I read the following CNBC headline this past week and was floored, but only for a second because that’s about as long as it took me to realize why:
“63% of Americans are living paycheck to paycheck, including nearly ½ of 6-figure income earners”
The cost of living has increased tenfold over the past year or so.
And regardless of your income, your cost of living has well outpaced it…
Even for 6-figure income earners.
You might think to yourself, 6 figures is A LOT of money, and you’d be right.
It is A LOT of money.
But here’s why someone who should be “wealthy” ends up walking the line of poverty even while earning 6 figures:
The very first thing most folks do as their income increases over the years is increase their lifestyle right along with it, or even a little faster.
Yep … bigger home, second home, fancier vehicles in the driveway, designer clothes in the closet, a Rolex on their wrists …
The list goes on and on!
Now, don’t get me wrong. All of those things are nice to have, and a better lifestyle never made anyone depressed (at least I don’t think it has).
But the problem comes along when the lifestyle is increased more aggressively than the long-term plan is being financed.
Life is about the “long game” — meaning every choice made has to be under the premise of: what if I live to 100, beyond my life expectancy?
Will I have enough money to sustain the quality of life I desire to live until the day the good Lord calls me home?
If I haven’t answered that question with a resounding YES (and then some), I’m living beyond my means and failing to plan as I should be.
Some of you might live along the lines of “I only live once,” and you’re right. You only get one shot at this … screwing it up is NOT an option.
It’s not about impressing your family, friends or neighbors. It’s about having stability. Living a life that makes you proud when you look back on it.
Achieving this comes with very difficult choices. It doesn’t matter if your household brings in $50K a year or $1M a year.
Choosing to live beneath your means is a choice, one that anyone can choose to do with a little discipline.
A tale of 2 siblings: The older, attractive and successful daughter graduated from an Ivy League college and went on to earn hundreds of thousands of dollars annually but doesn’t have a pot to piss in. While the younger brother, a bit socially awkward, worked 2 blue collar jobs his whole life and has tens of thousands of dollars squirreled away for a rainy day.
You have to decide who you’re going to be. At the end of the day, we must all live with the choices we make. The quality of our lives depend on it!
I operate my life, my businesses and my trading along the mindset of the “long game” — if you’re focused on the same and would like to join me on my journey of helping as many folks as humanly possible, simply click here and discover how I make it possible . . .