Let’s get right to it. Here’s question one: Are you building wealth?
If you answered, ‘yes,’ good for you! Now, let’s get a little more specific… Are you building enough wealth to afford the lifestyle and independence you want until the end of your life?
If you’re like many Americans, you can’t answer that question for two reasons. First, you haven’t calculated how much wealth you’ll need. And second, you don’t know if you’re saving enough now. Have you run the numbers on your 401(k)? You might be shocked at how fast it might run out in retirement. What about Social Security? Any clue how much that will add up to? If your future financial security hinges on these two income sources, you might freak when you realize how little you’ll have to live on each month.
61% of Americans across all ages fear running out of money in retirement.¹ And it’s no wonder! We’re living longer than ever, meaning we need enough savings and passive income to last what could be 20 years (or more).² Being able to jazzercise and waterski with the grandkids at 75 is great—unless you’re broke.
Rather than thinking like a sucker and assuming you’ll somehow have enough for the future, it’s time to start thinking like the wealthy. They don’t put their heads in the sand and “hope it all works out”. Money—to them—isn’t anything to be ignored. They learn everything they can about how it works and start developing strategies to make it last. To the wealthy, money is not boring, mysterious, scary, or frustrating. They consider the lifestyle they want and then backwards engineer how to get there, by making money work for them.
To the wealthy, money equals possibilities, goals, gifts, and solutions to problems. Once they have the knowledge, they do everything they can to take control of their future. Money becomes wealth.
But if you don’t know how money works, your money can also become… someone else’s wealth.
Here’s question number two: How do you think about money? Do you think about money like a sucker? Or like the wealthy? It’s not a criticism. It’s a choice.
If money still seems mysterious, confusing or intimidating to you, take these two steps immediately…
Read the book, “HowMoneyWorks, Stop Being a Sucker.” (You can contact me to get a copy.) Then, sit down with a financial professional and find the answer to question one, “are you building enough wealth to afford the lifestyle and independence you want until the end of your life?”
¹ “Reclaiming the Future,” Allianz, https://www.allianzlife.com/-/media/files/allianz/documents/ent_991_n.pdf
² “How Long Will Your Retirement Really Last?,” Simon Moore, Forbes, Apr 24, 2018, (https://www.forbes.com/sites/simonmoore/2018/04/24/how-long-will-your-retirement-last/#5b6be5c77472)