If you are getting this message, it is for you. Never being broke again is a philosophy. It is a mindset, and it is a way of life.
The average American handles their money very poorly. They are frequently spending more money than they make ( using credit) to live better than they could. It is a sad state of affairs. Most people are not taught about financial literacy. Most of us are just pushed out of our parent’s homes with a pat on the back and a handshake.
How many of you had mom or dad sit you down and talk about how to handle your money?
Sure some people said save don’t spend.
That is about the gist of it. Here I am going to sit you down and shake you by the ears.
The way you are living is not the best for you,and it will cause long term harm!!! Bankruptcy by the elderly are at an all-time high – https://www.forbes.com/sites/teresaghilarducci/2019/08/15/elderly-bankruptcy-why/#3e76c3f24f51
What is the cause of this?
Lies in the financial industry. If your FICO is high enough, they will slap you into that loan with little regard to how bad that loan is your overall economic health! That is a problem.
The lie of investing
If you have 40 – 60 years and if everything goes as planned, you can get rich in the stock market. That is true. People have done it. However, this does not work for most people because of the financial lies. Plus, many people are in a state of low income. 51% of working Americans don’t make $28,000 per year. Those are struggle wages, my friend.
The first lie anyone can invest even the janitor can become a millionaire. This is one of the most harmful myths. I get people all of the time on YouTube who have $300 to $1000; they want to invest for a good return.
Here is the math on $1000 invested for 50 years –
Your current plan produces $29,457 after 50 years before taxes and inflation.
You got to leave that money in the investment for five decades. Never touch it and never need it to get to $29K. A good side hustle makes that in a year, and you can put that in your pocket.
Investing these small sums produce small returns that take decades to accrue.
Do you have 5 or 6 decades to get wealthy, and….will you be in good enough health to enjoy the money?
Start managing the money you make to the best of your ability.
The first step in the process is a mindset change. Your money is a tool. Money is not power. Money is not endless. Money does not make you a bad person or a good person. Money is a utility. That is it.
Manage your money, or your money will manage you!
The reason most people are broke or close to it is that no one they knew and trusted sat them down to talk about money. People were indoctrinated in the American Credit System right out of high school.
You get in debt before you get your first real job with the expectation to pay this debt with a job you don’t have yet! We are talking about student loans. What is crazy if you asked for the same amount of money to start a business you would be instantly told no.
So the first part of the process is to begin to avoid debt at all costs unless it is good debt. That is when you use borrowed money to buy something that makes more money. This is the only time you will even think about being in debt.
If you are American, this is going to be a tough thing to do. We are taught from birth to get in debt, and everyone is doing it. It is what we call herd mentality, and you don’t want to be a member of this team.
You will become a saver. Each time you get paid, you will take a portion of your money and tuck it away in a savings account. You will do this like clockwork. Building this habit is one of the best things you can do for your life and business.
The next thing you will do is adopt a make more money attitude whenever you want something; you will figure out how to make money to get it versus buying it on credit.
You will never finance a car. Buying cars on credit can delay or eliminate your ability to retire. That is how much money you lose by financing cars!!! You want to drive a car you can pay cash for before your drive it!
You will live within your means. What I am saying is if you are making minimum wage, you will not be living in a luxury apartment. You will not be driving a luxury car; you can’t buy luxury items your money is dictating your life.
You are going to always have a side hustle in conjunction with your job. Yes, you will be a busy little beaver. Many people are trying to live their best life possible by making the least effort as possible. That way is going to make your life suck. You want more, do more!
By living in your means, making more money, and having a savings account, you will never be broke again in LIFE. These small tweaks will yield big dividends!