There are many widely-held financial beliefs and norms that are simply not true, and can block you from building wealth. When it comes to traditional advice about saving for retirement or building up a nest egg, many of us have been inundated with harmful habits and beliefs.
On this episode of Investing in Real Estate, Natali and I are sharing five myths about finances! We’ll talk about the best way to build a savings account, the truth about your 401k, and much more. If you’re ready to confront your financial beliefs, this episode is for you!
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- “You should save all of your excess money.” This is a huge financial myth that we urge you to challenge. Traditional savings accounts generally have very low interest rates. And thanks to inflation, you’re basically losing money if you’re squirreling it away in a savings account.
- “You should automate your savings contribution in order to build your account balance.” We aren’t saying this is a bad idea, but if it’s your primary means for building wealth, you’re not getting ahead of the game. It’s fine to put away some money each month, but that’s no way to build true, lasting wealth.
- “You should never touch your 401k, under any circumstance.” If you’ve been led to believe that the 401k is the ultimate retirement plan, you’ve been lied to. If you’ve been told you should under no circumstances touch your 401k, you’ve also been lied to. We urge you to challenge those beliefs, take a look at the numbers, and assess what can happen if you take a loan from you 401k to purchase a performing asset.
- “Mutual funds are the best way to invest.” A mutual fund is just a collection of stock, and it’s ultimately something you have no control over. In comparison with a cash flowing asset like a rental property, a mutual fund has far less to offer.
- “Paying high taxes is inevitable.” The tax code actually favors business owners and investors, so if you learn how to play the game correctly, you can mitigate your overall tax burden.
On this episode you’ll learn:
- How can you find the best savings account?
- Why is buying liabilities a bad move?
- What are the benefits of borrowing from your retirement account?
- Why is the safety net of a job a fallacy?
- And much more!
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EP270: If You’re Saving Money, You’re Losing Money
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Rich Dad Poor Dad by Robert Kiyosaki
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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