Money Traps

For most of us, the best way to accumulate wealth & attain financial freedom is (believe it or not) by working hard, saving what we earn & investing wisely. Yes you can get rich working for "The Man." People think you need to start your own business, win the lottery or luck into some inheritance to become financially secure. Not only is that not true, you could end up the opposite of rich if any of those happen to you...as long as you can avoid the "money traps."

I've met quite a few business owners, and the majority work tirelessly & continuously on & in their businesses. One of my closest friends invested his life savings into a few investments, including his own retail store. Business started out OK, but as the economy turned, he had to work more & more. Last year he had to lay off his one employee & now works full time at his shop. He works more than ever for less than ever & has lost the ability to nurture other investments. Financially free people don't need to work for their businesses. Their businesses work for them.

People think winning the lottery or gaining an inheritance brings financial freedom. How often have you heard the sad but classic tale of the lottery winner who lost his fortune on bad investment or ill planned purchase? Fast fame often accompanies fast riches. Friends & relatives find you before you realize how much money you have. They may even sincerely believe they have the answer to riches aside from a somewhat small investment from you. I don't want to focus too much on this path to riches because it's the least likely. My goal with even mentioning these is to make sure you invest as little as possible here. Building wealth on a budget takes every dollar you can get your hands on.

With knowledge, support & discipline, the rest of us have a chance for financial freedom too. The problem with those of us who are fortunate to save a little, something comes along to take it away. People approach us all the time with financial needs or investment ideas; however, we tend to notice them most often when we have a little to invest. Sometimes our own wants & needs come up. We easily become the proverbial fool who is soon parted with his money. Those who go into debt for these wants & needs suffer worse. Is instant gratification worth paying double or more?

I compare this to a leaky bucket. We think if we save our money in a bucket, we'll eventually add up enough to retire or be financially free, but the math doesn't add up. How can you save enough to be rich if A. your budget doesn't allow you to save even a few thousand dollars per year, or B. Whenever you manage to save a little, an expense seems to suck it all away? Don't give up on me yet! I know the picture seems bleak, but as we continue, you'll learn that you can debunk the myth that you can't get rich working for someone else. In fact, you'll learn that it's the most surefire way to do it!