Stop Focusing on Getting Rich
You, want to be rich right? You want to make more money? You want to be able to buy more of the things you want and live the lifestyle you want, right?
What if i told you, you were focused on the wrong thing.
You, probably like most people, are focused on getting "rich," But, if you really want have everything you want, you need to be focused on getting "wealthy." This is a major distinction.
Most people measure their wealth by how much they make. If they have a huge paycheck and make a lot of money, they think they are rich or wealthy. Being wealthy is not about how much you make, but about how much you keep.
Wealth, simply put, is the amount of days you can live without having to work. For example, if your bills are $5000/mo and you have $10,000 in the bank, you are 2 months' wealthy. Most people that make a lot of money are not wealthy. They are rich because they make a lot. But, they also spend a lot. In fact, if a lot of these people lost their primary source of income, they couldn't through a month at their level of lifestyle.
If you really want to have what you want, you need to change your focus from getting rich, to getting wealthy. Part of that is understanding that getting a big W2 paycheck is the worst way to make your money because it is the highest taxed form of money. The wealthy know this. That is why Warren Buffett says he pays less taxes than his secretary - because on a percentage basis, he does. His money is made from dividends, capital gains, and distributions from his businesses, which are all taxed at lower rates than the W2 income tax rates. Remember, it's not how much you make, it's how much you keep that matters.
Additionally, the wealthy have their money work for them in the form of assets such as business ownership, real estate, and investments. This helps to ensure that they remain wealthy and never outspend their ability to be wealthy. For example, if you have 10 rental properties that pay you $1000/mo each after expenses and your personal monthly bills are $7500, you are effectively infinitely wealthy.
How about you? Can you see the difference between being rich and being wealthy? Can you think of a change you need to make in the way you approach money that will help you begin to build wealth? Maybe you can set a goal to be so many days' or months' wealthy by a certain date.
Whatever you do, focus on being wealthy, not being rich!
Leave a Reply.
Click Below to Join Misfit Nation and Get Your Free Copy of "The Top 10 Lessons to Thrive and Succeed!"
Follow Misfit on Twitter!