As an adult, one million dollars is the average “rich” minimum. It’s a struggle to get there. We think the struggle is because of these pesky bills and emergency financial drains. The high cost of living and wage suppression have something to do with it. But, we were also taught wrong. Our financial understanding never matured beyond our childish view of being rich and our parent’s example of hard work. Even in the most subtle and fundamental money mindset, we are focusing on the wrong things. One such fallacy is the relationship between saving and spending.
The opposite of SAVE is not SPEND. The opposite of SAVE is WASTE. The opposite of SPEND is INVEST. As a child, your mindset, your inner voice was trained to say, “Do not spend your money. Save it.” I want you to realize that you must now, for the sake of wealth creation, challenge that inner narration. Split it into two statements more sustainably understanding the relationship between saving and spending. Say to yourself, “Save money. Don’t waste it.” Also say, “Never spend money. Always invest it.”
- TIME: Always purchase based on planned use, never impulse. The only thing that should be purchased in the checkout line is batteries.
- INFORMATION: Get three complete and itemized quotes for work with people you don’t know.
- PEOPLE: Get to know a mechanic, plumber, and roofer. Know a broker, banker (lender), and a realtor.
- INFORMATION: Invest in yourself first. Education and physical tools are primary.
- PEOPLE: Find a millionaire mentor. They don’t have to know they’re your mentor, but it would help. Follow their lead. Ask questions often. Have them review your plans.
- TIME: Set up the next generation with wealth and financial habits. Thinking about yourself only will keep your vision myopic. Consider how your choices now impact your children’s children.