Accumulating wealth is super simple: spend less than you make. Yes, that is simple.
So if it is so easy then why do most Americans have under $1,000 in savings? Wait, what?! Most Americans have under $1,000 in savings!? I found that by way of a Marketwatch.com article that referenced this article: 62% of Americans Have Under $1,000 in Savings, Survey Finds
The answer why few people have savings is easy: because it is hard.
Just because something is simple, does not mean it is easy.
A lot of people know that doctors make a lot of money. If you want to have a high earning job, well, that’s simple, just become a doctor! Duh! Except, as most current business majors will tell you, becoming a doctor is hard. It takes a lot of study, discipline, sacrifice, and determination. Not too mention years and thousands and thousands of dollars to invest in education. Then once you actually become a doctor don’t forget that the average debt is over $165,000!
Another example is if you want to be super rich, just become a famous movie star. Then, boom! You’ll be super rich (and famous!) Perfect, glad we made that decision together, let’s do it! Get Cribs on speed-dial and I’ll pull all of my Whips out on the driveway. Except as any server or bartender in LA can tell you, it isn’t easy. You have to go to casting call after casting call, sacrifice job after job because you have to keep waiting for any acting gig at all. You have to spend huge money to live in the city so that you can be available for the casting calls, you probably have to go to acting school to be a professional. It’s super super hard to break into that industry.
You may be thinking, of course, any dummy knows both of those things are simple but hard, what about me and my situation?
The average American household is just over $51,000. It is simple to just say, only spend $40,000 a year, save $11,000 invest it with a 10% annual return for 40 years and boom: $5,000,000+ net worth! Except you try running a household on $40k a year! That’s hard!
That brings up 2 immediate thoughts:
The first is that you cannot, under any circumstances, judge external appearance with financial wellness. Most all people put their very best foot forward out in public (especially on social media) while on the inside they are screaming for help, buried in debt, with a negative net worth.
The second is that there are others who look very average but are very comfortable financially. (I have a lot of thoughts on this topic as it is very important when it comes to financial wellness).
Mindset matters when it comes to finances. As one of my mentors says often, “it is ALL a game” and finances are no exception. You hear about professional athletes being in a slump and saying that it is a mental issue. The same when it comes to how you think about money. Together we will be discovering a lot about money and there are many, many things to talk about.
The truth about money revealed. Surely that is a book that exists… Ok, well a book with that exact title doesn’t exist. Maybe I should write it. Stay tuned for all of the exciting things to talk about.
Financial Wellness is more than just regular personal financial information. I want to speak with you, one on one, with an edge. An honest tone that says I care too much dammit to whitewash.