Today’s Financial Message Just for you, {{ first name | friend}}
We've survived enough decades to know that financial mistakes aren't dramatic explosions - they're slow leaks that sink you over time.
It's the monthly gym membership you never cancelled, the "I'll invest later" that turns into never, the emergency fund you keep meaning to start - someday. We watched our parents make mistakes and swore we'd do better… Continue Reading
Does being wealthy mean buying extravagant wheels? Or is it not worrying about how much they cost in the first place?
What IS 'being wealthy?' How do you know when you get there?
According to the good ol' dictionary, the definition is very simple:
wealth·y - having a great deal of money, resources, or assets; rich.
Being financially comfortable vs. being wealthy is entirely personal. The difference comes down to having enough money to meet your wants and needs vs. having enough to satisfy your wants, needs and desires.
How much does it take to be ‘wealthy’?
According to Gen X and Millennial Americans, being wealthy means a net worth of $2.3 million, up 21% from a 2021 survey ($1.9 million).
But…
2023 median net worth of those aged 45-54 was $247,200
For those aged 55-64, it was $364,500. (CNBC.com)
The gap? Inflation, stalled salaries, the economy, etc. But also? Some people continue to make some pretty lethal financial mistakes on their road to building that net worth - and financial freedom.
If you’d rather be on the road to financial freedom - $2.3 million or not - you need to avoid these critical money mistakes that will keep you from getting ahead.
Mistake #1. Seeking comfort, not freedom.
Comfort is the enemy of abundance - and the most dangerous element of finances.
The entire middle class is built on seeking comfort. Comfort lulls you into taking your foot off the gas, giving you a feeling that you have made it. Eventually, you become complacent - ie. stuck. Your earning potential plateaus, with less significant growth as the years pass.
Mistake #2. Not building knowledge.
Nobody builds wealth without actively seeking out information. Knowing how to convert savings to wealth comes from studying and learning about:
what assets to invest in
how to invest
the characteristics of wealthy people to apply their principles to your life
In other words, the depth of your knowledge determines the probability of your wealth-making success.
Mistake #3. Saving to save.
Money that sits around with no plan always seems to find an emergency to fund.
The wealthy always put their money to work either through investments or by starting a business. By harnessing the power of compound interest, you can increase your savings exponentially and hit your financial milestones faster.
Mistake #4. Not considering your health.
The greatest wealth is your health - and here is another one of the financial mistakes people commonly make.
What's the use of making so much money if you won't be around - or well enough - to enjoy it?
Taking care of your health means you increase your lifespan and the possibility to grow your wealth over time. It also provides opportunity to learn from your earlier mistakes and correct them.
Read the whole article, and all 10 Financial Mistakes👇
Go Deeper
Explore the topic of wealth-building with a few more Wealthy Thinker articles:
The sweet, sweet feeling of paying off debt.
“This Sounds Great, But I Can’t Get Ahead of My Debt.” That mountain seems impossible to climb when you first start out - start small and watch that debt shrink.
Having even one goal to focus on can change the game for you.
“I Don’t Really Have Specific Financial Goals, Other Than Paying For Day to Day.” No time like the present. Having even one financial goal can change your mindset and help you accomplish it faster than with nothing.
“My brain actually DOES feel sharper when I eat breakfast.”
“I Don’t Have Time to Focus on My Finances All Day.” Adopting a few effective morning habits can be all you need to change your mindset and sharpen your focus.
Money Mindset Message
Rocky was getting pretty comfortable before Clubber Lang hit the scene.
Did you know…
That on this day in 1987, the very first Simpson’s episode “Simpsons Roasting on an Open Fire” Premiered. Now, somehow 38 years later it’s still on TV. I’ll let better scholars than I debate whether or not it’s still good…
What did you think of today's newsletter?
*overdraft fees source: https://finhealthnetwork.org/research/overdraft-nsf-fees-bigger-burden-than-previously-estimated/