Millionaire Myths That Could Hinder Your Investing

When we think millionaire, we think private jets, luxurious houses and fancy cars. However, I dare say you are still looking at a very limited sample size.

Who wants to be a millionaire? More like who doesn’t! While we might all say we want to be financially free, there is no gainsaying the fact that being wealthy is at the core of all our financial goals and investment plans.

While it is amazing to aspire to a higher level of wealth, carrying on the wrong mind-set will not only limit you but it can spell trouble for you. The following Millionaire myths are very commonly held and can derail any investor from the real path to financial freedom.

Millionaires Take Big Risks

This is a very direct example of a millionaire myth that will give you a one-way ticket to disaster-ville. There is a big ideology that for you to be a big time millionaire, you must have invested in a highly speculative asset or grown a highly technologically-advanced start-up that was ahead of its time.

People think Bitcoins, Forex trading and as many investment methods that are a lot more unpredictable will propel them to their wealth goals; many of them have been dead wrong and had to pay for it.

The thing is a lot of people see the flashy investments but not the hedges that were taken against them. They see the speculative investments but not the treasury-backed investments.

While you indeed have to take on a measure of risk, there should be a balance in your investment portfolio that shields you from all the ways things could go wrong. It is really a matter of understanding the dynamics of risk and reward. Putting all your money in a speculative investment is a sure recipe for failure.

Millionaires Have High-Paying Jobs

There is also a notion that millionaires have jobs that pay in millions. They go to the biggest schools in the world and have the best degrees in their stash.

While there are people who made their millions like this, a look at the biggest millionaires and billionaires in Africa will tell you that a majority of them did not follow this script.

Rather, a lot of these people met problems with solutions and earned wealth from it. We all have various resources at our disposal. It is not about how much of these resources we have but how we apply them.

Millionaires Inherited Their Money

Just as there are elements of truth within every myth, there is indeed truth to the fact that some people met wealth from the first day they set their feet on earth’s soil.

However, just as the last myth, it doesn’t represent a majority. In other words, if you are cancelling out yourself from the journey to wealth because you believe a level of it has to be handed to you, then you are already on the wrong path.

Millionaires Are Flamboyant

When we think millionaire, we think private jets, luxurious houses and fancy cars. However, I dare say you are still looking at a very limited sample size.

A majority of the millionaires in our world today are champions in plowing back their income into investments. They live simple lives and will ultimately only own flamboyant assets when they have a very sustainable means of maintaining the said lifestyle.

As such, if you are going into the wealth creation phase with the idea that your private jet is coming, you might end up eating your fruits long before they are ready for plucking.

Written by Lawretta Egba.