21 Nov Mythbusting: “You have to earn a lot of money to become wealthy”
It seems to make sense that the more you earn, the more enjoyable life should be and the easier it should be to accumulate faster wealth due to the capacity to leverage higher. However, it is a myth that earning a lot of money will make you wealthy.
In my professional career, I have been advising people and businesses for over 15 years. I have seen individuals with high-flying jobs earning hundreds of thousands of dollars a year who have no money or assets.
Many live from week to week. I have also advised and helped other clients who earn the average wage of $40,000 a year. These people manage to save for a deposit for a modest house, have a modest overseas holiday every 2 years and live a nice life. They are accumulating wealth.
How can this be? No matter how much money you make, if you don’t control your spending, you’ll never achieve financial security.
Numerous instances of extremely well-paid celebrities going broke prove that how much money you make is far less important than what you do with that money. Let’s take a look at Michael Jackson the pop star.
I know this is an extreme example to use, but it does highlight this myth. Apparently, he was on the verge of bankruptcy just before his death. That’s why he was forced to do worldwide tours leading up to his death. How can this be? It’s simple. He spends more than he makes. If this can happen to him, it can easily happen to anybody.
Success is down to you
Remember, money doesn’t discriminate. It doesn’t say you were born in that neighbourhood so you can’t get ahead, or because you went to that school or you came from poverty or an abused home you can’t get ahead in life financially.
Let’s look at all the people who have overcome obstacles to become financially successful. One person that springs to mind is our last Prime Minister.
John Key came from a single-parent family and lived in a state house. We all know what he’s done and what he’s worth and the fact that he is so very successful. I can’t imagine that he would ever use any of the excuses above.
No matter where you came from or what you did yesterday, today is a new day, and anything is possible. All you need is the opportunity to believe in yourself and the motivation to get started.