Tag: net worth

Who Cares About How Much Money You Make?

Who Cares About How Much Money You Make?

ericmilton

I’m going to tell you a classic story of working-class mind set.

It’s the kind of mindset that only cares about how much you make, but never gives a thought to what really matters…their net worth.

My coworker was telling me a story today about someone she knows who is always bragging about how much money she makes. The individual in question earns $80,000 a year, which is a very respectable income that is higher than the national average.

There is one very important caveat, however. The $80,000 is earned from two separate jobs, each paying around $40,000.

This mentality is classic working class thinking, for a few reasons:

1. Her income is not earned by having two careers – it is earned by having two jobs.

You could practice law during the day and teach at a university in the evening – this would be an example of having two careers as opposed to two jobs.

If this person loses one of her two jobs, her income would immediately be cut in half.

2. Bragging to your friends about how much money you make is classless! It’s something working-class people do.

And unfortunately, it’s a symptom of not understanding anything about wealth.

Wealthy people talk about money in terms of net worth – not salary.

I know someone personally that currently earns less than $50,000 a year and has a net worth of $200,000. That may not be on the level of anyone on the Forbes 400…but it’s more than the majority of the country.

The reason someone with such a humble income has a six figure net worth? Ownership.

She purchased two condos years ago when she was doing well, and held on to them while they appreciated in value.

Don’t get me wrong – we all want to generate as much income as possible. But your net worth is the key.

The next time someone brags to you about how much money they make…ask them how much their net worth is!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page. 

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

Think Wealth, Not Wages!

Think Wealth, Not Wages!

ericmilton

 

Good morning.

From the time we are in grade school, we are taught to study hard, and perhaps go to college, so that we can get a good job.

Now, there is nothing wrong with having a job. The majority of Americans will have to work for someone else their entire lives.

However, just because you work for someone else does not mean you cannot build real wealth for you and your family.

Unfortunately, many of us adopt an employee-only mindset that can be very detrimental to your financial future. We tend to only think from the perspective of salary or wages.

Start thinking “ownership of assets”! For that is the only way to create wealth.

I don’t care if you earn $250,000 a year or more – if you don’t think “wealth”, and not just wages, you will never create wealth.

Last week, my investment account made more money in one week than what I earn in two weeks. I made that money in my sleep!

Now I am nowhere close to being wealthy. But I have purchased my ticket, and I’m on the train!

I wish someone had given me this information when I was 20, or even 30. I had to figure this out on my own – and it took me over half a lifetime to do it.

I am a very optimistic person by nature.  I tend to focus on the what could go right rather than what could go wrong.

However, even if I weren’t, I would still believe that there will be a tsunami of wealth created over the next 25 years by investing in the stock market. – more wealth than any other period in history.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)