Maybe, just maybe, all you thought about rich people is a fallacy!

11th Jun 2016
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It is easy to hate the rich, simply because some myths about them are just way to realistic – and we assume them to be true. Being wealthy doesn't necessarily mean spending lavishly, living life king size and having a stylish appearance. A rich person might be equally clueless about managing his personal finances as you are – it might actually be a bigger problem for him/her since they are dealing with much more money here!

So here we are, debunking some of the biggest myths are strongly instilled in us about the really rich.

MythAboutRich

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They must have just inherited it.

The most common view that people have towards the rich is that he or she inherited their family's money. This, however, not completely true. A majority of the rich are self-made billionaires. They come from poor backgrounds and have struggled their way up to success. Run through history and you will find that most successful entrepreneurs came from middle-class families with no "old money" to support their ventures. Even the ones who have just inherited it, they have to work really hard to maintain the fortune their families have bestowed upon them.

The must have managed money well

Not necessarily. They are as bad us, sometimes worse. They are not rich because they know how to manage money. They often hire financial advisors to make sure that money keeps rolling in. All successful entrepreneurs—be it Bill Gates, Mark Zuckerberg or Mukesh Ambani – they all seek the help of financial advisors to manage their money. The entrepreneur may know how to acquire money but entrusts its management to someone who is trained to do so.

A rich man is never in debt

This is a common misconception held by individuals throughout the world. But, this is not true. Wealth and debt can coexist. Rich people can be spendthrifts as a consequence of which they have low credit scores. There are many wealthy celebrities in Hollywood, who are in debt or are on the verge of bankruptcy.

They must be making risky investments!

Great returns don't always lie in risky investments. Entrepreneurs are smart investors. They do not take unnecessary risks to invest in the market. Sometimes they just play it safe and the returns turn out profitable. You don't always have to be a risk-taker to become rich. Playing it safe and smart is the key to financial success.

They must be really educated

Qualifications are an illusion. It is, of course, important to have a better degree to land a high-paying job, but it is not the mandatory condition for getting rich. Statistics prove that a majority of the rich never finished college or are dropouts and those who did get degrees studied with their own hard-earned money. This is not to discourage you from obtaining a college degree, but to bust the myth that better education means more money. The truth is that it all lies in your zeal.

Being rich means having an infinite budget

A wise person understands it better that what's earned over the years can be lost in days. This is the reason a rich person also has a fixed budget like the rest of us. They might have millions in their bank accounts, but they save, too. Saving is essential and the rich knows it.

Getting rich is all luck no skill

A person can never be rich with this perception in mind. Getting rich is about working hard. It takes over a decade for a small company to be raised to the status of an established one. Thousands of hours are put into polishing skills and growing at work. Being rich is about using your talent and expertise to earn money. Luck might be a small factor, but talent and hard work are what lays the foundation.

There are no limitations to human resources. Remember that struggles and risks are unavoidable in your journey to becoming rich and they toughen you to withstand the worst. Be smart and alert; don't miss out on opportunities because you never know it might be that one small step that will change your life forever.

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)

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