Who Cares About How Much Money You Make?

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.)

 

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The $500 Fortune, Part 2

Yesterday, I listed some stocks that, had you invested $500 in them years back and held, would have increased your wealth exponentially.  Of course, I was then asked, “What stocks can I do that with today?”  Here is a list of five that I like:

  1. Tencent: In case you didn’t know this, China is the most populous country in the world.  They will soon have a middle class that consists of 500 million people.  It makes a great deal of sense to have some exposure to China in your investment portfolio, and one of the best ways – if not THE best way – is thru owning shares of the largest video gaming company in the world!  Tencent is already a big company, worth half a trillion dollars.  I think that it has the possibility to one day be worth multiple trillions of dollars.  I firmly believe that this company can make you rich!
  2. The Trade Desk is a small digital advertising company with a market value of $1.4 billion.  Trade Desk uses artificial intelligence (AI) to aggregate and analyze data from different websites in order to help companies improve their marketing.
  3. Match: My selection of Match.com may surprise some people…however, did you know that Match owns Tinder, OKCupid, and Plentyoffish?  Tinder is the third highest grossing app in Apple’s App Store, behind Pandora and Netflix.  The truth of the matter is online dating has been a huge trend and will continue in the future.
  4. Activision Blizzard: It may be hard for non-gamers to believe this, but the gaming industry is HUMONGOUS.  One of the major players is Activision Blizzard.  Although the company has been one of the best investments over the last 20 years, the next 20 years look absolutely just as bright!  Esports, which are organized video game tournaments, are on track to be an absolutely colossal moneymaker for Activision Blizzard.
  5. Roku is a small company with a market value of under a billion dollars.  Roku is the fastest growing streaming platform in the United States.  Streaming video on demand is obviously the direction the world is moving toward, as evidenced by the phenomenal success of Netflix.  Roku has the platform that could eventually make it the dominant streaming video company.

If you’re just getting started or you’re looking to add to your portfolio, these five companies are ones you may want to watch!

If you haven’t checked out my ebook yet, head over to Amazon.  And please, please, share your thoughts and questions in the comments!

 

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.)