Home Success The 20 Biggest Lies About Becoming A Self-Made Tycoon

The 20 Biggest Lies About Becoming A Self-Made Tycoon

ShannonDecember 4, 2019
Most young people have no idea where to start with investing. Credit: Burst by Shopify

6. All You Need Is To Start Investing

It’s true that investing is one of the best ways to grow your wealth and become a millionaire. However, receiving this advice is incredibly vague. Most savings accounts only give back 1%. According to a poll by Gallup, many young Americans are still hesitant to trust putting their money in the stock market. Everyone in their 20s and 30s grew up during the recession, so it’s understandable why everyone hesitates to try. 

There is a lot to learn about investing wisely. Credit: Pexels

According to Nerd Wallet, the average annual return on a stock return  is 10%. Depending on how much you invest, and how wisely you invest it, this may not be enough to be a millionaire. One of the best options to eventually retire with a million dollars is if you max out your ROTH IRA contributions every year, starting in your 20s.

Some people imagine life as a millionaire sitting by the pool relaxing. Credit: Burst by Shopigy

5. Once You’re a Millionaire, You’ll Never Have to Work Again

Some people out there want to be a millionaire because they want enough money to relax and never work another day in their life. People who have this mindset feel this way because they hate their job. This mindset is exactly why so many athletes and lottery winners eventually lose all of their money. They are raised believing that work is this awful thing. So as soon as they get a windfall of money, it’s gone in the blink of an eye.

Millionaires do not relax very often. Credit: Burst by Shopify

Most people who become self-made millionaires accomplished this because they actually loved what they do, and it doesn’t feel like work. They are productive, hard-working people. Someone who was motivated enough to go from the bottom to the top are often trying to build up to the next best thing. So they would get bored if they stopped working. Many of the most successful people actually dread retirement, and they want to work until the day they died. 

Some people think that gaining wealth is a game, and that the wealthy have cheated. Credit: Pexels

4. You Have to Cheat

There are some people out there who are convinced that the only way to go from poor to rich is by being a bad person. They have been so beaten down by society that they think it’s actually impossible to make an honest living. The truth is that yes, you can be a decent person, do all of the right things, and still become a millionaire. It doesn’t have to be cut-throat. In fact, people who are completely terrible people often cannot get along with others. If no one wants to work with you, then you can’t succeed.

You don’t have to be sneaky to make a lot of money. Credit: Burst by Shopify

If you have this jaded mindset, try to remind yourself that people like Oprah Winfrey are genuinely sweet, good people. She succeeded by being amazing at talking to people about their lives, and connecting on a deeper level. Talent and hard work are what help people succeed. It’s true that some jerks somehow figure out a way to get ahead. But Karma has a way of getting back at them. 

Some people advocate holding on to cryptocurrency no matter how bad the market gets. Credit: Shutterstock

3. “HODL!”

For those of you who are familiar with cryptocurrency, you may have heard the term “HODL.” This is the misspelling of “Hold,” but it also stands for “Hold On For Dear Life.” This is a term spread around by Bitcoin enthusiasts who believe so strongly in the coin that they never want to let go. Bitcoin traders believe that someday, their holdings will make them a millionaire, if they just have the patience to hold on for a long time. Some people even use Warren Buffet as an example of an investor who holds valuable stock he truly believes in.

Educate yourself on when it is a good time to buy or sell your assets. Credit: Shutterstock

Just like the stock market, cryptocurrency has its highs and lows. And even Warren Buffet trades during these high and low periods. He is hoping that other people will “HODL” so that he can make his profits. This is laid out in the book called Trade Like Warren Buffet by James Altucher. Most people who succeed in the stock market know when it’s a good time to sell, and when it’s a great time to buy. This takes years of studying, and it’s not something that most people succeed at. But most of the time, the “HODL” mindset will not make you a millionaire. Think about all of those people who held on to their dot-com stocks, because they believed the Internet was the future. Yes, online companies were the future, just like how blockchain is eventually going to be apart of our everyday lives. However, companies like Amazon were the only ones providing a truly revolutionary service. So before you think about committing to a cryptocurrency long-term, ask yourself if it will still be around in 10 years.

Don’t fall for a pyramid scheme. Credit: Shutterstock

2. Sell This Product, and You Will Succeed

At some point in your life, you may have had someone try to convince you to join a multi-level marketing company. These are companies that require you to buy a product up-front in order to sell those items to your family and friends. During team meetings, you will be encouraged to work hard with the promise that one day, maybe you will become a millionaire. Many of the CEOs claim to be motivated to help others succeed. In reality, 99% of their salespeople lose money and never earn a dime.

There is no guarantee that selling a product will make you rich. Credit: Burst by Shopify

These MLM’s encouraged people to recruit others to sell because you earn a commission from their sales. This is actually a pyramid scheme. Don’t be fooled if a company is called a “multi-level marketing” company. In truth, they are actually pyramid schemes, but they just haven’t been legally found to be one in court (yet). If you think that you or a loved one might be a victim of a pyramid scheme, please read the FTC guidelines

Don’t trust when someone tries to convince you to invest in a particular asset. Credit: Pexels

1. Buy This Stock (Or Cryptocurrency) And You’ll Be Rich

No one can predict the future. So if someone tries to tell you that a certain stock or cryptocurrency is about to skyrocket, they are lying. Maybe it’s not intentional or malicious. They may truly be hopeful and excited, because they are invested, too. However, no one should be telling you how to invest your money unless you are paying them to be your financial advisor. 

Do your research before you choose to invest in the stock market. Credit: Pexels

The next time someone tries to convince you to buy a stock, ask yourself what this person’s motivation is. A popular YouTuber or public figure might promote a new cryptocurrency because they want the value to go up. Once the stock is worth more, they can sell it for a profit. This is illegal in the stock market, but cryptocurrency is so new, that many public figures are getting away with this scam. Always do your own research before trusting a someone’s investing advice.