Today I want to let you know about the 4 lies politicians have taught you to stay trapped in the middle class. These lies may be surprising to you, like someone telling you planet Earth is flat, but don’t disregard this information without researching this more and coming to your own conclusions. Don’t be part of the masses who financially imprison themselves.
The 4 lies that keep the middle class trapped are as follows:
1. Investing in a 401K
People gleefully stuff their income into places where they don’t know where it goes and they can’t touch it for 30 years. Someone on Wall Street can mismanage or blow YOUR money. Things can go poof in the night by incompetent executives without ethics—check Enron. If you don’t want to be responsible for your retirement dollars, then the 401K is for you. I personally refuse to have someone else handle my retirement dollars. I also want to get leverage with my retirement dollars and immediately multiply my retirement dollars. You don’t get any leverage with traditional 401K investing and you don’t have control. Multi-family real estate is much safer and gives a better return.
2. Building Credit with Credit Cards
There are over 1 billion Visa, Mastercard, and Amex cards in circulation just in the US. Many people let credit card companies use them, rather than using the credit card companies as a convenient accounting device. It is unnecessary for anyone to ever find themselves the victim of their credit cards, but people are paying late fees, penalties, and high-interest rates because they have no discipline. The problem is most Americans don’t make enough income so they can’t pay off their expenditures. Spending $4 on a cup of coffee is a problem if you make $12 an hour—but that’s not a savings problem, it’s an income problem. You do want some debt in your life because not all debt is bad—but nobody needs credit card debt.
3. Going to College
I wish I would have gone to Harvard—for the connections, not for the education. I also wish I would have paid more attention when I was going to college. Unfortunately for me—and so many others—I had no direction on why I was there and had no purpose for what I was learning, so I left my university with a piece of paper, debt and no idea about my future and very few skills. You don’t need college to get rich. The problem is not in education, but the approach. When you approach an education you must think about skills, not just information or knowledge. Only 27 percent of college graduates are even working in the field they studied. One of the reasons you should study is to gain skills. The only things you can use every day to bring more value to the marketplace are your skills. And everyone must learn sales, but no major university teaches it.
4. Buying a House
A home is not an investment because it doesn’t pay you every month. In fact, you have to pay it every month. That’s why a house is not an asset, it’s a liability. Nothing is a good deal if you have to feed it constantly. How can a house be an investment? It produces no money. Investments produce money. People have a dream of getting a doormat that says “The Johnson’s” and owning a home for 30 years. A house is a liability. When you buy a home you pay for the following: Property taxes, Property insurance, Maintenance, and HOA Fees. The expenses are funded by the owner, not the income. Over the past 50 years, a home has returned 1% when adjusting for the rate of inflation. Get involved in multi-family real estate if you want to own a real asset.
There you have it—the four steps ready to keep you securely trapped in the middle class: 401Ks, credit cards, college, and houses. Which of these steps have you taken? But remember, it’s never too late to back out of any of these and change your path to becoming wealthy. Escape the middle class. Don’t be trapped by the ‘dreams’ politicians sell you.
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