026: Money Mythbusting
Listen Here and Now as We Do Some Money Mythbusting
We share the top 5 myths about money that entrepreneurs (and beyond) believe. Let’s do some money mythbusting.
Quotable of the Week
“A business that makes nothing but money is a poor business.” -Henry Ford
Yes, we’re talking about money but really just as a tool to make the change you wish to see in the world happen. Money is important but it’s not the most important for us activist entrepreneurs!
Highlights from the Money Mythbusting Episode
Myth #1: Artists/Activists starve.
- The reality: It’s not either/or. You can make great art and make great money. You can create change and wealth. Sure, you might not become a billionaire but maybe that’s not such a bad thing.
- Remember the quote from Henry Ford.
- We would also add that there is a ton of value in a life lived pursuing art and activism.
- Especially as artists and activists, we just need to flex our creative muscles just a little bit more to figure out how to make it work.
Myth #2: You have to gamble to build wealth.
- The reality: Rich people aren’t gambling with their money.
- Some very wealthy people use a strategy that’s advertising is heavily regulated but gets people away from the rollercoaster of Wall Street. We’re talking about people like Presidents FDR, JFK, and Clinton to business people Walt Disney, JC Penny, and the Rockefellers. Does it surprise you to hear they were NOT gambling on Wall Street with all their money?
Myth #3: Compound interest is for someone else (like Warren Buffett).
- The reality: No matter your income, you can make compound interest work for you.
- Whether you start with $10 or $10,000, uninterrupted compound growth on your savings can make a big difference over the time you have it saved.
- For example, saving $10 per week over 30 years at 5% compound interest would take $15,480 and turn it into $35,204. That’s more than doubling your money! In other words, your money grew by 227%.
- The problem though isn’t how. At least intuitively, you know how compound interest works. They problem comes in understanding why. Why is it a good idea to save that $10 per week?
- Each person’s why will be different here but let me tell you a story of Benjamin Franklin that’s the epitome of compound interest for activists.
Myth #4: I don’t have the money to ____ [fill in the blank].
- The reality: You have the money for what’s most important to you.
- In the coming weeks, we’ll dig in deeper to budgeting and retirement planning. We bring up this myth today to simply get your mind starting to evaluate what’s really important to you.
Myth #5: I’ve got a guy. Or I’m too poor to need a guy.
- The reality: You need a team.
- If you’re currently living within your means and interested in learning about a strategy that is based on a financial asset that has increased in value every year for more than 160 years, we’d love to talk and hear more about your financial goals and concerns.
- In fact, we offer a complementary financial analysis. To get started, visit businessactivistentrepreneur.com/firststep or text BAEFinancial to 44222.