What do you value?
Do you want to become wealthy? Actually, let’s start easier, are you able to pay all of your bills? Can you basically buy any random everyday item and not have to shuffle money around accounts? Are you saving and investing while you’re doing this?
If you answered no to any of these, you and I have been in the same financial space, but I’m out of it, and if you’re not, let’s talk about how you can be.
Rich vs Wealthy
For years, I used the terms wealth and rich interchangeably because I didn’t understand the true concept of each. But sometime around my mid 20s, I read the book, “The Millionaire Next Door” and it fundamentally changed me.
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When we see someone flaunting money, having luxury cars, items, clothes, etc, those individuals are “debatably” rich. They have the funds (or at least the credit) to buy those things. Here’s the thing though, the only way you know someone is rich is by seeing all the stuff they buy or own.
Wealth (on the other hand) is hidden. How could you tell, just by looking at someone, that they’ve got a million bucks in their 401K? Or they own 5 rental properties out of state? You can’t, and that’s the beauty of wealth.
You see, being rich comes with the societal pressure of “keeping up” with everyone else who is rich, but wealth, being relatively unseen, provides a more peaceful existence. When I was younger, I innately felt the need to show off what I was able to own to my friends, to my family, to my coworkers. It was as if I needed them to see that money wasn’t wasted sending me to a good college or working a good job.
As I build my wealth now though, I love the anonymity of it. I drive a 10 year old car. I live in a modest condo. My phone is 5 years old. I almost wear all of these things as a badge of honor because I know what it really means. I know that every dollar that I saved not having spent any more on those things, are dollars I’ve been able to invest for my future.
Mindset Change
I won’t sit here and tell you I got this overnight. In truth, it took a couple of years, so if you’re just starting to understand richness and wealth, don’t feel like you’ve got to make every single change today. Pace yourself.
The biggest mental change I made was to ask myself “why do I want to become wealthy? What do I want my money to do for me?”
This was an easy answer for me. I love to travel, and in a perfect world, my money would allow me to always be gone adventuring. So how can I do this? How can I set myself up for success with this?
You should ask yourself the same question. If you could do anything without having to worry about working to pay for it, what would it be? Then it’s about working backwards on how to get there.
What do you value?
Making a goal to become wealthy inherently forces you to ask this question. Here’s the reason why:
In the pursuit of wealth, you have to prioritize aggressively.
If you’ve decided you want to buy a lake house and fish all day every day, then what you’re saying no to is a new phone every single year, a new car when you get a raise, or drinks at the bar every football Sunday. You’re saying no to these things so you can save up for that land and that house.
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Wealth requires sacrifice, and most who try to get around that will find themselves stranded. Don’t fall for those get rich quick schemes. If you try to get wealthy without truly working your way toward it, the risk that you lose it all is astronomical.
Now listen, I’m not saying you can’t enjoy your life now. What I am saying is that most of us aren’t born into money, so we’ve got to be realistic.
Wealth is built on the gap.
The gap is the difference between what you make and what you save and invest. The larger this gap, the quicker you build wealth. Making decisions around this gap is where what you value comes in.
Have drinks with the boys for football Sunday, just don’t do it EVERY Sunday. Go out on that awesome vacation with the girls once a year, but make all your other vacations long weekend trips where you can save more.
Life’s too short for you to live like a miser right now, but understand that it’s long enough that you need to plan for your future self.
Spending is fun, for sure, but wealth…wealth is self care.
