It’s not how much money you earn that counts, but how much money you keep. Furthermore, how does that money give you a return? Financial literacy is an underexposed topic within the middle income market. Families earn money, but lack money management skills. In my experience, families spend more than they make because of 1. Impulsivity 2. Living beyond their means, consuming more of what depreciates 3. Unadvised in terms of financial concepts.
What have you been taught about money? What do you do with your paycheck once it deposits into your account? What is your net worth? Do you have a will? Does your love one(s) or a charity serve as your beneficiaries? How advantageous would it be if your parents taught and left you a financial legacy? Think about it, if one generation has been educated on a subject matter, how wise would it be to influence the next generation? It is the same as a parent attending college and expecting the same from their child. The parent understands the benefit and the foundation that will help build a healthy and wholesome present and future. When you know better, you do better. When you learn more, you’re more empowered to possess more and you are able to bless more. No matter if it’s your children’s children or by supporting causes that you deem important. Frequently I say, meetings would not be so long if someone could write the check. Transformational giving cannot happen if transformational wealth is not being invested and passed through the generations.
Think about this, if you died last week, would your family’s quality of life be the same, better or worse? Would your family have to sell their home? Would your children have to stop attending private school? Would your son be able to continue enrichment programs and sports? Would your daughter be able to attend sleep away camp? Would you have to secure a couple more jobs? Additionally, investing the way you are investing now, are you on track to retire? How much money do you need in order to do so? In other words, what is your financial independence number? Do you understand the meaning of a portfolio? Where do you get your advice from? Do you deem it necessary to gain accurate knowledge from a skilled and licensed professional? Is this important to you? Is it an urgency?
Learn how to build a financial house beginning with an education and attaining an understanding, followed by implementing the concepts. Procrastination is the thief of progress. My mom used to always say, study long and you study wrong. What does that mean? My interpretation is if you think about something so long, you will illogically and irrationally talk yourself out of something that is necessary, yet unfamiliar to you. It is similar to relocating to a foreign country. Well, it’s a culture shock. You’re unfamiliar and you understand the benefit, but uncomfortable with the process. You have to study the country and language, trust the process, walk by faith, talk to trusted natives, do it afraid. I encourage you to wise up when it comes to building your financial home. Your children do what you do, not always what you say. Once money is earned from working hard and smart, teach yourself and them how to respect money. I know you have been taught to YOLO and that you cannot take it with you. If there is a substantial amount you can take it with you. Take it with you to your next generation. Talk about leaving a legacy! Your grandchildren will forever speak your name. Because of your heart and hope for their present and future. Wise up! Gain a financial education. Talk to a licensed professional. Read wealth building books. You will thank me once you do.