12 Worst Ways People Try to Get Rich

the number one worst way people try to get rich multi-level marketing AKA MLM in the world of business multi-level marketing companies hold an interesting position MLM companies like mway and tupperware make money not by directly marketing their products to Consumers but by using independent salespeople but that is not what makes them unique it is how these salespeople and in turn MLM companies make money yes like any other sales people in most other Industries MLM sales people Market their products and make commissions on those sales however when these sales people are able to recruit more sellers

to their team they also get a cut of the new salesperson's sales and what this system of salesperson taking a cut of a newly recruited salesperson and that newly recruited salesperson taking a cut of another newly recruited salesperson does is it creates a cycle of constantly looking for new salespeople instead of actually selling its products in this business model the MLM company isn't profitable because it is developing great products and marketing them well rather it is making money because it has a continual pipeline of naive salespeople willing to put up money for a promise to

make money quickly and while multi-level marketing itself is not illegal there are a lot of shady practices with this business model they're often taking advantage of the most vulnerable selling them a dream of making a lot of money quickly from the comfort of one's home and at their own time however however when we look at the data the truth is that most of the high earnings marketed by these MLM companies are made by a small group of people at the top of the pyramid and most participants make very little or actually lose money by participating

MLM may sound tempting on paper however don't waste your time and money on them there are so many better ways to make money or start a successful business the number two worst ways people try to get rich the theme of business models starting a business with minimal research starting a business being an entrepreneur is touted as a sure way to become a gaziler these days you want to become rich don't waste your time grinding it out in a 95 no chart your own pathway become your own CEO don't be a wuss take the risk however

what such message neglects to mention is that starting a business a profitable business requires a tremendous amount of work pre-work in the form of research there are so many businesses and business models out there and no two are the same one might just need a handful of well-serviced customers another might require thousands or tens of thousands of customers to be profitable one might be a service-based model requiring a more Hands-On approach another might be an all product based model requiring manufacturing as well as distribution whatever the case if you want to start a business you

have to understand first what you're getting yourself into what resources are required what skills are important how long will it take to become profitable how much Capital do you need up front there's a reason why almost half of most businesses fail within the first 5 years years not only is it a Cutthroat environment many entrepreneurs fail to grasp what is required to become successful I'm a huge fan of starting businesses and becoming an entrepreneur I've been on both sides a 9 to-5 and a business owner and there's so much to learn from being an entrepreneur

however make sure to do your research don't just blindly jump right into it thinking you'll figure it out as you go spend the time to research the market talk to people who've done it and position yourself for Success all right but let's say starting your own business is not your thing you don't want to do the heavy lifting of actually starting a business but what if your friend comes to you with a guaranteed business idea the number three worst way people try to get rich investing in a friend's guaranteed business idea you might have a

friend who always has ideas amazing ideas to make money and they come to you one day and say they got a business idea that cannot fail it will literally print money they just need some Capital to get started and knowing that you're good with your money they approach you I would normally keep this business idea to myself but given you're my best friend I want you to have the first divs you know the janitor who made that 1% investment in Google and is now a billionaire well what if I was to tell you this idea

is better than that and they go on and on about how their business idea cannot fail they want you to be part of their guaranteed success you know what you should do right you should pass when something sounds too good to be true it most likely is in the world of business there is no such thing as guarantee the market is constantly changing the consumer appetite is constantly evolving and new competitors are constantly entering the market so do your own research what does the market look like how competitive is the product how much research has

your friend done how much experience do they have bottom line be wary of guaranteed business ideas because despite how much we don't like to hear it there are no guarantees in life all right so let's say that you do want to learn how to make money you want to do your own research and you recently saw some ads about online courses that promise you wealth overnight wealth at that let's talk about that now the number four worst ways people try to get rich buying overpriced online courses promising quick wealth if you've been in the online

space there is no shortage of these types of courses make $20,000 a month with this Drop Shipping Master course learn how to build a highly profitable e-commerce store without holding inventory earn six figures helping others to succeed with this business coaching certification program become a certified business coach in 30 days no experience required make tens of thousands in this real estate wholesaling boot camp we'll teach you how to flip houses and sell contracts with no money down again when things sound way too good to be true the chances are that they most likely are there

are tons of great online courses and communities online we're living in a digital era now and so much good learning is happening online however there are also tons of really bad products out there my recommendation is that if anyone is promising anything quick or guaranteed be very cautious in the wor of money anything related to fast and quick or either Super Lucky or just outright wrong true wealth is built over time one block at a time in talking about building true wealth one block at a time do you know what is one of the most

effective strategies to do that by having a good high level visibility over your finances which is why I'm excited to talk to about Empower who I'm partnering with for today's video with any problem it is hard to tackle the issue until we understand what the problem is and when it comes to our personal finances investing often it is lack of data what am I spending all my money on how much money do I have in all my different investment accounts what is my net worth what am I invested in and am I well Diversified well

Empower can help with a free personal dashboard I've been using it for many years and once you connect your account its beautiful dashboard allows you to see in one glance where you stand with your finances additionally if you want to delve deeper into your Investments it's investment checkup tool helps you to see your complete portfolio asset allocation in one page and again all these functionalities and more are completely free when you sign up so if you want to get a better handle on your finances if you want to effectively build wealth one block at a

time I highly recommend you check out Empower today please go to my special link to get started with their free dashboard I'll also have a link in the description below all right with that said let's get back to the video the number five worst ways people try to get rich overindulging in luxuries to attract wealth yes that is right spending money on luxuries with the purpose of attracting wealth why do some people do this it is because some believe in the notion of spending to look the part that if you look the part with time

you will eventually become that part really wealthy yes for some of you guys hearing this for the first time I know how ridiculous this could sound but the truth is that so many people fall for this so-called strategy to build wealth at one point in my life I did so as well having grown up in a first generation immigrant family I was not taught much about money growing up plus I bought into a notion that if I can look rich if I had all the right luxury toys I too could One Day become rich but

the sad truth was that I was left with a bunch of credit card bills but no real wealth to show for the true proven Pat to wealth does not start with spending some people may relabel it as investing in oneself but let's not kid ourselves if you want to truly build wealth it starts with saving not spending our hard-earned money but saving it and investing it for appreciation don't believe in the false myth that you can attract wealth by spending to look the part the number six worst ways people try to get rich in the

line of trying to attract wealth by playing the part joining a luxury lifestyle Club most recently my family and I had a chance to visit the lovely city of London one day when I was people watching from our hotel room I noticed a stream of super nice Vehicles dropping off people at an establishment across the street from our hotel and this didn't just happen once it would happen throughout the day now being the nosy individual that I am I had to know what was going on across the street from me I mean why wasn't I

invited right right anyways what I found out later was that it was a location of an exclusive London private members club which just a several th000 a year you rub shoulders with the who's and who of London sounds appealing right I mean that's how you build wealth right Jim Ron constantly talks about you being the average of The Five People You spend the most time with so I must spend more time with these luxury lifestyle Club people right yes having the right people around us is important however we must be thoughtful about how we go

about it we can't just buy our way into the right Network we have to be intentional about what networks We join and for what purpose is it for business networking or to develop a specific skill if it is just to rub shoulders with rich people that in itself will not return much except disappointment and an empty wallet the number seven worst ways people try to get rich Let's Start getting into investing investing with the magic fund manager in the world of investing fund managers investment managers who consistently beat the market are held as demigod there's

a reason why names like Warren Buffett Peter Lynch and Benjamin Graham are spoken with reverence now I'm not here to say there are no investors who can beat the market as these fainted investors have shown they exist however the reality is that they're very rare so rare that the chances that your fund manager will rise to the level of these Giants is near zero but the investment firms don't want you to see it that way they'll say that their investment managers are special they want you to believe that their fund manager can beat the market

like Warren Buffett and Peter Lynch because that is how they keep you investing with them in their very expensive actively managed funds my friends there are better ways to invest in lowcost Broad market index funds that track the market instead of trying to beat them don't believe in the myth of a magic fund manager they might exist but I'm sad to say the chances are they're not your fund manager the number eight worst ways people try to get rich taking out massive loans to buy real estate without knowledge real estate similar to business is touted

as a sure way to build wealth and there is a good reason in the history of assets real estate is one of the oldest assets that people have built wealth with land owners had control and power and they leverage that control and power to their financial benefit extracting rent using land as a collateral for other Investments and sometimes using it to outright enslave people today we're thankfully living in better times however the power of Ral estate still holds true all people need a place to live and work so real estate will always hold value the

issue is how some people people go about trying to make money from it without much knowledge about the specific real estate asset convinced by the promise of riches some take out massive loans to buy properties they have limited understanding of not realizing that their property is sitting in a not so nice neighborhood or it has a strict zoning restriction so they're not able to extract maximum value from it or it is just outright expensive they overpaid for it so they're already starting out from the negative from the get-go real estate well can be a great

asset to build wealth if done right if done wrong can be a terrible wealth Destroyer do your research and be cautious before we go on to the next Golden Rule I want to share a cool for tool with you in your financial Journey do you often wonder how you're doing with your money am I doing horribly okay or amazingly well well there's a simple quiz you can take to find out by answering just a few questions in this Financial Health Awareness quiz you can receive a free customized financial plan a plan that will show you

how you're currently doing with your money and ways you can make it even better so make sure to go to the link I'll have in the description below to take the quiz and receive your free plan all right with that said let's get back to the video number nine worst ways to get rich day trading without experience trading stocks is another very popular strategy that is touted as a way to make money work from the comfort of your home Buy Low sell High you just need to work the market and you can make money however

the truth is that day trading is a serious business and not something that you just dabble in if you want to be a sophisticated Trader it requires a tremendous amount of investment and knowledge of the market and the security that you want to trade professional Traders from Big Banks go through a rigorous onboarding and hiring process just to have a chance to trade for their companies and once they start trading they continue to study and research in order to stay on top of the latest strategies financial news and the market trends reading just a few

books on day trading and Reddit forums is not going to make you competitive enough the data is clear in the fact that most amateur day Traders lose money because they just don't have the edge that a lot of big banks have I've seen too many people whove got in trouble by overleveraging on Meme stocks so or over betting on penny stocks if this is something you want to get into make sure that you understand the risk involved the number 10 worst way people try to get rich buying lottery tickets buying lottery tickets may seem harmless

and surface I mean just for a few dollars you could potentially win Millions no brain error right however the truth is that the chances that you will win any money in the lottery is ridiculously low there's a greater chance of either being struck by lightning or getting eaten by a shark than winning Millions through a lottery ticket and it's not just the money that is being wasted when you buy a lottery ticket you're wasting your precious time as well as your brain bandwidth fantasizing about the winning you would better be served by spending your precious

money energy and time on more productive activities such as making money or actually studying strategies that will pay off in the long run understanding different types of Investments building career capital or starting a business the number 11 worst ways to get rich in the line of lottery tickets gambling just like a lottery ticket gambling offers a supposedly easy way to get rich quickly whether in person or online there's no shortage of ways to gamble these days from casinos and sports betting to online poker and virtual Sal machines the opportunities to gamble are endless however the

odds are always stacked against you casinos and bedding platforms are designed to ensure that the house always wins in the long run leaving most gamblers with losses rather than gains even for those rare few who hits a lucky streak the temptation to keep playing often leads them to lose everything that they've won gambling prays an emotion not logic it encourages people to chase losses and believe in the illusion of a big win right around the corner instead of gambling as I mentioned earlier spend your time and energy on tried and true strategies that build well

steadily and reliably over time number 12 worst ways to get rich blindly following random investment advice and social media and that includes Yours Truly Financial tortoise I talk a lot about investing in this Channel about what investments avoid and about what investment you should consider and while I think they sound device remember that I'm just a random guy on the internet making videos validate everything that you see and hear online well there's a lot of good financial information being shared online the truth is that there are tons of other bad ones out there Tik Tok

influencers claiming that a certain stock or cryptocoin will hund times in a month YouTube personalities hyping the latest get-rich quick schemes without disclosing the risks involved even well-meaning creators might oversimplify complex Financial topics or present strategies that are not suitable for everyone the problem with blindly following this kind of advice is that often leads to lack of nuance context and consideration of your unique financial situation the key to building lasting wealth is not blindly following Trends or influencers but developing a solid base of financial literacy where you're able to filter out the bad and identify

the good remember true wealth is built steadily over time not through the promises of quick easy gains thank you guys for watching the line of dangerous Financial advice if you want to learn about some of the most dangerous Financial products in the market please check out my video here until next time all the best but