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The Three Biggest Lies Your Parents Ever Told You

Updated on January 23, 2015

I'm Just Curious

Big Lie #1-Get a Good Education and a Good Job and You Will Be Financially Secure

Big Lie #1-Get a Good Education and a Good Job and You Will Be Financially Secure

So, you went to school got your Bachelor's Degree, maybe a Master's Degree, or even a Ph.D. and now you are out in the big corporate world ready to be Mr. or Mrs. Big Shot. You got a hired at (what you think is) a great company, got a great health insurance plan, a great life insurance plan, great pension plan, with stock options and other perks and benefits.

You figure you'll put in your 40 years, retire, and life will be good. The sad news is that by the time retirement age hits only 4% of the US population will be financially independent as a result of what they did during their working career, and 1% will be financially indpendent from an inheritance. So, guess what my deluded friend, there is a 95% chance that you will either be relying on someone else for your financial well-being, you'll be dead broke, or you'll be just plain dead.

The fact is that getting a good education isn't going to teach you anything about becoming financially independent, and if you expect to get there by working for someone else, you are most likely living in the "never, never world of someday I'll.........", as in someday I'll start preparing for retirment.............someday I'll start my own business..............someday I'll be rich.........?

Don't feel bad, my parents told me the same lies. But, I realized that they weren't true soon enough to do something about it. There are basically 4 types of people in the world.

1) Employees-Work for someone else-No Risk-No Security

2) Self-Employeed (Sole Proprietor)-Usually Involves Investment, Risk, and Having a Business that Owns You.

3.) Big Business-Own a corporation-Need Investors, Can Rely on Others to Run the Business,Answer to Stockholders

4.) Investor-Takes Money-Lots of Risk

Now, there are options that have the benefits of all 4 of the above, with little or none of the risks. The problem is that most people won't do what it takes to get it done ("If you want to have what other people don't, you need to do what other people won't.). It isn't because they don't WANT to get it done, it's because they don't know how to get it done, or they've been taught the wrong ways to get it done. You need to learn a new language in order to succeed with the other options. If you want to learn how to get it done, let's have a chat HERE.

Big Lie #2-Buy a House Because That Will be Your Biggest Asset

Big Lie #2-Buy a House Because That Will be Your Biggest Asset

Now, don't get me wrong, I'm not saying that you shouldn't buy a house, but you need to understand before you do that a house is a liablity not an asset. The only way a house can be an asset is if it brings in more money than you spend paying the mortgage, taxes, utilities, upkeep, etc. If your lucky, a house will appreciate in value over time, but there is no guarantee that will happen as many of us who fell victim to the housing bust know all to well.

They told us, don't worry, as long as you have a house, you'll never be in poverty. What a crock of sh*t that was!!! So, we bought a house and a few years later all hell broke loose in the mortgage and banking industry because of all the bad bets they made on giving out low-interest home loans to people who couldn't really afford them, and then all of a sudden our house was worth 40% less than what we paid for it. Then the government came along and said "OK, if you are underwater in your mortage, you can refinance at a lower interest rate............and well ALLOW you to borrow up to 125% of what your house is appraised for." Some people were foolish enough to fall for that line, in the hopes that the values of their homes would escalate fast enough that they'd be out from under soon, but now some of them got in so deep they had to just walk away from their homes because they couldn't pay the mortgage, nor could they sell their homes for enough to pay off the mortage.

So, we learned a valuable lesson. If you can buy a house and rent out for more than the expenses, or quickly sell it for more than you paid for it, Then and ONLY THEN is a house an asset.

What do you think about life insurance?

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Big Lie #3-You Can Never Have Too Much Life Insurance

Big Lie #3-You Can Never Have Too Much Life Insurance

Life insurance, in my opinion, is a waste of money. First off, it only pays a person a one-time death benefit or it can pay a survivor a monthly benefit for the rest of their life (wherein lies the major problem). If you want to have true security for your survivors, you need to have a plan that will not only pay your surviving spouse and children for the rest of their lives, but will also pay your grandchildren for the rest of their lives. That's is what leaving a true legacy is all about, and I've never heard of ANY life insurance policy that can provide that kind of financial security to someone's beneficiaries.

Now, you are probably asking, how does one acquire an income that will carry on after death, is inheritable by my children, and is willable to their children, and on and on, ad infinitum. The fact is, there are many companies that offer this as an incentive bonus program, but don't be duped into thinking that just because a company OFFERS that incentive that they will be around to pay it out. Over 60,000 such companies have gone out of business of the past 40 years, and only a handful have survived long-term. An even smaller handful out of that handful are debt-free and likely to survive for a significantly long time. Now, you probably are asking, "Where do I find such a company?" Again, my simple answer to you is let's chat HERE.

J. Paul Getty said it well "I'd rather have 1% of the efforts of 100 people, than 100% of my own efforts." Another well-known business magnate said “A friendship founded on business is better than a business founded on friendship.” John D. Rockefeller Another great said "When you care more about people than you care about money, money will eventually find you."Boris Mezheritsky

These are all very wise people, whom otherwise people emulate. They didn't get wealthy by accident, they got wealthy by design, and each carried other people along with them as they attained their wealth. An important lesson one must take away from this, is that if you want to have an income such as those who are wealthy do, you must learn from people who are already wealthy at every opportunity.

Take Warren Buffet for example--He was just a guy with 40 bucks, a big dream, and an idea. People probably laughed at the idea of putting a pinball machine in a barber shop, the first time. Then that little pinball machine made some money, and with the profits, Warren Buffet bought another pinball machine and put it into another barber shop, and this is how one billionaire got his start. Now instead of buying pinball machines, he buys corporations (and a number of them are NWM corporations.)

My point is, that anybody, anywhere, who has a big dream, ambition, and a vehicle to accomplish those dreams can have anything they want out of life. You don't need special education, you don't need money, you don't need a big house, or a fancy car, you just need you and a few other people who have a big dream too. This is where the term "Dream Team" comes in.

Having a Job vs. NWM

Set Schedule
Work When You Want
Pay Decided by Superiors
You Decide How Much You Want to Earn
Limited Vacation Time
Vacation Whenever You Want for as Long as You Want
Can be Terminated at Any Time
No Layoffs-No Demotions
Pay Stops at Retirement
Pay Continues Indefinitely
Pay Is Not Willable to Children
Pay is Willable to Heirs
Can Only Work in Certain Places
Can Work Anywhere in the World Where Internet is Available
Have to Pay for Your Own Vacations
Free International Travel is Usually an Incentive Bonus
Don't Get Paid Anymore if You Quit
After 3-5 Years of Consistent Productive Effort, You Can Walk Away and Still Get Paid
Work 40 Years and Retire on 40% of Your Working Income
Work 3-5 Years and Retire on an Income That Steadily Increases

What's the Real Skinny on Retirement?

The Bureau of Labor Statistics also states:

Out of 100 people that start working at the age of 25, by the age of 65:

-1 is wealthy.

-4 have enough money to retire.

-63 depend on social security or charity.

-29 are deceased.

And the Really, Really SAD statistic is this:

-95% of people, age 65 and over cannot afford to retire and work until they die.

-Home based business wage earner’s success rate is over 85% compared with small businesses like retail shops and restaurants, at about 95% failure rate after 5 years.

If You Are Considering a Home-Based Business

If You Are Considering a Home Based Business-All Are Not Created Equal

1. Look for one that has stood the test of time (remember 60,000 have failed in the last 40 years)

2. Look for one that is debt-free-Chances are better over the long-haul.

3. The term NWM takes in a variety of types of businesses that can be operated from home. Most can be started with little or no money.

4. Be wary of any business that is a start-up, where people only make money by recruiting other people, where there is no product that adds value, that has a product that is not consumable (ie repeat business).

5. Do your due diligence before you start with any company and learn everything you can about the company, the products, the compensation, etc.

6. Be aware that almost EVERY major corporation in America that has a product to sell uses an independent network or marketers to help promote their products. Just a few of those companies are Amazon, Wal-Mart, Sears, Target, Macy's, Boscov's, Kohl's, AutoZone, and the list goes on and on and on. Most people are not even aware of this.


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    • pocono foothills profile image

      John Fisher 3 years ago from Easton, Pennsylvania

      Hi Seafarer Mama, Thanks for your comment. I believe the true measure of success is being able to help other people succeed.

    • pocono foothills profile image

      John Fisher 3 years ago from Easton, Pennsylvania

      Hi teaches, Thanks for you comment. I'm not knocking education, I'm just saying that most forms of education do not really prepare anybody for being independent. Even most business programs don't teach people what it takes to succeed in business. If they did, there wouldn't be such an enormous failure rate in the business world.

    • Seafarer Mama profile image

      Karen A Szklany 3 years ago from New England

      Great hub that has gotten me thinking. The information you have posted here confirms other things I have read and heard. Sometimes it does take time to set oneself up for a more secure future, but I know that friends help and mutual support is very uplifting on a number of levels.

      Thanks for putting this together. It's a very timely piece.

    • teaches12345 profile image

      Dianna Mendez 3 years ago

      You share some interesting information here and make some valid points. I believe that with determination, vision and hard work one can do almost anything they put their mind and will to accomplish. Although, I believe education will give a person much support, provide a better opportunity for success and give them an edge when conducting good business practice and forming strategies. Good post and one that will give many readers encouragement to get out there and follow their dream.

    • pocono foothills profile image

      John Fisher 3 years ago from Easton, Pennsylvania

      Hey Old Poolman Guy, Thanks for your comment. I keep telling my kids the same things that I wrote about 'cuz they need to be prepared for some rough times ahead.

    • profile image

      Old Poolman 3 years ago

      This is an awesome hub and thanks for sharing. While reading this hub I was thinking back over my life and can't even remember how many times I heard these three things.

      Well guess what. At one time all of these were well intentioned and good advice. But times change and the advice has to change with it.

      If my children were still young I have no idea what I would advise them in today's world. Probably just tell them to hang on because it is going to be a wild ride.