I'm a self-made millionaire, and here are 5 things I've realized people don't know about money
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Most people don't know enough about money.
A recent Ph.D told me his story: "Daniel, I'm 30 and I've been going to school for 25 years total. I never learned about money until I had to pay my debt. With my combined college and credit card debts, I'm paying a little over $2,000 per month. I thought my college degree would get me out of the rat race. Sure, I have a $100,000 per year job, but how can I ever have financial freedom?"
Imagine that: A Ph.D cannot enjoy his money until he pays his debts off by age 35! Most of the time, we never really learn any practical tips about money from society. Our parents, teachers, and bosses have failed to teach us these basic precepts that we need to live a successful life. We end up getting stuck with our money, guessing our way through our financial debacles.
On television, the pundits show the stock markets. They float around unfamiliar terms that the majority of people would never bother understanding. Other times, we hear about retirement plans, which means nothing to the average millennial. Becoming rich seems to be an impossibility because there are no practical teachings in our educational systems.
What must we do is understand how our personal finances really work, but we cannot do it by evading the entire topic. Obviously, there's a deep need for educational reform in this area. If you're looking to learn more about personal finances, here are the five secrets most people don't know about money:
Sean Gallup / Staff / Getty Images1. Parents teach money values.
Most of our financial behaviors start with our parents. Several months ago, I was shopping for a laptop. My father's voice came into my head: "Son, don't get the warranty. It's a waste of money since you won't need it. They're just trying to up-sell you." Of course, I didn't get the warranty because I believed my dad's voice.
Almost every material possession that you buy tends to go through the "parent's approval" process. Most people do not purchase certain goods and services simply because they know their parents would never approve of it. However, this way of thinking can often become detrimental if it stops you from learning the truth about money.
Most of our parent's have taught us to "play it safe." They tell us to go to school and get a job. First-generation children have an extremely hard time with their parents because of this. I personally receive many letters from young adults who claim that their parents would throw a dysfunctional fit if they didn't receive their college degree. All of this results in a false obligation to please their parents.
Related: 5 Ways to Reach Millions of People
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2. College isn't the answer.
The average college student graduates at 22, but works to pay off college loan at nearly $300 per month for approximately 20 years. As they approach their debt-free days, usually in their 40's, their desires for the "good life" has become so strong that they usually squander the extra money they have by indulging on extra expenditures for themselves and their families.
By the time they reach their mid-40's, they fall into a mid-life crisis. At this point, they've realized that all they've worked for is money. Yes, while some people attend school to gain knowledge and credentials, some simply go because of the "love of money." Because of this, some of them fall into a nervous breakdown, which may either lead to constructive or destructive behaviors.
Either way, college isn't the answer to financial freedom. It usually leaves you poor. Most people end up learning irrelevant information and unusable skills. You're better off reading dozens of books, attending conferences, and hiring a life or business coach, which would cost you a fraction of the amount of school. Plus, you'll learn far more about money by owning your education.
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3. Get rid of the 'someday mentality.'
Many people have the "Someday Mentality." This is when they see a nice home and they say, "Someday, I'll be able to afford that home." With this mindset, you've separated yourself emotionally from owning that home, which means that you have assumed that your self-esteem is not there yet.
Instead, you should say, "That home is mine right now and I'll do whatever it takes to get it." This attitude reflects your belief that the house (or one like it) is yours for the taking. Once affirmed in your mind, all of your actions will lead you obtaining your desire, if wished upon strongly enough.
Moreover, many people wait for external circumstances to occur before they take action: tax checks, children's graduations, end of car payments, etc. This habit of waiting for "someday" limits you substantially and keeps you from the ultimate good that has your name written all over it. Assume that you have all things now and you'll have it sooner than you think!
Related: 7 Steps to Achieving Financial Independence
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