Have you come across self-proclaimed gurus who bombard social media with promises of wealth, success, and financial freedom? The tips are packaged well, and their success stories in realising their dreams by moving forward are very interesting to follow, right? But are they accurate and practical? Not always.
So, in this article, we will uncover facts that are rarely, if ever, discussed by financial gurus. We hope that by approaching financial advice with an open mind, you will be able to avoid it.
Overnight Success is only a myth
I’m sure you’ve seen headlines written in bold “overnight success” by financial experts, right? Headlines from copywriting are often used as an illustration of how to quickly and instantly increase fame, wealth, or achievements in a particular field.
Of course, this attracts clicks and attention because it is normal for anyone to want instant financial success, but there is no truth to this. In reality, it takes effort, sweat, and blood to achieve success, and it takes a while for the process to be completed.
Even Robert Kiyosaki, a well-known best-selling finance and self-development book author with an educational background in business and entrepreneurship, went through failed businesses until he could write fluently and succeed as both a businessman and writer.
His work is based on the valuable experiences he has gone through, and it talks about hard work, failure, and learning experiences. After all, “overnight success” cannot be achieved without consistency, resilience, and a willingness to learn from failure.
No stress, no gain. No commitment, no work-life balance
Rarely will financial gurus tell how a startup founder took out loans from a licensed money lender to fund their ventures or new products and worked hard to make the business succeed and pay their debts.
The point here is that to run a lucrative business, successful entrepreneurs are willing to work long hours and even sacrifice personal and family time. That means you’re more likely to not have a proper work-life balance.
You must have heard that Elon Musk, CEO of Tesla, is famous for his intense working hours and admits that he sometimes falls asleep on the factory floor when the company’s production phase is up.
If even robots get worn out if they function without stopping, then human beings are no different. There will be stress, anxiety, and pressure, all of which harm the mental and emotional health of entrepreneurs.
So, starting a business requires a lot of sacrifices, time investment, mental health, and money. We suggest getting enough sleep is critical to long-term health and success.
Emergency Funds Play Vital roles
Many financial gurus talk a lot about building a business or investing but not much about saving, even though it’s just as important. There is a statement from the book “What Financial Experts Will Never Tell You” that says, “Saving is Actually “Delayed Spending”. That means when and how you spend your money is the most important factor. Saving money is essentially “spending” money because it is simply set aside to be used later for critical necessities, investments, and wants.
According to the book, a person should save at least 10% of his gross salary throughout his life to build a money-making machine that will generate the income he will need as he grows older.
Individuals can establish a financial buffer over time by saving 10% of their gross pay. Saving 10% of our income may allow us to benefit from compounding, in which our initial savings and interest yield extra returns. And, over time, the savings can add up to a large sum, providing financial security as well as prospects for investment.
Savings are divided into three categories: emergency, emotional, and long-term (investments). The money you should be “spending” in the future should go to emergencies, emotional needs, and long-term retirement.
Unexpected expenses can occur at any time, and having a financial safety net is critical to overcoming financial troubles that may arise in the future. Building an emergency fund may not be as exciting as exploring high-yielding assets, but it is a necessary component of financial stability.
Conclusion: Should You Still Believe Financial Gurus?
We cannot deny that almost all self-proclaimed financial gurus offer insights and strategies for financial success. But can we really apply their teachings to our financial lives? Well, it is up to you; however, approach their advice with a critical mindset. Temper their advice with the recognition of the reality that financial success, especially through entrepreneurship, is a slow process with many bumps in the road and that emergency money is essential for establishing a solid financial base.
And if you need more grounded financial advice or even aid through loans, there are licensed money lenders in Singapore who may provide you with different options for your financial well-being. With their experience and assistance, you can make informed decisions that match your personal goals and circumstances.