or seek out opportunities online, such as affiliate programs that allow you to build profit through advertising? Personalizing your wealth creation strategy may help you foster personal happiness as well as profit.
Believing these five common misconceptions about wealth creation may be holding you back from financial success, so it is important that you take a closer look at what you are capable of and throw them aside if you expect to succeed. This is especially important if you have become complacent in your beliefs and your wealth creation attempts have stalled. The first step you may want to take is to change the way you think about wealth creation and then implement a committed and well-planned strategy that will help you reach your ultimate goal.