One of the most exciting things people want to hear or read about is how they can attain freedom financially. There are several posts, videos, and podcasts online focused on how one can become financially free.
However, some of this information is not accurate. In this article, we are going to discuss 20 myths we found about financial freedom and how untrue they are.
Is Attaining Financial Freedom Possible?
What is financial freedom? It simply means living a life without financial stress. It is a point you reach whereby you can sustain the kind of lifestyle you want.
Someone who is financially free can make decisions quickly without getting worked up on the financial aspect. When you are not economically frustrated, in debt, or controlled by your finances, but rather the opposite, you are financially free.
Is it possible to attain financial freedom? Yes, it is. In fact, there are many people in the world living a financially free life. Not that they don’t spend money or make financial decisions, they just do it without worrying too much.
What Are the 20 Myths People Believe About Financial Freedom? And How Are They Untrue?
Everyone’s dream is to live stress-free and still be financially stable. People share many tips on financial freedom on social media platforms, seminars, websites, videos, and so on.
Let’s quickly look into 20 myths people believe about financial freedom and how untrue they are.
1# Invest in only your practice
Most people believe that to become financially free, they must invest only in their practice. They think since that’s what they understand, they need to put all their resources into it.
Some other people even go ahead to quote, “Jack of all trades, master of none.” That is untrue because there are several opportunities where you can invest and earn with less stress. Investing in your practice only is just like putting all your eggs in one basket.
2# Real estate is the best place to invest
Although real estate is an excellent place to invest, why do many investors feel insecure? That doesn’t mean you shouldn’t invest in real estate.
According to Dow Jones US Real Estate Index, there was a 70% drop in the return rate in real estate in about ten years. Therefore, the market is never stable; it either goes up or comes down.
3# Investing requires a lot of money
Many people believe that those big investors have a lot of money in their reach, and that’s why they can invest. That’s a big fat lie.
Anyone can invest with any amount. Most of these big investors often take financial risks that will later yield into something tangible.
4# Previous successful investments equal future investments
If you believe that previous successful investments determine a high rate of success in future ventures, that is untrue because the variables are not constant. They can change anytime.
5# Save half your monthly income to retire early
It is not how much you save that can financially stable. It is the risks you take and the ventures you put your money in. Don’t just focus on saving. Always look for ways to grow your money.
6# Avoiding unnecessary expenses is a path to financial freedom
Watching your spending is a great way to save money and cater for yourself. However, this doesn’t mean you will be financially free by just saving or cutting your expenses.
Spending money can help you meet new clients or prospective business partners who will fetch you long term deals.
7# No debts
Financial freedom has nothing to do with avoiding debts. However, leveraging borrowed money can lead to great financial deals.
8# You need innovative marketing strategies that nobody has done
It looks true, but it is not. It is more like gambling. You have no idea whether they work or not since no one has ever tried them.
Why not go for tried and tested marketing strategies that have worked for many people and still work, such as pay per click, SEO, social media marketing, and so on.
9# You cannot be too honest
Many people believe that you have to be dishonest to attain financial freedom. That is wrong because there are honest people who are financially stable today. Most times, being honest is the best way to handle your business.
10# Investing is gambling
Gambling entails taking risks without knowing the outcome. Your success lies on an “anything can happen” basis. However, investing means calculated risks.
You know the possible end from the beginning. You can foresee what will occur, although not precisely.
11# Buy low and sell high
Buying low and selling high is a common myth. If we all have the time frame on when to buy and sell, will we all be billionaires? The market isn’t a stable place. You may buy high and sell higher or buy high and sell low.
12# 401(k) is the best means to secure your future
401(k) is an excellent way to save for retirement, but it is not the best. Other methods can secure you financially after retirement, such as investing, starting a valuable and lucrative business, and so on.
13# Spend less
This is wrong in many ways. Spending less doesn’t guarantee financial freedom, but spending wisely is a better alternative. You can spend less and still not be financially free.
14# Buy experiences not things
Spending money to get some knowledge that will benefit you financially is an excellent choice.
However, buying things can also contribute to your financial success. For example, purchasing items that will make you look high profiled can earn you great deals.
15# Small risks are better than big risks
Simply said, low risks bring small profit, while huge risks bring higher returns. Although there is no 100% success rate, whether you are taking a little risk or significant risk. That’s why it is called a risk.
16# All debts are bad
It is not a good thing to be in debt, but taking loans to invest in a future deal isn’t bad at all.
17# Work more
Who says working more will help attain financial freedom? It is not about that. You can work more, but on something that doesn’t help you grow economically.
18# You don’t need insurance
People don’t like to spend on insurance because they feel it takes a lot of money. What you don’t know is that by spending on insurance, you are securing your future and preparing for the rainy days.
19# You can do it yourself
Avoid financial advisors who advise you in this tone, “You don’t need anyone to make you rich.”
You actually do; you need friends, business partners, customers, family support, connections, and so on to manage your business.
20# Focus on one business
Many people believe that focusing on one business will help attain financial freedom. Sorry to disappoint you, this is not valid. You can focus on more than one company and still make a profit. Many wealthy men and women today have multiple companies in different niches.
You can get the life you’ve always dreamed of. It takes lots of hard work and dedication. However, don’t believe these myths. Use the alternative tips here to stay ahead of the game.
Read Also: 5 Essential Skills For Reaching Financial Freedom
Author Bio: Sottin Ayopo is an experienced content developer and author of this post. He is known for ghostwriting, blog writing, and SEO. He is currently working with Cardinal Digital Marketing, a digital marketing agency that specializes in PPC Management.