by Danetha Doe
“People say that money is not the key to happiness, but I always figured that if you have enough money, you can have a key made.” –Joan Rivers
Let’s face it: we all want to be millionaires. Now, whether or not you have admitted it to yourself is another story.
And before I turn anyone off with that last statement, this is why I know you want to be a millionaire:
- You have a big desire to help a lot of people.
- You have a big desire to create a positive change within your community.
- You have a big desire to end the suffering that many of our brothers and sisters are feeling.
- You have a big desire to realize your full potential.
- You have a big desire to experience all that life has to offer while you are here on this planet.
And while it possible to accomplish of these things with a modest bank account. Can we be honest with ourselves and admit that having some mega cash in the bank would make it a whole lot easier?
Yes? YES. Great. Moving on.
So, here’s the thing. If you care about helping others and realizing your fullest potential, you have to give attention to your financial health. The best way you can help others is by taking care of yourself. If you are stressing about bills, the people you are trying to serve will be negatively affected by your subconscious energy.
And every moment that you do not feel comfortable about your financial situation is taking a precious moment away from your creative energy. Creative energy that should be focused on your passion and using your gifts to their highest potential.
It is just like the safety announcement the flight attendant makes before the plane takes off: if the level of oxygen drops in the aircraft, you need to put your mask on first before helping someone else. Why? Because, if you do not help yourself first you cannot help someone else. And you both will suffer.
The same goes for your finances. Your financial health has to be your top priority before you attempt to help someone else. And the first way to help yourself financially is to get educated. Read books, articles, take courses and attend seminars to learn as much as you can about money.
Because unfortunately, the majority of the information we have been taught about money is not practical or is flat-out wrong.
Remember 2008? Yes, everything you were ever taught about money was a complete lie.
Well, not everything. But here are five key misleading messages we have been told.
Lie Number One: You can save your way to being rich.
The average interest rate for a savings account in the United States is less than 1 percent. That means for every $1,000 you put into your savings, you will earn a whopping $10 per year. Sure, with compound interest and consistently adding to your savings, your interest earnings will increase. But who wants to wait until they are 70 to take a two-week island vacation?
Lie Number Two: Your 401(k) is a retirement plan.
Your 401(k) is a plan that you have very little control over. Another company, with compromised interests, has put together a portfolio of companies and they use your money to invest in those companies. You are essentially loaning them money so that they can make A LOT of money. While you wait 40 years before you can cash in on a measly sum that will likely not cover your 20-plus years of retirement.
Lie Number Three: Retirement exists.
So, retirement is not a thing. After you are “done working,” you will still need a source of income to support you. The majority of retirement plans will not cover you for the 20-plus years you will need income support. This doesn’t mean that you will need to continue working 40-plus hours per week after your “retirement age,” but you will still need to be able to generate income while you are in your retirement years. This is why it is so important to build a career doing what what you love. Because you will want to continue doing it long after you hit your “retirement age.”
Lie Number Four: Debt is a bad thing.
Everyone has debt. Even rich people. The key with debt is to not let it consume your thoughts, and to use debt as a means to get further ahead. For example, using debt to attend educational conferences or to grow your business or develop a new skill is great. Because that will pay for itself and plus some, overtime. Using debt for material items, such as clothes or non-educational experiences, is not necessarily a wise choice.
Lie Number Five: You need money to make money.
The best time to make a lot of money is when you feel like you “don’t have money.” Why? Because you have nothing to lose. When you have nothing to lose, you can afford to take risks! And you have more time to find creative ways to achieve your goals.
So, what can you do today to start your path toward richdom? The best way to build and maintain wealth is to learn how to generate your own income. This could be from a full-time or part-time business. Until you learn how to make your own money, you will always be vulnerable to economic swings and other people’s self-interests.
Focus on building up your cash, even if you have to use debt to do it. And with this income, continue to invest in your own skills and education. Your goal should be to earn an additional $1,000 per month. That is an additional $12,000 per year — way more than any savings or retirement account.
Danetha Doe is a financial coach for ambitious women. Her six-week program, Financial Foundations, is the #1 accounting training program for entrepreneurs. As seen on Huffington Post Live with Suze Orman, Danetha was recognized as one of the top 40 under 40 accounting professionals by CPA Practice Advisor in 2015. You can learn more about Danetha and her services at www.danethadoe.com.