Each of us has heard this proverb, which means that if we have no money at the moment and we are poor, we will always remain so. At the same time, if we are rich, we will always manage our money well and they will multiply. Surely the people who still believe in these words can give a lot of examples of how they do not do well with their personal finances and how their wealthy acquaintances everything gets easy. If we leave aside the fact that it is easier (to blame fate or anyone else for our failures), this phrase denies a basic human ability — to learn and adapt. If we didn't have it, we would have disappeared from the face of the earth many years ago.
To deny this proverb completely, let's look at the facts in the eye for a moment. Before the year 1989, there were no rich people in the classic sense of the word and all the people went from roughly the same level. Also, a survey conducted among millionaires in the United States shows that 67% of them are self-reliant and have not inherited their wealth. In billionaires, the rate is 62%. Before you start to disprove me that some people are "more equal" than others, consider how it helps you think that if you have no money right now, you will never have. Nothing, right? Then erase this proverb from your vocabulary and out of your mind once and for all.
If that were the case, all BAS employees would be millionaires, but that's far from the truth, isn't it? I often receive emails with the following content: "Hello, Alan, I have no economic education and therefore I do not manage my money well. Give me some advice. " I cannot say that my financial education has harmed me, but it has contributed to no more than 10% of my knowledge and skills in managing personal finances and investing. The remaining 90% are stubbornly reading and applying what they have learned.
In Bulgaria there is no statistics on the topic, but I am sure that a large part of the rich people in our country are with secondary education. Completing a university ensures a good job, but it has nothing to do with creating wealth. We become more wealthy not during the day as we work or build a business, but in our free time when deciding how we will manage our money and where we will invest them.
This is one of the beliefs that most amazes me in our country. Unlike the previous two, here the lyrical character is so confident in his own knowledge and skills that he will cope seamlessly with the management of a lot of money, as long as they come from somewhere. Life is a wise teacher and sometimes such people smile at their luck, and they get the desired money. The result is clear. In less than two years, more than 99% of Toto millionaires lose their money, and only memories, a home and a car that cannot sustain with their income remain from the big payout.
Why does it work like that? Because these people don't have the knowledge and skills to manage their money, whether they are a little or a lot. When they win the jackpot, they do the same as before – they spend everything to the penny. However, some of them are trying to create a business, but they also fail because they have no experience and are looking for easy (to become businessmen). If you think that big money comes with an indication of use, you're lying.
The risk of investing is associated with the possibility of losing money. Actually, even walking to the store might be risky. If we don't know how to think, a sales clerk can lie to us and lose money. There are thousands of ways to break up with your money and only one to win from them. This way is called investing. Yes, there is a risk of loss, but this is how the economy and finance work. The higher the risk, the greater the possible profit.
Do not trust people who tell you that you can put your money somewhere where there is no risk and you will get a high yield. Either they're cheaters, or they're naïve, but in both cases, they're not reliable sources of information. If we are talking about risk, one of the worst decisions is not to do anything with our money and they stand on a bank deposit. Thus, we are guaranteed to lose 3 leva every 100 from inflation and bank fees and commissions.
Am I rich or happy? Tough choice. The wealth has advantages (for purely financial reasons), but happiness may be more important. Can I have both? Do you have to be unhappy if you're rich? And are you happy if you don't have a dime in your pocket? The conclusion that I have reached is that you do not necessarily have a lot of money to feel good, but the lack of them lowers my happiness ratio, and my mind is constantly busy thinking about how to make money instead of enjoying life.
Life is too colourful and with different nuances to set limits and choose from only two possibilities that mutually exclude each other. I know a lot of people with great financial opportunities who are happy, traveling, helping others, being calm, and many low-income people who are constantly arguing about money and still someone else's fault.
This is one of my favorite limiting beliefs about money and it is related to the fact that they are created to spend and need to be spent as quickly as possible to bring us pleasures like eating, drinking, new phone, and fashionable clothes. After that, we must pray that they will never end. Rarely this happens. If we don't think about our future, it will come and it won't be very pleasant. Even if we are young and hardworking now, we do not know if we can work on 60, 65, or 70 years. To rely on someone else (like the state, for example, or our children) to take care of us is tantamount to rubbing the lottery tickets. If our luck goes down, we can always eat and drink the profits, right?
Is that true? From a good, honest and hardworking man, you will become a greedy miser if you have more money. In fact, the bigger financial opportunities only show our traits. I have some examples of my friends who got rich very quickly and the money showed their worst qualities. But that didn't happen all of a sudden. They were educated that you should get everything done and you don't have to do anything for them. These "ready" money is quickly spent and in the end there is nothing left. If we build stable habits to manage our funds, they will serve us for the rest of our lives, whether we have 1.000 or 100 million leva in our bank account.