Myths entrepreneurs fall for - Issue 1

Selby Webb

Published by Selby Webb
Co-founder, Editor and Head of Marketing of SuccessField


2 years ago

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There are Myths, widely held and arouse false beliefs or ideas, which many fall for. This applies to the business as well. Which one have you fell for?


1. Buying my first home is my first asset

rock-island-123406_1280

False! According to what Robert Kiyosaki said on Oprah’s tv show:

Your house is not an asset, it’s a liability. – Robert Kiyosaki

When we analyse these wise words, we notice it only then, that it’s the truth. Buying a house to live in is a very secure way of thinking. However, paying off a mortgage is a liability. One can not calculate the exact amount of ROI (return on investment), because the value of a real estate depends on the economic situation of a country. This false belief is being supported by banks. After all, this is where they make a lot of money. But when reading a financial statement, most of us will notice it’s not an asset.


2. The more you work, the more money you’ll have

money-515058_1920

Reread the sentence and you’ll think it can’t be wrong. Let me prove you wrong. The more you work, the more money you’ll have isn’t right. We should replace the second of this sentence with “the more money you’ll earn”, since we’re speaking about pre-tax and gross income. Higher income puts you in a higher tax class, which means you pay more. In business, we always look at things in proportions. If the dividend of a stock is very high, you’ll make sure you buy as many as possible. So if your income is high and they take away a lot of it, why should you embrace that? I’m not saying you shouldn’t work hard because the government will take away your money anyway, I’m trying to say work smart, not just hard. Individual business owners benefit more than employees. So if you’re willing to work 16 hour shifts, better take a credit and start your own business. Another benefit is that company owners can decide how much of the profit they want to declare as their income. This way, they can influence their taxes while employees just get what they work for. I didn’t even mention the deduction of expenses yet.

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3. Money can solve any problem

If your problem is a serious health issue, we don’t even have to discuss this one anymore. If not, let me express myself.

There are only two kinds of money problems. One is too much money, the other is not enough money. – Robert Kiyosaki

People think that money can solve every problem, because they believe every problem they have leads back to their lack of money. The possession of precious metals and valuable assets won’t impact one’s life. Money is here to enable financial security and freedom. Never confuse it with a problem solver. The only one who can solve your problems is you, because most of the time, you are the person that created them.


 4. The shortcut to getting rich

If you take shortcuts, you get cut short. –Gary Busey

street-238458_1920

Do you want to get rich quick? Then work harder and smarter than any one else, leave the office as last and invest your money wisely. If you do this and consider how much time it took you to reach your goal, you’ll notice it’s the fastest way. Fast money means earning a lot of money within a short period. Earning that amount of cash means putting more effort into it. If you work 12 hours daily, you’ll buy your dream car faster than if you worked only 8 hours per day. People confuse this with the following schemes; “Get rich in 3 months”. Ask yourself this: “If there was a medicine that could cure aids, would people still die because of that disease?” So if there’s a fast and easy way to become rich, why aren’t most of the lazy people that you know rich?

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Myths entrepreneurs fall for - Issue 1

Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+

There are Myths, widely held and arouse false beliefs or ideas, which many fall for. This applies to the business as well. Which one have you fell for?


1. Buying my first home is my first asset

rock-island-123406_1280

False! According to what Robert Kiyosaki said on Oprah’s tv show:

Your house is not an asset, it’s a liability. – Robert Kiyosaki

When we analyse these wise words, we notice it only then, that it’s the truth. Buying a house to live in is a very secure way of thinking. However, paying off a mortgage is a liability. One can not calculate the exact amount of ROI (return on investment), because the value of a real estate depends on the economic situation of a country. This false belief is being supported by banks. After all, this is where they make a lot of money. But when reading a financial statement, most of us will notice it’s not an asset.


2. The more you work, the more money you’ll have

money-515058_1920

Reread the sentence and you’ll think it can’t be wrong. Let me prove you wrong. The more you work, the more money you’ll have isn’t right. We should replace the second of this sentence with “the more money you’ll earn”, since we’re speaking about pre-tax and gross income. Higher income puts you in a higher tax class, which means you pay more. In business, we always look at things in proportions. If the dividend of a stock is very high, you’ll make sure you buy as many as possible. So if your income is high and they take away a lot of it, why should you embrace that? I’m not saying you shouldn’t work hard because the government will take away your money anyway, I’m trying to say work smart, not just hard. Individual business owners benefit more than employees. So if you’re willing to work 16 hour shifts, better take a credit and start your own business. Another benefit is that company owners can decide how much of the profit they want to declare as their income. This way, they can influence their taxes while employees just get what they work for. I didn’t even mention the deduction of expenses yet.

You also may like  New year, new me?

3. Money can solve any problem

If your problem is a serious health issue, we don’t even have to discuss this one anymore. If not, let me express myself.

There are only two kinds of money problems. One is too much money, the other is not enough money. – Robert Kiyosaki

People think that money can solve every problem, because they believe every problem they have leads back to their lack of money. The possession of precious metals and valuable assets won’t impact one’s life. Money is here to enable financial security and freedom. Never confuse it with a problem solver. The only one who can solve your problems is you, because most of the time, you are the person that created them.


 4. The shortcut to getting rich

If you take shortcuts, you get cut short. –Gary Busey

street-238458_1920

Do you want to get rich quick? Then work harder and smarter than any one else, leave the office as last and invest your money wisely. If you do this and consider how much time it took you to reach your goal, you’ll notice it’s the fastest way. Fast money means earning a lot of money within a short period. Earning that amount of cash means putting more effort into it. If you work 12 hours daily, you’ll buy your dream car faster than if you worked only 8 hours per day. People confuse this with the following schemes; “Get rich in 3 months”. Ask yourself this: “If there was a medicine that could cure aids, would people still die because of that disease?” So if there’s a fast and easy way to become rich, why aren’t most of the lazy people that you know rich?

Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+