5 Misconceptions of Becoming a Millionaire with Patrick Bet-David

5 Misconceptions of Becoming a Millionaire with Patrick Bet-David

There are a lot of misconceptions and myths out there that come to mind when a person thinks of a millionaire. These common misconceptions could be holding you back from getting rich.

So in today’s read, I’m going to share with you some insights about entrepreneurship and some common misconceptions about being a millionaire. For all those who are looking to making money in business, entering entrepreneurship and breaking away from job and employment-ality; this read would definitely give your life a boost.

Whenever I had a conversation with my parents about their thoughts on “money”, their reply was usual – “look, money is not a thing that grows over trees; so, works hard for it”. Being part of a mediocre family, whenever I asked for the things that I like, and their reply was always typical like “we don’t have surplus money to buy such things”.

So we didn’t have much money and there was nothing like a house; there was always an apartment and in my life, I was in such a spot where it’s not that easy to go, get the money out there. At such a place you always have difficulties in your mind when you think about getting money.

“To be a millionaire” was always a dream for me even while living in a place like Glendale; where you weren’t surrounded by millionaires. I always used to think about one thing and that is – what would happen if I got a million bucks and what would I do if you make a million dollars.

Even at the time when I was in the Marine Corps army, I used to be a spender in the military – anything came in and everything was gone. The first car I bought in the military was a 1990’s Mitsubishi Eclipse Turbo from a company called F-Mack and at that time my interest rate on this thing was 33%. It was just because I was 18 years old and when you don’t know much about the gamesmanship of money, they take advantage of your lack of education about money.

The Difference In Approach To Spending Money – 

In my experience and while being around millionaires; there’s a difference between the approach of spending money among those coming-from-money and the one’s starting-from-scratch. Somebody who doesn’t have it appreciates a little bit more when they do get it and somebody who came from a well-off type didn’t think much about…

1. Most Millionaires Succeed In Wealth 

Well, this is not the case, 83% of millionaires are self-made according to Forbes magazine. This “self-made” doesn’t mean no one helped them but it is actually that mom and dad didn’t pass that money over to them and they have made their millions with themselves. So it’s a totally wrong misconception.

2. Millionaires Don’t Pay Taxes

A very common misconception about millionaires is that they don’t pay taxes. Like Mr. Trump – our president hasn’t handed over his income taxes yet and such cases make people believe and say that millionaires don’t pay taxes.

Actually when people say such things they don’t look at the sacrifices being made to run businesses. I must say that any tax plan that a country offers should be taken as a compensation structure. So if I work for a company which is a commission based company everyone would have their compensation plan and every sales company has it in their structures. So in this perspective, America’s comp plan structure is set up to benefit entrepreneurs.

American’s comp plan tells us “hey man if you’re willing to risk your entire savings to go start your own business. By business, I mean working 80 hours a week for five to ten years and you won’t be going to be spending much of your time with family and there would be no time to watch your favorite TV shows. So if you’re willing to take that kind of a risk, I would be giving you the best compensation structure and that would be to lower your taxes”.

So if there wouldn’t be any incentive for taking that kind of a risk who would be willing to go to sacrifice all their income and savings for nothing. Nobody – you have to offer incentives to let other people start businesses.

3. Chances Of Reaching Millionaire Status 

There is a lot of confusion about the chances of touching millionaire status among business people entrepreneurs or employees or salespeople? Well, in my experience entrepreneurs do have an edge. They have got benefits and opportunities in reaching this status. But nowadays you can’t say with much surety because people like Steve Ballmer who has never been an entrepreneur.

He’s used to be a CEO for Microsoft from 2000 to 2014 and he ended up in today’s world like thirty-forty billion dollars. So he didn’t start Microsoft but Bill did. Nevertheless, he still manages to reach that billionaire status. So we can say that there are many ways of becoming a millionaire but the likelihood is benefiting entrepreneurs.

4. Millionaires Are Struggling To Maintain Their Status Of Wealth

This concept is right because all those 2.7 million millionaires in America these days are struggling to maintain their wealth status because of traveling around in private jets and driving exotic fancy cars.

Well for me, I started traveling first-class way after I already saved millions of bucks. But yes when you go first class and buy Ford Focus you might drop in your savings and it’s a challenge to maintain your status.

However, at the same time, the benefit of us having a private jet is way more than saving a few bucks in wasting time. We don’t fly on private jets to try to say “hey look we are rich”- that’s not the case. So there is nothing wrong in flying on a private jet when it’s worth it.   

5. Rich People Are Greedy

This is another big misconception that rich people are greedy. I know many rich people who gave money to needy and they just say please don’t tell it to anybody. So they don’t want to advertise it. Therefore, I must say this is a very big misconception and it is absolutely wrong.

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For those who still believe that money is not everything; here is my piece of advice to them. There are many parents out there who mistakenly tell their kids that who cares about the job – life is not all about money – life is about family and that’s what it is. When that kid grows up without going to get his or her money, they end up settling for one another.

So is there anything excited about settling for anything in your life which is given to you once when you can get what you deserve or what you want?