Dear FutureMoneyTrends.com Member,
Making the accumulation of financial assets a priority is something that is very healthy to desire. Our world has become so materialistic and confused on what real wealth is, it’s almost bad to admit that you want to become wealthy.
It’s awkward talking about money to most people and it is certainly weird to say that you are planning on becoming rich. For most, it’s just a pipe dream and even if they did find themselves with a lot of money, they would still be poor.
In my own life, I know many high-income earners who are broke; living paycheck to paycheck: engulfed in payments, mortgage payments, taxes, credit card interest and a long list of luxury items. This is NOT rich, and it is the opposite of being wealthy.
Financial wealth should give you options, free up your time and allow you to focus on the things that truly matter in your life: quality time with loved ones, leisure, long vacations and participating in fun activities.
One of the biggest death traps to you becoming truly financially wealthy is your home. Americans have been conditioned into believing that the 3-decade-long loan is normal and that upgrading every 5 years is also “normal.” Not moving and owning your home outright are two decisions that will help you become wealthy.
Countless high-income earners buy these big luxury mansions and file for bankruptcy when the income slows down. For the middle class, it’s the life-long mortgage payment. Even upgrading twice, say once in their 30ʼs and 40ʼs, puts them in a situation where they are paying interest for 4 to 5 decades.
Remember, your house is in the asset column of your banker when you have a mortgage. If you honestly think the house is yours, try not paying the mortgage for a few months. Getting in control of your home expenses and automobile purchases will help clear the way to your financial independence.
Plan on owning your vehicles for 10 years and if you want to drive a luxury car, consider buying a used one. Just out of curiosity, I did a quick search for a BMW 7 Series. The MSRP starts at $75,000 for a 2014. However, for the same exact luxury, I can buy a 2012 for $40,000 at my local CarMax, That’s a $35,000 savings.
For those of you reading this that are young, I want to give you a special message from my own life experience.
“Your time is finite, so don’t waste it doing things you don’t enjoy.”
No one, and I mean no one on their death bed is reminiscing about the traffic they sat in heading to work, or the double-shifts they pulled, or the nice car they drove. I suggest you build real financial wealth so that you have the option to enjoy doing all the things that you will value in your last days, like: enjoying a hobby with your children, teaching them or learning together, and of course just enjoying quality time.
Have a prosperous week!