If you want to be the BOSS of your life and live on your terms, learning how to build wealth needs to be at the top of your priority list. Unfortunately, there are five common money beliefs that may be holding you back from success.
How do you know how much wealth you have? Your net worth.
Net worth is calculated by subtracting your liabilities from your assets. The remaining total is your net worth. In some instances someone with a high income, can have a low net worth if they have a lot of debt. The opposite holds true as well. Individuals may have a lower salary, but have a high net worth because they’ve invested in successful vehicles. That’s why income is only a part of the equation.
Women are lagging in the wealth game because of their lower incomes, but ALSO because many do not invest and grow their assets. On average, women tend to hold their cash in savings accounts. While I fully support having an ample amount of cash in savings, there comes a point when it is time to diversify and take the next step in your money journey.
If you want to be able to take 4-day weekend on a whim or escape to an exotic island for three weeks without getting permission or just live life on your own terms, then learning how to build wealth is the skill you need to develop.
Here are 5 common money beliefs that are holding you back from success.
You need a lot of money to invest. You can start with as little as $10! When you first start investing, I recommend keeping 10% of your savings in a liquid account that earns a decent interest rate. One of my favorites is Radius Bank’s high-yield savings account, which has a 1.30% APY.*
You need to know everything about investing. As women, we are the queens of research. Which actually makes us the better investor, because we are more informed (go figure!). But, analysis paralysis is holding us back. The longer you wait, the longer you are missing out on the magic of compound interest (where you earn money on money on money). Here’s the thing- you and I will never know everything there is to know about investing. It’s like having a kid or starting a business. You’ll learn as you go.
Investing is hard. Think of investing as like learning how to swim or trying a new workout. At first, the moves feel awkward and you’re scared you’ll make a fool of yourself. But, the longer you stick with it, the stronger you become and the easier it gets. With investing, the terms and concepts will seem foreign at first. But, you will get the hang of it. Promise!
You have to time the stock market right. No one ever times it right, all the time. Sure, some people get lucky. But, that’s all it is - good old fashioned luck. It’s more important to be consistent. Consistency always leads to gains over a long period of time.
Only stocks and bonds count as investing. Stocks and bonds are fabulous, but don’t discount your business and side hustle as an investment. As the greatest investor, Warren Buffet, says, “the best investment you can make is in yourself.” Investing in your skills and growing your blog, creates a foundation of recurring revenue. Just like dividend payouts from stocks. Continue to improve your skills and you will be on your way to financial independence in no time!
Now I want to hear from you! Are you holding on to any of these beliefs or do you have another belief about money that is holding you back? Let me know in the comments below!
*Annual Percentage Yield (APY) is accurate as of 4/1/18. Minimum amount to open account is $10.00. Rate tiers are as follows: 0.00% APY applies to balances of $0.01—$9.99, 0.05% APY applies to the entire balance on balances of $10.00—$2,499.99, and 1.30% APY applies to the entire balance on balances of $2,500 or more. Rates may change after account is opened. Fees may reduce earnings
This post was in partnership with Radius Bank.