After 5 Years Studying Rich People I Learned 5 Myths About Money

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I spent five years studying the daily activities of wealthy individuals. I learned so many things that I’ve spent the better part of seven years sharing that information to help those who were struggling financially pull themselves out of the abyss that is poverty. One of the many things I learned is that self-made millionaires have a very different understanding about money than everyone else. I’d like to share some of the myth’s about money I uncovered in my research.

Myth #1 Are Your Investing or Are You Gambling?

Thirty-six percent of the self-made millionaires in my study were what I like to call Home Depot Investors. These individuals made most of their wealth by investing in stocks in individual companies. Before they purchased any stock they would pour over the financials of each potential investment looking for strengths and weaknesses. Then they would confer with a financial advisor to make sure their financial due diligence was correct. They did their homework. And their homework did not end after they purchased a stock. They continued to monitor the financials of each company they invested in. If the financials got better, they invested more money. If the financials got worse, they sold their stock. Sounds a lot like Warren Buffet, doesn’t it? To these self-made millionaires, if you did not do your homework, you were not investing, you were gambling.

Myth #2 There’s Good Debt and Then There’s Bad Debt

Fifty-one percent of the self-made millionaires in my study were entrepreneurs. They started up companies and then ran them as if their life depended on it. They took risks that would make most cower in fear. And they did not shy away from debt. In fact, many took on enormous debt to start, grow or expand their businesses. They used debt to create a business asset that would eventually generate significant profits and make them rich. And that’s good debt. Bad debt is debt that is used to finance losses in the business after the start-up period was long gone. Losses mean you’re not running your business correctly. And using debt to finance a poorly managed company is bad debt.

Myth #3 You Need Luck to be Rich

There is a difference between random luck and Opportunity Luck. To the rich haters out there, random luck is why the rich are rich. Not so. Opportunity Luck is why the rich are rich. Opportunity Luck is a unique type of luck the rich create as a result of having good daily habits. When you have good daily habits, you magnify the opportunity for luck to occur. Good daily habits are nothing more than automated persistent behaviors that help get you closer to achieving the goals behind your dreams. Good daily habits attract Opportunity Luck.

Myth #4 The Pursuit of Wealth is Nothing But Greed

Ninety-three percent of the wealthy in my study either liked or loved what they did for a living, long before wealth and success came along. It took the average millionaire in my study thirty-two years to accumulate their wealth. Ninety-seven percent of the wealthy in my study said greed was not a motivating factor in doing what they did for a living. They did what they did because they liked or loved it, not because they were on some mission to become a millionaire.

Myth #5 A Penny Saved is a Penny Earned

A penny invested is ten pennies earned. The rich in my study invested their money in one or more of these three places: their own business, stock in other companies (see Myth #1 above), or real estate. If you really want to be rich, you must invest your money.

Thomas C. Corley About Thomas C. Corley

Tom Corley understands the difference between being rich and poor: at age nine, his family went from being multi-millionaires to broke in just one night, due to a catastrophic fire that destroyed his Dad's thriving business. For fourteen years they struggled with poverty. There were eleven in Tom's family, and they lived in constant fear of losing their home.

Driven by the desire to unlock the secrets to success and failure, Tom spent five years studying the daily activities of 233 rich people and 128 poor people. He discovered there was an immense difference between the habits of the rich and the poor. During his research he identified over 300 daily activities that separated the “haves” from the “have nots.” Tom decided to write a book to share what he learned. That book, Rich Habits: The Daily Success Habits of Wealthy Individuals (1st Edition), went on to become an Amazon Bestseller in the United States forty times over a three year period. To give you some perspective, in order to be a true Amazon Bestseller in the United States, where you actually receive a specific Bestseller designation from Amazon, you need to be in the top 100 of all books sold by Amazon in the United States in a given day. Rich Habits did that for nearly thirty straight days, rising as high as #7, eclipsing such Bestselling authors such as Stephen Covey, Robert Kiyosaki and J.K. Rowlings. Imagine that - an unknown, first-time, self-published author selling more books than J.K. Rowlings!

Tom now travels the world, sharing his Rich Habits and motivating audiences at industry conferences, corporate events, universities, multi-level marketing group events, and global sales organizations’ presentations and finance conferences. He has even spoken on the same stage with famous entrepreneurs and personal development experts, such as Sir Richard Branson, Robin Sharma, Dr. Daniel Amen, and many others.

Tom has shared his insights on various national and international network, cable, and Internet television programs such as CBS Evening News, NBC News, Yahoo Financially Fit, Money.com, India TV, News.com Australia, and a host of others. He has been interviewed on many prestigious nationally syndicated radio shows, including the Dave Ramsey Show, Marketplace Money, and WABC.

Tom has been featured in numerous print magazines—such as Money magazine, Inc. Magazine, SUCCESS Magazine, Entrepreneur magazine, Fast Company magazine, More magazine, Epoca Magazine (Brazil’s largest weekly) and Kiplinger’s Personal Finance magazine—and various online publications, including USA Today, CNN, MSN Money, SUCCESS.com, Inc.com, and the Huffington Post. Tom is a frequent contributor to Business Insider, Credit.com, Bankrate.com and a few other media outlets.

National publicity has garnered international media attention for Tom and his Rich Habits research spanning 23 countries. Broadcast media, online publications, and television throughout Asia, the South Pacific, Europe, the United Kingdom, and Central and South America have shared his powerful message.

In an effort to help parents, grandparents, teachers and adults become success mentors to the younger generation, Tom released his second book, Rich Kids: How to Raise Our Children to be Happy and Successful in Life in 2014. This book was the self-help category winner of the 2015 New York Book Festival and Runner-up in the prestigious 2015 Writer’s Digest Self-Published Book Awards Contest. In 2016 Tom released his third book, Change Your Habits, Change Your Life. This book provides the latest science on habit change as well as more of Tom's unique research on the specific habits that helped transform 177 ordinary individuals into self-made millionaires.

Besides being an author, Tom is also a CPA, CFP, and hold a master’s degree in taxation. As president of Cerefice and Company, CPAs, Tom heads one of the premier financial firms in New Jersey.
 
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