There are many people, mentors, books, and courses you can learn from to become financially free. Today, we are going to talk about who you should not listen to, who you need to be careful of, and who to avoid. This is just as important as knowing who to listen to.
I know a lot of theoretical millionaires. They can talk to you all day long about gold, or the stock market, or real estate, or business, but they are broke, and they live paycheck to paycheck. If you asked them to invest in a great deal, they would have the money to do it, but they can tell you—theoretically—all the reasons it is or isn’t a good deal. Idiots!
Seriously, in Texas we have a saying about these kinds of people. “All hat, no cattle.” They talk a good game, but they ain’t got no game. I guarantee you, you know this guy. He is always bragging about the next deal he is about to do. He always knows someone who’s done this or that. He usually wears cool sunglasses and drives a flashy car. He was a hero back in high school. Fact is, the guy is a douche bag pretending to be something he’s not. Don’t listen to that guy. In fact, run from him.
The next guy is Uncle Leo. You know Uncle Leo. He spends a lot of time watching TV, or talking to his buddies, or reading Reddit or some other social media site full of hot air bags. Uncle Leo knows exactly what you should do with your money. He knows every conspiracy theory. He knows the end is coming and we should all store up our stuff and prepare to live in the mountains. He’s a great guy to hang around and have a beer with, but he is NOT a great guy to take financial advice from. Turns out, Uncle Leo is broke! Always has been, always will be.
Maybe the worst guy/gal to listen to is the one trying to sell you something. They present glossy folders and fancy plans. They talk A LOT about the magic of compound interest, or how great it will be if you can save your money tax-free, or invest in an offshore something, or what the price of oil or gold is about to do. This clown will sound very polished, knows how to present, overcome objections, and help you to spend your money on his deal or product. This guy is a true scum bag. Unlike Uncle Leo or the theoretical millionaire, this guy is intentionally ripping you off. The others are just ignorant. This one knows exactly what he/she is doing. Walk away. Better yet, run!
Financial advisors are the next worst group. This group speaks all the right language. They know about investing. They understand the ups and downs of the markets, and they usually have a strategy they adhere to for “disciplined investing.” They talk about things like diversification, and small caps, and international stocks, etc. They may have some really good ideas. The problem is… they want you to pay them for the exact thing you should be able to do yourself. The other problem is what they call diversification… isn’t. They usually want you to diversify your “portfolio” over a group of stocks, mutual funds, and or ETFs. I’m not saying this is a terrible idea, but that is only one part of diversification. They do not want you to put money in cash, or gold, or real estate, or business, or anything else that does not pay them a commission. They will drone on and on about how the stock market has out-performed everything else in the long run. Be careful with these guys. Here is a litmus test. Ask them to show you their portfolio—their money, how much they have, and where they have it. They won’t do it. And because they won’t show you theirs, you should not show them yours. Walk away.
Real estate agents are just like financial advisors or stock brokers. Their goal in life is to sell real estate. To make a commission. Their goal is NOT to make you rich. This doesn’t mean they cannot be helpful in making you rich, because they can be very helpful, but please understand that is not their primary motive. Their primary motive is to close a piece of property and make a commission. Once you understand this, it makes it much easier to work with them. You need to make sure they understand your goals and what you are looking for, not have them bring you everything THEY want you to look at—which is everything.
Keep Living Every Minute,