How many times have you been told that saving is everything that you need? All the time, right? Here is the problem that you are never told: Hidden taxes eat out your savings.
In other words, as you continue saving and making money, federal and state taxes grow along the way. And when they come out, you are in a state of shock. You would be wondering if you were saving all your life for the government. This is the saddest part of ‘formal’ financial schooling.
The point is that they (formal economists) tell you only one side of the picture. And when you follow the instructed path, a collision comes in with a shock. At this point, if you do not have real-life experience, you will be drowned in the spiral gyre.
Thus, there are certain glitches in the matrix that are not told by so-called financial gurus.
Some ‘Glitches in the Matrix’ that are often overlooked
For example, some influencers will tell you that buying high-risk bonds is the only quickest way to get rich. They will give you examples of Larry Elison and Warren Buffet to make you believe what they have to say. The truth of the matter is that living richest folks like Warren Buffet and Lary Ellison do not invest in high-risk bonds.
While there is no such thing as safe haven investment, you also need to evaluate the market. Just because an investment portfolio does not mean you should invest in it. Instead, you will have to assess the performance of the stock prior to investing in it.
Investing your hard-earned money into a portfolio is a big deal. And you should have a crystal ball of every in and out of the portfolio prior to putting your money into it.
Just because an investment portfolio is risky does not mean you should buy into it
However, it is essential to understand that investing is by far the most effective way of building a great net worth. Meaning, if you want to get rich, simply saving money will not help you. Instead, you will have to invest your savings and increase your cash flow.
On the flip side, you also need to know that not every stock is worth buying. If the portfolio sounds too good to be true, it is not true. And you will have to ensure a complete assessment of the stock prior to buying it.
As a result, you will see success in your investment journey. Your portfolios will grow and your net will skyrocket. So, it is important to have financial literacy and formal schooling on personal financing.
But one also needs to understand that there is no fine line that defines personal financing. The real world is ruthless and it is not always black and white. That is why one should take the advice of so-called financial gurus with a grain of salt. And respond to real-life events sensibly.