6 Financial Fantasies

Flipping houses isn’t easy. Focus instead on finding legitimate ways to make extra money and learning to manage what you make.

I’ll receive an inheritance and get rich!

I’ll skip the part about how distasteful I find it that some people are waiting on a relative to die so they don’t have to learn to manage their own finances. Even if your parents or grandparents have some money, there’s a great chance that their money will be used to pay for their end of life health care and final expenses. Add the fact that any inheritance will be split several ways and probably challenged in court if it isn’t divided equally and hopefully you’ll see that waiting on an inheritance to materialize is a pitiful fantasy.

Don’t count on an inheritance. Even if you do receive on, probate will probably cause it to be much smaller than you think

I’ll pick the right stocks and get rich!

Picking stocks is only for experts and unless you plan to study portfolio management and become intensely knowledgeable about a company or an industry. In How A Second Grader Beats Wall Street, author Alan Roth outlined how 95 percent of stock pickers lose money. What should you do? Read the book and invest in broad based ETFs or mutual funds with low fees.

You won’t be able to pick the next winning stock consistently. Sure you may have a success or two, but you need to match the market’s return over the long haul.

I’ll start a blog and get rich!

No you won’t. It will be a minimum of six months before you get your first check and that’s IF you’ve written about 200 articles and managed to get some strong social media support and links from a lot of other bloggers. It isn’t impossible, but it requires much more work that the average dreamer is willing to do. Blogging is hard work and requires research, a web host, the ability to write, edit, and proofread, as well as the ability to generate buzz.

Building a blog or website is a legitimate way to make extra money, but it takes a lot more work that most people think, and much more work than the sellers of books, ebooks, seminars, or “training programs” will ever admit.

I’ll start an eBay business and get rich!

Yep, you can make money on eBay, but probably not the mega millions promised by shady hucksters hawking seminars and DVDs. The fact is that eBay has made the value of many items more readily accessible and as a result, the prices of everything from baseball cards to antiques have dropped. To make money on eBay, you need to be extremely well versed in your product and know its value. The reality is, with shows like American Pickers and the proliferation of online auctions, making serious money has become much more difficult.

Selling a few personal items here and there on eBay is a great way to clean out the attic, but to make serious money by starting an eBay business is more about creating another job than about getting rich quickly and living life in your pajamas.

Photo by St_A_Sh