The 7 Biggest Mistakes that are Costing You & Your Future
If you’re like most Americans, you try to make smart financial decisions. Although you’re busy, you do the best you can to get good information to do the right thing so your financial future is secure. Despite that effort, chances are you, like many others, are heading deep up a creek without a paddle. And to make things worse, there’s an economic storm brewing that could make today’s mistake, tomorrow’s disaster. Here are the seven biggest mistakes that are costing you:
1) Thinking high risk = high return. Many people feel like they’ve lost so much in the market that they just need to “ride it out” because they’re “in it for the long haul” and that by taking on all this risk, eventually they’ll make it all back and have a great return. But this kind of thinking got you into exactly the situation that you’re in now – seeing your money not growing at all over the last decade while taking you on an emotional roller-coaster along the way. We touched on this here.
2) Trying to build wealth using Accumulation instead of Velocity. This builds off the last point. If all you know how to do is accumulate (another word for hoard) money, then your only answer to “How to build more wealth” is to take more risk. The wealthy employ a totally different strategy. They avoid “risky” situations, instead using velocity multipliers to make each dollar they have work much harder for them in lower risk situations. This velocity creates more income in more predictable ways which is far better than hoping your pot of money gets a lucky bounce in the markets. We’ve spoken on this here.
3) Not having access and control over your assets. Can you really claim to have stewardship over your money when you can’t get to it and are limited by others in what you can do with it? Most Americans have little to no liquidity. If an emergency or opportunity comes they are stuck because their wealth is either locked up in government controlled plans &/or in their home. When emergencies happen, there’s often no (or dramatically reduced) access. Those who have liquidity are able to take advantage and build great wealth when difficult economic times occur. Those without it suffer under those hard times. We covered this in more detail here.
4) Relying on the stock market. Most Americans believe that to “invest” means to put money in the stock (or bond) market, even though they know little or nothing about these markets. They’ve heard that this is the best place to put money and that over time they’ll make money here (even though in reality they haven’t seen this in a very long time). Historically, pockets of great stock market booms are few and far between and we saw a huge one during the 80’s and 90’s. What makes you think this is a good place to have money going forward? Does it make any sense to put most of your money somewhere where you have little understanding of how it will bring you an actual return? Here’s a post we did on the fact that your statements might tell you you’re making money every when you’re actually losing money.
5) Relying on others to make your financial decisions for you. No one but God loves you as much as you do. We’re trying to work towards this kind of love, but we’re not there, and neither is any other advisor or pundit. So why do you trust them with your financial decisions? They will never care as much about the results as you do. And actually, they’re not supposed to. God gave YOU your assets to steward. If you want to steward that money well, and make your hard work worth something tangible, shouldn’t you take some interest in managing your assets? We spoke about that here.
6) Focusing on material wealth or “the World” instead of focusing on what God is saying to you now. God has a plan for your life! And He will bring you through all troubles to ever increasing joy (not always happiness) and wisdom no matter what is going on around you. But you must focus on Him above all else. If you can do this, and be trusted with what He’s given you so far, He can and will give you more to steward for Him. Then everything you have is for His purposes, and not your folly. He is the key.
7) Not Preparing for the Coming Economic Storm. Do you think that because things have always been good (in your short lifetime), they will always stay that way? Or that what has worked in the past (again we’re only talking a few decades here), will continue to work in the future? There is a massive storm coming. Our government is printing money the same way Monopoly does. When other countries do this, they collapse. We’ve gotten away with it for a time because the entire world uses our dollar to transact their business. But they have repeatedly said and are starting to act in ways that show they are tired of this. It might be far worse than you can imagine. Are you ready for this?
We have two events coming up in Austin to introduce you to this brewing storm which the media is not covering. We’ll cover many of the specific warning signs as well as specific things that you can do to prosper when those around you are suffering. We are called to be a light to the world. Being the spiritual light of Christ is the most powerful thing you can do for your neighbors, but being able to provide food when most people are without is a powerful, tangible way to be Christ to your neighbors. Please CLICK HERE to sign up for more information about these FREE events.
Photo credit: Imapix