The 5 Worst Money Tips of ALL time

Have you ever heard of the word Sheeple?  Don’t feel so bad if you didn’t, I didn’t either.  Webster’s defines sheeple as: “people compared to sheep, in being docile, foolish, or easily led.”  Not the nicest thing in the world to be called, but I guess you could be called worse.  Leed’s University recently completed a study and their results concluded that it takes only 5% percent to influence a crowd’s direction and have the other 95% follow without even realizing what is going on.  Similarly to sheep, humans seem to fall under the same mass ignorance when lead down the wrong path.  You can’t blame yourself if you don’t know any better, because if you don’t know about something, it’s easy to follow people who “seem to know” what they’re doing, right?

I’m here today to give you a different perspective.

Here are the 5 worst money tips sheeple follow:

 

Sheeple Money Tip #1: “Put Your Money in a 401K or an RRSP(retirement account)”—This is a trap and requires your agreement and participation in order to perpetuate. It makes you become a passive spectator, trusting others to make decisions with your money. This was developed by lawmakers with guidance from Wall Street firms and support from the IRS and CRA to provide you with a tax benefit today if you were willing to surrender control of your money for your life time.

People who are totally uninterested in your well-being, with no obligation to help you, are making decisions for your money. They get their fees whether you win or lose.

Do you understand? You gave up control of your money until the age of retirement and if you take the money out before this period you are penalized 10%, or higher, and then have to pay your taxes. Bottom line is you give up control and when you do that you no longer are in control.

Sheeple Money Tip #2: “Buy a Home”—This ties your money up. It can’t be invested anywhere else and when the markets contract so does your money—you are locked in hoping and dreaming that it will reach the high value it once had.

Contrary to popular belief, a home is not an asset; it’s a liability. It’s much better to rent what you own and own what you rent.

Sheeple Money Tip #3: “Invest Early and with a little bit”—Most people are worried about investing before they even get their money right. Too often I come across young adults who are trying to save up enough to buy 1 stock or a fraction of a fraction of a real estate deal.  That isn’t going to get you where you want to go.  You will be old and most likely broke before you realize your mistake, and then it will be too late.  Focus on yourself and invest time and energy into yourself. Get your income right, get it maximized.  If you have $10,000 only, your first thought shouldn’t be about investing.

I’d recommend waiting until you have $100,000 saved before making your first investment, or become very proficient at raising capital. Until then, keep investing in yourself. Investing early gives the idea that $50 a month will eventually get you wealthy. No, it won’t. You’ll be 70 years old and broke.

Sheeple Money Tip #4: “Diversify”—Rich people put all their eggs in one basket and protect the basket. Don’t put a lot of different eggs in a number of different baskets. Rich people make 1 big deal. Wall street sells and becomes very wealthy on the idea of diversification. Warren Buffett does not.  Who would you rather listen to?

People don’t know what they are investing in when it comes to 401K, RRSPs, and most of the time, the stock market.

Accumulate cash so you can put it in one big deal. People keep gambling with little pieces and get torched. You have to reduce your risk by doing your homework, there are no short cuts to educating yourself to protect your cash.

Money Tip #5 offered to Sheeple: “Go to College/University”—There is over a trillion dollars in college debt and grads are earning little to no money to pay it back.  College is a scam designed to keep your money in a system that doesn’t reward you.  How many go $100,000 in debt for a degree they most likely won’t use, almost all of them?

Stop being lured by the old idea that a college degree is the only way to make it in life. I’m all for educating yourself, in fact I encourage it, but you don’t need to go to a 4-year institution and postpone your career to not make any money doing the thing you went to college for.

Sheeple will continue to fall for these money tips so long as these continue to be promoted in the media and by the government.

You’ve been warned.

What’s your favourite Sheeple Tip?

It’s time to Elevate,

Stephen Young

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