This is the time when you and those around you could be tempted to take a break. It reminds me of the great line from the movie Wall Street 2, where Gordon Gekko (Michael Douglas) says, “Money never sleeps.” This is not the time to relax no matter how well you did or didn’t do. Gordon Gekko was a fictional character. You are living in the real world. Here is what Gordon didn’ttell you about money that you have to know moving into next month.
You must understand that in addition to money not sleeping, money never gets tired and it doesn’t celebrate. Money demands attention
and will always move toward and be devoted to those who are most committed and respectful of it. While most people say they want more money and financial success, the reality is, most never achieve it. Why? The reason is simple. We screw up with money. Before I get into the 8 Money Mistakes, I want you to think about where you are now financially and where you want to go. I'll bet you, like me, have made a few of these mistakes.
- Settling, not striving. Comfort is the most dangerous element of finances. The middle class is built on comfort, settling and making ‘just’ enough. The wealthy never get enough wealth and never seek comfort. They seek freedom and abundance and always strive for more.
- Diversification. Wall Street has done a great job of selling the public on the idea of diversifying because it benefits them. As my friend Mark Cuban says, “diversification is for idiots.” If you want to create wealth you have to know when to shove all in. Find a vehicle and place your bet . Andrew Carnegie said, “the way to get rich is put all your eggs in one basket and then watch that basket.”
- Depending on one income flow. No matter how big the one flow is you should never depend on one flow of income. I knew an executive in 2008 who was earning $350,000 a year (she was in the 1%) and suddenly that income shut down. Create multiple streams of income that continue to drip into your wealth basket. This is not diversifying your wealth it is fortifying it.
- Comparing oneself to “The Joneses.” Seventy-six percent of working Americans are living paycheck to paycheck. Compare your finances to most of America and you appear to be doing well. Never compare your finances to those of another. Wealth is not in the eye of the beholder. You either have enough wealth or you don’t.
- Seduced by the hottest, newest, thing. Avoid investing in any companies that can be displaced by new technological developments. Did you have a Blackberry? Do you still have one? I look what people will always need and invest in things that won’t be wiped out when advancements happen.
- Naïve and too trusting. The single biggest mistake of my financial life was naïvely trusting a group of people because I liked them. I neglected to take the time to look for proof that they were actually as they presented. By the time I had figured out something was wrong, I was out millions of dollars. Disregard your feelings and look for solid evidence.
- Saving to save. You can go broke saving money. Money that just sits around will find another place to go. Money gets bored and wants to see action and it wants to be put to work. To create wealth you must move surplus money into investments that will create more income producing activities.
- Being a premature baller. On the other end of the saver is the spender, the one who is trying to impress others with their cars, clothes and watches. I didn’t buy my first luxury car until I had millions put away. When I finally made those purchases, it no longer mattered that they were poor investments. The very wealthy --real ballers may appear to be flaunting their money with extravagances but in reality they are not. They own that watch on their wrist, Visa doesn’t.
If you are serious about creating a plan to build wealth, I'm offering a special "Wealth Creation Kit"
that will teach you how to dominate your space, approach success with a specific mindset to reach goals. You have a responsibility to create wealth for your family, your business and in order to make your dreams a reality. I’d love to wish you luck on avoiding the mistakes of wealth creation
, but achieving this will take more than good luck. Mistakes will be made. Learn from them and move on to creating true freedom for yourself. If you are serious about creating a plan to build wealth, I’m going to make it easy for you. I'm offering those that get my weekly email a special price on my Wealth Creation Kit
. This program will teach you how to stay hungry, get wealth-focused and wealth-driven. You have a responsibility to create wealth for yourself and your family. Remember the 8 Money mistakes I just gave you? Bet you forgot them already. That's why you need to listen to my wealth creation
techniques everyday, so that you pay it the right amount of attention. I never met a wealthy person that didn't attribute their financial freedom to their commitment to learning.
It's your time. Let’s do this together.