Fri 1 Jun 2007
Top 10 Excuses Why You Aren’t Getting Rich – #1 I’m Afraid.
Posted by RichSlick under Excuses
[3] Comments
The most often heard excuse I’ve heard over the years for peers not getting rich can be encompassed with just two words, “I’m Afraid.” It’s fairly simple and straight forward and I can say I’ve seen this over and over with peers in my personal life and currently in the at large PF Blog world recently.
There are so many people that won’t touch credit card arbitrage because they deem it too “risky.” Come on guys, how “risky” can something be when you borrow money and stick it in a high yield account and pay it back slowly? This isn’t rocket science it’s an opportunity to earn money.
Then a ton of people won’t ever learn to invest in anything other than mutual funds because they consider everything else too “risky” or too “difficult” to learn. I’ve had several people tell me that they consider ETF Covered Call writing too exotic. Good grief, it’s the most conservative trading methodologies with regards to options and people consider it too risky.
It all boils down to the fear factor and herd mentality. To quote a great thinker, Bertrand Russell, “Collective fear stimulates herd instinct, and tends to produce ferocity toward those who are not regarded as members of the herd.”
Over the years, I’ve tried to help many people advance in their careers by mentoring and offering advice; I’ve tried to teach people how to make money yet often, the advice is disregarded because of fear and herd mentality. If the herd isn’t doing it then it must not be effective or probably too risky.
I hope you enjoyed reading the top 10 excuses I’ve heard over the past decade as to why people I know aren’t getting rich. I’ll leave you with one last quote; It was Marie Curie that said, “Nothing in life is to be feared. It is only to be understood.”
Don’t you think it’s time you began to understand how I’m getting rich slick with ETF Covered Calls? I’ve made over $10,000 with the ETF Covered Calls so far and I’m on my way to making another $10,000 this year. I hope you’ll conquer your fear and check it out.
You nailed me right on the head.
I’m [basically] afraid to do crdit card arbitrage. There is that and the fact that the process at least seems to much trouble. You have to hunt down good deals, get the account, arrange the monthly payments. If you slip up anywhere along the way, you are screwed out of probably all of your savings. Now that my car insurance is based on my credit report, that is 1 more reason to avoid having a crdit card account that is maxed out on it. Sure, I could get $500 a year for this. But yes, I think it is too risky.
I do thing ETF covered calls are ‘exotic’. I just find it too risky and I would worry too much about what would happen with them. Sure, I fully admit that much of my problem is that I don’t know much about them. I just can’t bring myself to even trying it. I imagine, though, that making money on these is either because you are fiding the greater fool or you are leveraging a greater impact of a growing market. I imagine that I would be the greater fool if I got in to this.
Yes, I have all my retirement savings in mutual funds. I don’t see anything wrong with that. They are fairly aggressive funds and I get great returns (17%+ annualized over the past 4 years). I don’t have to think about it. They just sit there and accumulate.
I’m afraid… oh well. I’ll still be rich 🙂
0% balance transfers are not a no-consequences proposition. I may give it a try (mind if I email you with questions?), but you have to know going in that:
1. Your credit score will be damaged, and that
2. Having a lower credit score can actually cause your car insurance rates to go up
The fear doesn’t stop at credit card arbitrage or ETF Covered Calls, it goes on with real estate investment (flipping), starting a small business, or following any other passion for profit.
I have no problem with anyone deciding that they want to stick with mutual funds or their “secure” job. I have a problem when these same people complain about others making “too much” money then decided via electorate to “tax the rich” because they don’t “deserve” all that wealth.
People that take higher risks receive higher rewards and that’s how I’m getting rich.