There are certain beliefs that are so much age old that it has become part of our being for generations. The money myth is one such thing. The usual track of going to high school, finishing higher studies, opting for a high salaried job and then making loads of savings is to any household a very acceptable and sought after way of being rich.
What is most interesting to find is that the when you go through the stories of the richest people on earth most of them actually never had this stereotyped journey. This is because to them money was just not numbers.
Lots of money but you are still not rich
There are doctors and engineers and business analysts working throughout the year bringing home one of the best paychecks they deserve. There is a lot of contentment in respect to salary and the social positioning. But in real times the increasing salary may make your life prosperous but being rich is a different ball game. This is because the more salaries you are paid the more taxes you need to give to the government.
Doctors, engineers and lawyers are considered to be the highest paid individual skill based income today but they are the highest tax payers as well. The 1 percent of the world’s population who hold the largest amount of money in the world does not fall in this category. It is due to this reason it is believed that Taxes, Debt, Inflation, and Retirement stop salaried employees to become rich people.
Rather than saving money, investments in mutual funds, stocks, shares and even gold are the ways one gains an opportunity to be rich. This is not as simple as it sounds. Rather than understanding where one should make investments, it is important to learn when and how much to invest.
Investments and planning make you rich
It is because of this reason that smart entrepreneurs across the world go more on investment and hence end up paying lesser taxes. The investment in gold in this respect can be a much comprehensive way to understand. Gold is considered more valuable than money as a currency for centuries and still is an essential item of investment. If one is looking to diversify risk via derivatives and future contracts, then buying gold is great option to be rich. But the process in which gold is being handled across the world needs to be understood. Rather than production, it is the demand for gold that regulates the price of the metal. If the mine production of gold is around 2500 tonnes in the last few years, only 500 tonnes goes for investment and trading. The central banks and registered organizations hence influence the price of gold and also own a good share of gold for trading purposes.
The negation of rigid stereotyped concepts regarding money is one of the key reasons why rather than becoming rich most people look up to individuals who are rich. Understanding the net worth of the money you currently have and how it can be multiplied in a short time for a better return is what ensures the success for most rich people across the globe.
