“Pay check to paycheck; leads to infinite death, let's build that Net Worth.” – Section8Investor
In my last blog, “Never knew the Difference: Income vs. Net worth” I preached the difference between Net Worth and Income and how important it is for you to understand. In this blog I will preach the meaning of building your net worth with better understanding and real life examples. Hopefully, I could persuade you to be on the road of awesomeness, when it comes to you and your finances.
Net Worth, Less Work
Building your Net worth give you the authority to do as you please and not stress as much. Building your net worth will allow you to open many doors for you and your family that are beyond measures. By allowing your net worth to grow you are allowing your brain to signal better brain frequencies, when it comes to creating and owning. A paycheck to paycheck mentality will only have the mindset of next Friday (Payday), or that check that comes in at the end of the month.
When switching from the paycheck mentality you are constantly developing, excelling, and using your brain to find better opportunities for growth. You now understand you are not entitled to go to a job you hate and work until you are 78 years old, from your death bed. You understand the difference of working for money and money working for you. It is better to understand this life value before it is too late. Seriously, best believe if they could work your useless body from the grave, they would because they know you will never understand this vital concept.
Increasing Thy Net worth
There are many wonderful ideas out in this world to significantly increase your net worth. It all starts with you! Your capabilities to strategically plan your next money move. In order to start increasing your wealth you have to eliminate debt off of your list. I firmly believe taking care of your debt is a number 1 factor when trying to build wealth.
“Ex. Tommy makes a 100,000 a year. Tommy likes going out and living lavishly. Tommy spends 89,000 a year on vacations, women, and boats. Tommy now has no source of income because he was laid off from his job. Tommy now has no money and is 300,000 in debt. He also has no capital or real value assets. Tommy is flat broke to square one.”
If tommy followed these simple life secrets of paying debt, living frugal, saving, and investing, – he would be way ahead of the game some years ago. This is why paying debt and not getting sunk in by the impression of impressing people who barely like you is important.
The Secret Stash
One starting point on your way to a bigger and better Net worth is having that “secret stash”. Some call it the emergency fund, life savings, or etc. My best advice for the secret stash is simple, “Out of mind, out of sight”. This allows your money to be debited into your secret account without looking, before you take anything out of your weekly check.
Ex. “Jacob has been making 30,000 a year working for the local school. Jacob is worried the school will have another job layoff so he thinks of great ways to end his spending habits and saving more money. Jacob has an idea and a bright future. Jacob open a “Secret Stash Account and puts away just 10 percent of his income every paycheck. He did so for 15 years passing his income and living stress free. Good to know, the job lay off never came and Jacob was now investing and purchasing his first home.”
One who is living on less than they possibly earn is a “Frugal One”. Being frugal is a great way to build your Net Worth. Keep in mind all your spending buddies will talk down on your practices and try to drag in living overly spending hell. Be cautious and stay true to yourself. If you can’t go out because you are on a budget, then absolutely don’t do it. Remember, a frugal lifestyle doesn’t have to last long.
In order to make a change from your environment when it comes to money you have to adventure out. All advice isn’t good advice, even if it comes from the ones you love and trust. You have to become self – educated and entitled to learning the game and growing. Your Future self will thank you if you stay down. Build your net worth and relax because your stress levels will decrease when you know you money is working in your sleep.
Question: Is your Net Worth important to you? Do you even care about your finances and having full control of your life?