11 Lies About Millionaires

Photo by Giorgio Trovato on UnsplashThis may surprise you, but I love watching Fox News. I love hearing from people I disagree with. I'm enthralled by things I'm opposed to. This is for many reasons; diversify opinions I'm exposed to, strengthen my defences, nurture empathy. There's many reason but one comes to mind in particular, a reason I wish more people would consider.

It makes things more difficult but more honest.

Just as we're used to our echo chambers, so are the people we try not to listen to. They're not tailoring their message to us, just as we aren't to them. And when you're not busy trying to ingratiate yourself to others, when you're among people you think will agree with you, you're prone to let the mask slip and show what you really believe.

So imagine my surprise, while doing research on another topic, I come across a Forbes article entitled "11 Truths About Millionaire", written by David Rae, a personal finance contributor (who's main job is tax advice (more on that later)).

This is a business and investment orientated magazine, catering to business people and investors, presenting an article, written by someone who is used to dealing with them, as though these are empirical truths and regular people just can't swallow, like a pick-up artist guide trying to redpill you into drugging dollar bills.

As I said before, what you say you believe is extremely telling of what you really think. And this, an article for millionaires, written by a consultant to millionaire, in a millionaire magazine is, ironically, extremely truthful in the lies it propagates.

It begins;

If Kylie Jenner can become the world's youngest "self-made" billionaire at 21, surely the rest of us can manage to become mere millionaires over our lifetimes... 

… I'd challenge you to ask yourself, are you on track to reach financial freedom or become a millionaire? Alternatively, are you sabotaging your financial future, making the 11 common financial mistakes that will keep you from ever building significant net worth?

Straight off the bat, we've already gotten a lie. Not only had Kylie Jenner's billionaire status been called into question from its very inception (due to factors like tax, personal accounts vs corporate accounts, etc), with the glaring issue being the fact she was already born into wealth and fame (long before her stint on TV and in make-up), but even Forbes themselves, months after the publication of this article, declared her no longer a billionaire, merely a 900 millionaire (how embarrassing!)

But notice the guilt trip. No mention of her advantages, of her backers, of her status. Because she can be a "billionaire", the onus is now on us to prove ourselves, to be challenged. It's rich (ha!) to talk about people sabotaging themselves with the coming "mistakes" when you can't even acknowledge how people are literally born in a position that saves them from these mistakes.

REASON #1 You Are Afraid of Investing

It will be nearly impossible for the typical worker to become a millionaire without at least doing some investing. A few movie stars and pro athletes will break this rule, but from there they will have trouble making their money last if it invested and grow over time.

You may feel safe, stuffing your life saving under the mattress but you are losing money each and every day after inflation eats away at your purchasing power.

… While I will admit, there are risks associated with investing in anything from stocks, bonds, ETFs, mutual funds and even buying a home. In my opinion, the risks of not investing are even greater. By not taking any investment risk you are likely guaranteeing what you are most afraid of, running out of money in retirement.

Two things here.

1. For people like this, who scoff at others "stuffing [their] life saving under a mattress", money is exclusively a tool of investment. They don't rely on it (at least not for food and shelter). They are already secured. They have enough coming in for food, for housing, for health. It's easy to talk about investments when you have the money to investment. I won't go into details, but this week I will have a little over €200 in my bank. I, thankfully, have paid my bills already, and only need to wait until next Tuesday when I'll get my next welfare payment. I need to keep a close eye on my expenses for the next seven days as I need to make sure I can afford my medication due this Thursday, as well as any emergency that may happen… WHERE AM I GETTING THE MONEY TO INVEST IN APPLE!
2. He just glosses over the risks of investment. Let's call it for what it is; it's gambling. At the end of the day it is gambling on companies. And while David does admit there are risks, not only does he try to paint this in a positive light ala Stock Bro mentality (bigger the risk, bigger the reward), need I remind you he's a consultant! He makes money off you taking his advice, off his recommended investments! You pay him up front, regardless of how your investments work out! It's like a butcher telling pigs there's money to be made in pork!

REASON #2 You Are Not Saving Enough

Assuming you've overcome your irrational fear of the stock market and have crafted the perfect investment portfolio… if you don't save enough move along the way you will never become a millionaire. After all, it is not what you make but what you keep. I know plenty or high-income folks without a pot to piss in - I do have the pleasure of living in a Beverly Hills zip code…

…The saying is true; a penny saved is worth more than a penny earned. Remember, you don't have to pay taxes on a penny saved.

Stop procrastinating; there will never be a better day to start saving than today. Even if you can only save a tiny amount, you will be better off than if you never started at all. I bet you will be surprised how you don't even miss the money you are socking away.

Really quickly; in regards to the "irrational fear" comment… FUCK YOU! What kind of patronising tripe is that! People who didn't even play the stock market have lost their homes, their jobs, their pensions!

Sorry, but that irked me.

The real issue I take here is this Avocado Toast logic that somehow you can save your way to millionaires. The guy who openly admits that his zip code puts him easily in the high six or seven figure club unironically talks about saving, with a cheeky wink about savings not being taxed.

Bank fees are a thing. Depending on your account you could be charged monthly, per transaction, at a rate that varies with total account savings, or all three (as it was in my case with Chase bank while I lived in America). The guy who laughed at you for saving your money in the last paragraph is now scorning you for not saving it. As before, this logic only works if you have the money to both invest and save. Where is someone with bills, debt, possibly two or more jobs, family, and rent supposed to find the money? Oh yeah, that one coffee you bought that time. That messed you up.

Saving is important. But most people save to keep their money, to use later, for a deposit, or in case of emergencies. You can't see people saving for upcoming bills, for rainy days, for possible hospital visits, and then laugh at them for being "irrational". The whole point of irrational fears is that they aren't based on experience. Trust us; our fears are based on experience!

REASON #3 You are Living Beyond Your Means

…There are many people who try to finance their American dreams. They push their budget to the breaking point. Some live paycheck to paycheck, others fall into the costly trap of credit card debt... Constantly drowning under an insurmountable pile of consumer debt, is stressful and costly.

…Does your financial plan consist of "faking it 'till you make it?" Alternatively, "Keeping up with the Joneses?" The Joneses are probably as broke as you are, so not much to aspire to there, if you ask me. Don't make me tell you not to try and Keep Up with the Kardashians……

Reading this article can give you the cognitive dissidence equivalent of whiplash. Invest your savings! Save and don't spend your money! Don't owe money!

Again, we're in the realm of Avacado Toast, where there's this presumption that those dirty non-millionaires must be up to no good, being irrational, or risk-avoidant, and now financially stupid, taking debt they can't afford (forget the fact the debt taken on keeps these people afloat and props up an economy that desperately screams at people to keep the wheels of consumerism turning).

But have you noticed something so far? For an article that talks about truths about millionaires, it seems to do it in a round about way, calling people who aren't irrational or fearful. It's almost as if David is trying to say millionaires are not these things without saying it out loud. It's almost like someone is trying to glosses over advantages, luck, resources, and connections in favour of declaring themselves just simply better.

Huh.

Strange.

REASON #4 Wasting Money On Debt Payments

This is just #3 again. Uh-oh David! Don't tell me there's only so many ways to avoid saying Millionaires are just better than other people!

Give a name and chances are you'll pick someone who's accrued some form of debt. Actors, CEOs, investors, entrepreneurs. Everywhere from Silicon Valley to the White House are filled with stories of people who lost everything because they owed money.

REASON #5 You Ignore the Little Things

Five dollars here, twenty dollars there, all these little expenses can add up. Some are disguised as a convenience; others are just stupid. For example, have you ever picked up some magazines at the checkout line? Did you even think you could probably get a year's subscription for the same price, or sometimes even less? Or you pay the exorbitant airline fees to check bags when you could get away with a carry-on. The list goes on and on. Moreover, so does the busting budget.

I was just speaking with someone who happens to have a multi-million dollar income who canceled Netflix because she wasn't using it enough. She was busy and preferred to stream via Hulu, at least this month. Could she afford both? Absolutely, but she but as someone conscious of where all her money goes, she decided she wasn't getting any joy from her Netflix account. If someone making over a million dollars per year sees the value of not wasting $11.99 per month, perhaps you should too.

Wait a minute! This is just #2 again; penny pinch your way to success. I'm starting to think David's run out of ideas!

REASON #6 You Make Unhealthy Choices

A whopping 98% of millionaires consider good health to be their most important personal asset, according to a recent US Trust study. Without your health, no amount of wealth will be able to buy back your quality of life.

Take the time and spend the money to ensure you are getting all of the necessary screening and physical exams that your health care professionals recommend. If you don't have a primary physician, get one. Look to exercise (more) and increase the health value of the food you consume. I am aware that real food will cost more than junk food, but this is the one area I almost always advocate for people to spend more on.

… Shying away from anything processed when possible. We have accounted for this extra expense, by cutting back in other areas. … We don't make money when we are home sick.

Oh god, we are going in circles! This is just investment advice repackaged as invest in yourself.

Get a doctor! With what money? I don't know.

Go to the gym! With what money? Why are you asking me!

Oh but it's okay. David says "I am aware that real food will cost more than junk food, but this is the one area I almost always advocate for people to spend more on." Well thank goodness for that.

I feel like I'm repeating myself, but in my defence so is David, yet he still ignores the obvious; you can only afford what you can. Google "Food Deserts"; there is such a thing as having no choice but to eat processed food, lest you spend even more money travelling to your nearest grocery store for anything even remotely healthy. For David it's a simply drive or delivery. It may even be a quick walk. For people in working class communities they could be miles from anything healthy. For Daivd, his health is just a simple case of "cutting back in other areas". For other people it's them literally going to different areas of their city.

And of course it's great to talk about health when you make your money from screwing over other people's health. How many millionaires have made their fortunes in tobacco, oil, pesticide, alcohol, fast food, and deforestation? 

REASON #7 You Don't Have A Spending Plan

This is the fifth penny-pinch advice! I get this is his job, but surely this is confirmation bias. You can't say your advice makes millionaires when the only people who can afford your advice are millionaires. At best, you can say your advice hasn't made them un-millionaires, but by that logic so can I!

REASON #8 Inadequate Tax Planning

As we mentioned early, it's not what you make, but what you keep. Many people love to get big tax refunds, it's like found money, right? No! The reality is, if you get a big tax refund, you have just given the government an interest-free loan. All this while you are suffering the consequences of paying sky-high credit card interest for the privilege.

…look at adjusting the amount of taxes you have withheld from your paychecks. This could help free up cash to pay down your credit cards faster. Even better, this could be the money you invest each month to get on track to become a millionaire.

Proactive Tax Planning is a major part of becoming a millionaire. Keeping more of your hard-earned money frees up more money to be invested. The more money invested, the faster wealth can build up.

David! Sssh! You're not supposed to say the quiet part out loud.

This really shows the level of self-importance millionaires see themselves with, where taxes are their "hard-earned money" and the faster they cut them "the faster wealth can build up".

I wonder what David makes of the Panama Papers?

REASON #9 You Chose the Wrong Career Path

If I had a nickel for every person, I knew who went to law school, but isn't working as an attorney I would have another million bucks. Anyone, with any income, can become a millionaire. Bigger paychecks will increase the odds that you reach the status of having a million-dollar net worth.

For those who hate your job or career, it will show. This can result in slower career advancement over time. While it may be easier said than done, choosing the right career path that comes with the potential to earn enough to support your desired lifestyle and is something you actually enjoy is a major life quest for many.

Try to make sense of that.

Anyone can become a millionaire… you just need a bigger paycheck.

Anyone can become a millionaire… you just need to parry into a job that'll pay you more with the skills, education, and experience you currently have.

Anyone can become a millionaire… you just need the right career (which is never mentioned).

Anyone can become a millionaire… you just need to not be a lawyer (apparently).

I can't tell if David's job is very easy or if he really doesn't see the glaring holes in his logic. Either way, David must have chosen the right career.

Again, do you see the hidden biases going on here? If you're a millionaire, it's because you chose the right career, it's because you're smarter with money, it's because you're better.

For something as unnatural as wealth hoarding, some people are really desperate to see it as a fact of life, a footnote in the origin of species.

Reason #10 You Chose The Wrong Spouse

There are many financial benefits to being married. Choosing the wrong spouse will make your quest to become a millionaire much more difficult. If one spouse is a spender and the other is a saver- the spender tends to win out. When considering a life partner, don't forget to take into account how you each think about money.

WOW! Just… WOW!

Now if you weren't with me before, you've got to be with me now!

We've gone from it's all your fault to let's blame other people. At least before there was something to be said about the undertones of personal responsibility, but now you're love life has to cater towards your obsession of being a real life Smaug.

Have you invested? Have you saved? Have you got the right career? Still not a millionaire? Time to kick the bitch to the curve!

Of course, in every relationship there will be a frugal one; that's me. Does it bug me? Slightly, but I still love my girlfriend. Why? Because she's a person and not liability in a budget!

Imagine actually having a real, literal price for your love.

REASON #11 You Lack Purpose In Life

… Over the years, I've observed that many of my happiest and most successful financial planning clients actually love what they do. The move through life with an extra spring in their steps.

… I can honestly say I've seen real-life examples of this over and over again in my career helping people better lives through financial guidance.

Depressed? Suicidal? Not sure what to do with your life? Try making money, it worked for all of David's clients (who have the disposable income to pay him to advise them on how to invest the rest).

This just seems like more confirmation bias. I bet people who are making millions are happy. I bet some are very sad too, hence why they turn to drink, drugs, and gambling. You know, the same way there are people who are dirt poor and are happy or sad.

Let's do a quick run down.

1. Millionaires are brave mavericks.
2. Millionaires don't waste money.
3. Millionaires aren't frivolous.
4. Millionaires don't accrue debt.
5. Millionaires count pennies.
6. Millionaires are healthy.
7. See point 5.
8. Millionaires are tax geniuses.
9. Millionaires chose to be millionaires.
10. Millionaires are alphas that don't settle.
11. Millionaires have purpose.

We tell ourselves lies all the time. We're fat, we're fine, we're not good enough, we're okay. For the most part, while no perfect, these lies are just stories we tell ourselves, either to help manage our egos or to build up our confidence. But the issue is when not only do these lies become blinding and shield us from fair criticisms of how we live our lives but also when the lies we tell ourselves start shaping how we view others.

Are there legitimate reasons why you should save or invest your money? Of course. You should budget, you should plan for things, you should try to explore other avenues. But that's not what David has been presenting here, nor how many millionaires think about themselves. In both cases, they're putting the carts before the horses. They are millionaires therefore what they do must be how they became millionaires, not they are millionaires despite what they do. There are people who've been in debt, who've lost, who've been divorced, who've wasted their money and are still millionaires. They get to be blind, they get to be in denial, to lie to themselves because they can afford to be foolish, they can afford to convince themselves.

This all started with a lie, no matter what way you look at it; Kylie Jenner is/was not a self-made billionaire. It just continued on from there. I am not calling David Rae a liar. I believe he believes in all this stuff, that his clients are self-made, that every choice had contributed to their wealth and solely those choices alone, with no help from chance, luck, and connections. You don't have to be a liar to believe in a lie. Often, it makes it that much easier.

That's why we lie to ourselves; to make things easier.