11 Myths About Personal Wealth You Shouldn't Believe

11 Myths About Personal Wealth You Shouldn't Believe

 By   Forbes Finance Council

Successful accounting, financial planning & wealth management executives from Forbes Finance Council share trends and tips.

For many people, a long-term goal is to amass and maintain personal wealth for financial security. There are many different paths to get there -- savings, investments, passive income, etc. -- and there are plenty of "rags to riches" success stories to inspire people's financial aspirations. But there are also many myths about wealth that color the perceptions of those who wish to attain it.

We asked a panel of Forbes Finance Council members about the biggest and most common misconceptions about personal wealth and the important correct information individuals should have instead. Their best answers are below.

Members discuss common myths surrounding wealth management.

1. Your salary doesn't matter; true wealth is living off passive income.

Most people believe personal wealth is what you make each year. However, it's not what you make but what you keep and how you use those savings. Real personal wealth is having passive income that exceeds your expenses. Buy income-generating assets with savings.

True wealth is the piece of mind knowing your living expenses are covered by the passive income you generate no matter your job status. - David Gass, Anderson Business Advisors, LLC

2. Knowledge isn't enough to build wealth; you have to put it into action.

The biggest misconception for many people is procrastination. Personal wealth isn't all about knowing what and how. You can know what to do and how to do it, but as long as you delay, you are forfeiting wealth-building. Start saving. Start learning. Start paying off your debt. Just start. - Justin Goodbread, Heritage Investors

3. Your paycheck doesn't make you wealthy; you have to learn how to save.

Saving more money than you spend will make you personally wealthy. Would you believe there are people who make $40,000 a year who have $1 million saved for retirement, yet there are people who make $500,000 a year who can't figure out how to save a dollar?

Don't worry about what others have. Stay true to yourself, focus on your values and priorities, and live a meaningful life. - Alexander Koury, Values Quest

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