3 Reasons You'll Never Be RichMost people live their lives chasing a paycheck, bound to the idea that if they just work harder, or find a better-paying job, things will get better.

Year after year, they mark their financial goals down in a calendar, but somehow the year ends with them as far away from achieving financial freedom as they were when they started.

They toil away at a job they hate – or barely tolerate – sacrificing their health, time with family and friends, and the chance to do the things they enjoy…

All in the hope that 30 or 40 years down the road, they’ll be able to quit and live life the way it’s meant to be lived.

But let’s face it: living paycheck-to-paycheck is a terrible way to live.

Waking up in the middle of the night because you’re not sure if you’ll be able to pay the bills… that’s a life no one would choose if they stopped to think about it.

But not everyone has this problem.

An elite group of people already know the secret to getting rich…

And it has nothing to do with having more money, and everything to do with dispelling the three myths people have about money.

Myth 1: Go to college, and find a good job.

College is a great place to learn – but going there doesn’t mean you’ll get rich.

Here are the numbers:

  • 44% of college graduates are working at a job that doesn’t require a college degree.
  • Only 27% of grads have a job related to their major.
  • The unemployment rate for college grads is 6% (that’s nearly two and a half times as high as the unemployment rate for the general population).
  • It will take the average person 21 years to pay off their student loans

Too many people go to college assuming that’s the finish line… That they’ll graduate, find a good job, and live happily ever after.

But the job market is changing. Companies aren’t offering pensions.

The new normal says that most people will change jobs four times by the time they’re 32, and by 42, changing jobs ten times isn’t uncommon.

College is a great place to learn and to meet new people – but it’s just a tool, not a destination.

Myth 2: If you save enough money, you can get rich

We’ve been programmed from a young age to save money.

There are dozens of stories floating around about people who’ve managed to save hundreds of thousands of dollars by skimping wherever they can: clipping coupons, cutting back on their grocery bill, and DIY’ing everything else.

The irony is that these people are the exception – not the rule. In fact, when you look at the statistics, it’s clear that saving will not help you get rich.

In fact, Steve Roth, an investor and blogger, crunched the numbers and discovered that how much you save has little to do with building wealth.

Where Does Household Wealth Come From?

Saving can help you in many ways, but it won’t make you rich.

Myth 3: Just get a better paying job

It’s easy to assume that if you can just make more money – and keep making it – you’ll be rich. After all, it seems logical that the more money you have, the richer you are.

Unfortunately, here’s what really happens when you get more money…

You work hard and get a raise. Although most Americans say if they would put the money in savings, the reality is that this extra money is viewed as a license to spend more money.

Whether that takes the form of buying a new house, going on vacation, or upgrading to new appliances, this increased spending only makes it harder for the average person to get out of debt.

What’s even worse is that the pay raise you lusted over for so long has now put you in a higher tax bracket. So working harder has just pushed you further away from being financially independent.

Bonus Myth 4: More hours equals more money

When it comes to money, most people prefer to play it safe.

If they’re poor, or middle-class, they spend their time worrying about having enough money. If they’re rich, they worry about losing their money.

So both groups spend their time working as hard as they can, head to the grindstone. They come in early and leave late. They cut back on vacation, and take their work home with them most nights.

But nothing helps – they’re still just as bad off as before.

Instead of enjoying life in the here and now, and doing what is important to them, they’re burdened by fear for the majority of their lives.

It doesn’t have to be this way.

Stop and ask yourself this question: is this the best way to live your life?

If more money isn’t the answer, then having a job, trying to get a raise, saving money… these are all part-time solutions.

They won’t get you what you really want – a life where you are free to do what really matters most.

If you really want to be wealthy, you have to stop working for money, and start letting your money work for you…

And investing in real estate is one of the best ways to do that.

Here’s why:

Real estate is how many of the rich make their money

If you’re not a tech industry wunderkind, owner of a big box retailer, or a fashion mogul, real estate is the way to go.

As Mark Twain famously said:

Buy land, they’re not making it anymore

It’s the third-largest source of wealth among the super-rich, with over 163 billionaires having made their money from some form of real estate. Even those who made their money elsewhere still choose real estate as the best way to make their money work for them.

Whether it’s property club deals, private equity structures or buying a property outright, high-net worth people prefer to buy real estate.

Your house won’t make you rich… but someone else’s can

The vast majority of people think of their primary residence as an asset.

The truth is that unless it puts money in your bank account every month, it’s a liability.

A better choice would be to buy a house and let someone else pay the mortgage instead.

How is that possible?

Simple. Let’s say you find a decent house in a good neighborhood for $100,000, and you choose to put 20% down and get a mortgage of 5%…

If your monthly expenses (which include your mortgage, insurance, and an emergency fund) end up around $800, and the rent is $1,000, then you’d have a net profit of $200.

It might not sound like a fortune, but what you’ve basically done is gotten other people to buy a house for you. At the end of your mortgage, you’ll own a $100,000 property free and clear – and you’ll be bringing in around $800 ($1000 – emergency fees) every month.

Don’t be fooled into thinking this is a get-rich quick system, because it isn’t.

Finding a property with at least 50% cash flow, which is what I like to use so I don’t get taken by surprise (read: so I don’t have to take money out of my pocket to pay for unexpected expenses), doesn’t happen in one day.

In fact, you might have to comb through 100 houses before you find the right one.

But… you have the entire country to choose from, so it is definitely doable, especially if you’ll be having a reputable company manage the property.

You just have to know where to look and what to look for.

Now out of those 100 properties only 10 of them might look good, so you would put a bid on those. Out of those 10, only 3 of those offers might be accepted, whereupon you would choose the property that looks the most stable and will give you the best cash flow.

But once you decide on “the one,” you’d be well on your way to taking control of your money and building an asset base that works for you instead of the other way around.

Where do you want to be ten years from now?

Take a step back and imagine yourself ten years from now.

Don’t think about what you’re wearing, or how many wrinkles or pounds you’ve put on. Instead, imagine what you’d like to be doing with your life.

Are you spending time traveling the world? Or are you hanging around the house because you love to be with your family? Perhaps you’ve finally gotten the chance to invest in yourself – which is one of the investments with the biggest payoff.

Regardless of where you are or what you’re doing, things will only be better if you make the choice to plan for your future.

Don’t wait for life to happen. Start living it NOW.

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