Isn’t it ironic that poor people advise on how to be rich? It’s a no-brainer that the result of the blind leading the blind would end in tears. This is why you shouldn’t take financial advice from broke people.
The worldview of poor people is reflected in their advice. According to research, the mindset of poor individuals differs in four ways, hyper-consumption, no value-added, no ownership, and never/always belief system.
Hyper-consumption: Hyper-consumption is a characteristic of poor people. They are on a fixed income. They never put their money into investments and rarely save it.
No Value Added: People with a poor mindset do not add value to the world. They will always look for ways to benefit themselves. They don’t stop considering what it’s like to be in someone else’s shoes.
No ownership: People with this perspective are hesitant to accept their mistakes. They are ready to point the finger at others to avoid potential consequences.
Never/always belief system: They are conditioned to think in terms of extremes due to this belief system. As a result, poor people always think of extreme negatives in every situation they find themselves in. Here are seven foolish pieces of advice poor people give.
Investing is extremely dangerous.
Gambling is risky, while investing is not. Entrepreneurs debunk the misconception that they are risk-takers by doing the entirety to minimize risk. Risk is reduced through education, resources, and know-how. You are not investing but gambling if you do not have any of the three. You may agree that investing is most effective for the wealthy, but that is untrue. Anyone can make a financial investment. You can put your money, time, and effort into it or any combination.
Investing is not only for the wealthy; it’s also for those who discover ways to manage their finances. Poor people often say, “Only invest in things you can touch,” but a better way to specify it is “Only invest in things you understand.”
Find a good task and maintain it.
If you have a task but are still poor, you should examine your alternatives, you either want new work or you want to quit wasting all of your money on frivolous purchases. They advise you to pursue a career as a doctor or legal professional because they grew up seeing successful people working in offices. The most significant myth preached at this age is that you may get rich if you get a good job. This is not true. Employees are never as wealthy as the owners and stockholders.
To make money, you’ll want money.
This is how the poor rationalize their lack of financial resources. Indeed, going from $0 to $100,000 is purely a matter of willpower. They don’t tell you that you don’t hold your money; you spend it to make your time more valuable. When terrible people have extra cash, they deal with themselves a break from their pain but often dig themselves more profound in the process. You don’t need money to make; instead, you’ll need skills and time.
Pursue your passion
Instead of following your passion, pursue the money and add some warmth on top. You’re better off doing some matters for cash and making your love on the side. Being misled to the point in which you waste years of your life that may ensure future protection and flexibility is a bad trade.
Slow and steady wins the race.
Any race intends to see who can attain the end line first. That way, you’re in a race against the clock to see how you stack up against the competitors. The rabbit always defeats the turtle, but because it is a work of fiction, the race in that fabled story does not occur. To succeed in life, one should be adaptable, determined, and capable of overcoming challenges. The race is gained with the aid of using folks who are quick and concentrated, no longer with the assistance of using folks who are gradual and consistent.
Becoming rich is a matter of success.
It is a question of a chance to be born into a wealthy family. Getting rich, on the other hand, is an entirely different story. In life, luck is essential, but so are timing, discipline, attention, intellect, and markets. Poorer people are stuck up in the luck factor. You’ll often find them playing the lottery or scratch tickets. If you’re poor and want to emerge rich, you have to make up for your luck.
Save it up to buy something you need
Don’t be the person who carries a purse worth $25,000 but doesn’t have $25,000 in it. Saving money seems an excellent idea until you realize that money is becoming increasingly useless. Invest it instead of saving it in your app or stuffing it under your pillow. Any trading application can be used to invest your money in a safe investment automatically.
The wealthy benefit from index funds, but the poor do not know what they are. Cryptocurrency is an industry gradually increasing, but the poor continue to ignore it. The only condition is that you do not gamble. Try not to predict the next 1000x stock or cryptocurrency. It’s a matter of gaining knowledge of what to do with your money to be content with your savings slowly expanding over time.