Seven Truths About Money That No One Wants to Accept

Your road to financial freedom begins with accepting some truths about money and acting accordingly. This guide will unravel the misconceptions and take you through the crucial facts to always have at the back of your mind.

Money is serious business. This fact is never more apparent than watching the deductions from your checking account, calculating the price tag on the Zanzibar vacation you want so badly, or seeing your taxes get deducted from your paycheck. 

In fact, we often find ourselves in financial problems when the cash doesn’t feel real. That’s where you see someone unknowingly racking up thousands in debt or lottery winners depleting what seemed like an endless supply of money.  

You can get in trouble if you don’t recognize the truth. Fortunately, this guide will take you through the hard facts about money very few people are willing to acknowledge. 

Truths About Money You Should Know By Now

Here are some incredible facts about money to always have at the back of your mind:

1. Only One Percent (1%) Of Self-Made Dollar Millionaires Earn Their Wealth Before Turning 40

Out of all the millionaires who can attribute their wealth to their personal efforts, only 1% became wealthy before 40. So don’t waste your youth thinking that your life will end at 30 and trying to invest in unsafe ventures or overwork yourself to get rich fast. 

You don’t have to get lucky to bag the lottery or create a million-dollar company in your 20s. Instead, you should develop a long-term strategy that allows you to earn from what you like to do and retire soon.

Life isn’t a competition, so don’t ruin what you currently have by wanting to buy time in the future. 

2. Money Won’t Solve Your Money Problems

A common misconception is that you’ll magically meet your financial difficulties when you have money. This couldn’t be further from the truth.

Have you ever read or heard stories about lottery winners who gained millions overnight, but ended up losing more than they won? This situation isn’t only prevalent among lottery winners.

Countless such stories exist among successful athletes and movie stars who make millions of dollars and somehow wind up in debt and broke.

Such personalities may have achieved the big breaks, but failed to grasp the slight edge. While the winnings transformed their bank account balances, they didn’t change their philosophies.

The harsh truth is that most of our financial problems can’t be attributed to a lack of money. Instead, they’re mostly based on our mentality about money, how we spend resources, and whether we can actively secure our finances.

Contrary to what most people believe, your problems won’t magically vanish when you have money.

In fact, it can even amplify them. If you haven’t learned to handle the little cash, you’ll face even more struggles managing a lot of it.

3. Personal Development Habits Won’t Earn You Money

You’ve probably come across numerous YouTube videos like “millionaire habits to adopt and build wealth.” Such content usually has millions of views.

These videos have something in common: they teach you about personal development habits to help you boost discipline and build your health. But you won’t learn how to boost your earnings and create wealth.

So whether you get up at 4 am or 11 am, it won’t help if you don’t know the process of earning money. The routine you follow doesn’t matter, provided you have a great job or business opportunity that provides enough to save and invest.

4. The “Best” Way to Gain Wealth Is Through Passive Income

Numerous posts claim that passive money isn’t a reality. But such a ridiculous statement simply forces people to believe they must work their entire lives.

Passive income simply entails earning through a business or investment that doesn’t require much attention. Provided you don’t have to dedicate your time to it daily, you’ve got a passive income. Of course, you must work first to earn such income, but then it’ll be passive.

This is arguably the best way to gain wealth because you’ll be letting the money work for you. Instead of having money, you’ll have time, allowing you to earn and live the life you want without visiting the office every weekday.

According to a recent Business Insider report, 83% of self-made millionaires buy used cars, live in modest houses, buy cheap clothes, and mostly eat at home. They also avoid emotional and spontaneous purchases overwhelmingly.  

5. Hard Work Is the Least Important Thing

We’ve grown up knowing that the only way to get ahead is to put our heads down and work hard. However, this isn’t quite right because hard work alone won’t get you where you wish to be.

First, your hard work won’t matter if nobody recognizes your efforts. The only way to turn that effort into advancement and promotion is to make the right people notice it.

Also, working hard isn’t worth it if there are other smart and simple ways of accomplishing your objectives.

Working hard will not only exhaust you, but will also reduce your lifespan without benefiting you directly. There’s more to financial success than merely hard work. You must know where to invest your efforts and know how to do this well.

6. You’ll Never Have Money If It’s Your Hope for Independence 

Many think that more money makes one free, so they spend most of their time going after money and praying that a fatter bank account would give them more freedom. However, the reality is different.

While it’s true that wisely-spent money can lead to freedom, it cannot deliver contentment and satisfaction due to the possibility of losing it. Freedom begins in your mind, not in your bank account or wallet. The words of Henry Ford put clarity into this fact:

“If money is your hope for independence, you’ll never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability.”

A millionaire can lose all their money in the blink of an eye. However, no one can take away the skills you’ve gained as you made a million dollars or built a fortune.

Even if you end up with nothing in your bank account, you’ll quickly come up with multiple income streams because you know how you did it in the past.

7. “Free Time” is Useless If You Lack Enough Money.

Articles about people looking for free time rather than luxury can make you believe that the new generation of millionaires is only concerned about their happiness. Such posts inspire us to believe that material things are no longer important.

But you cannot have quality time if you don’t have money. Time can be more valuable than cash, but you must already have the money to experience this. If you haven’t worked hard enough to diversify your finances, that free time isn’t worth it.

So be careful with the things you do to achieve your goals. You can waste the most productive years looking for a life you cannot afford.

Final Thoughts

It’s common for people to hate thinking about money or feel uncomfortable with their bank accounts. But if you wish to do yourself a favor, do the contrary and fix your relationship with money.

Talk about it, care for your wallet by keeping it organized and clean, track your expenses and income, and check your bank account balance regularly. Finally, it would help if you got comfortable playing with it instead of letting it determine your choices or control your life.

You may not come from an affluent family and might not achieve millionaire status. But when you choose to feel comfortable with money, it’ll never influence your life negatively.

Money may not take care of all your problems, but it’s undeniably significant in your life. You’ll have a relatively easier life once you learn to be comfortable with it.