Over the years, I have had the pleasure of speaking to some of the smartest and wealthiest individuals on the planet.
As the Chief Editor of this letter, I am always researching and asking questions regarding wealth. My daily objective is answering one question: how am I going to help you achieve the greatest financial success possible?
Today, I want to discuss financial security and the feeling of wealth.
I’ve tried to explain this to many friends, and honestly, I haven’t had much success, so please bear with me as I share something very near and dear to my heart.
I believe true financial security comes from your understanding of how income is created.
It’s not being debt-free, or having a safe job, a large net-worth, or even having a high income.
Financial security comes from your understanding that in order to generate income, you must over-deliver value to another person.
Zig Ziglar explained it like this: “you can have everything in life you want if you will just help enough other people get what they want.”
True financial security is knowing that you can make money at any time and under any circumstance, because no matter who you are or what you do, your ability to make income is always there. Deliver value to others, and if you want to make more money, deliver more value to more people.
The feeling of wealth is a debate I often find myself in.
The conversation usually goes like this: “But Daniel, why on earth would you pay off a house or a rental property?”
Looking at the math, it makes more sense to let the tenants pay it off, enjoy the tax write-off, or use the cash for another investment.
My answer is yes, the math is right, but that’s not why I pay off rental properties or a personal residence.
Sometimes the higher return on capital is not the higher return on quality of life.
The value of peace of mind can not be entered into a calculator.
This is what I refer to as the feeling of wealth. These are certain luxuries or “stress” protections you place in your life to give you peace of mind.
It’s why as you build up your wealth, never be afraid to make a lower-return decision in order to have a higher return on your feeling of wealth.
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.