What’s your personal finance strategy? If you asked me a few years ago, I would probably laugh it off: “I’ll leave that for tomorrow.”
Dumb move. If you don’t have a personal finance strategy, there’s a chance you will never get wealthy. The average millennial earns $40-$50K a year and has $20-$40K in student debt.
But the high achieving millennial earns up to 7X more than the average. The same is true for people of all ages. The difference between average earners and above-earners is huge.
Once I realized that, I got serious about money. But I didn’t focus on making more money—a mistake that many of us make. We always think more cash is the solution to everything.
“All my problems will be solved once I have a little bit more cash on hand.” Sorry to disappoint you, but that will never happen. As your bank account grows, your problems will too.
Money doesn’t make you happy. And yet, we need it to live. So what do we do? Try hard to make more money? Or, be content with what we have?
The problem is that both options come with high costs.
We’ve all heard about the research that says you won’t be happier if you earn more than $75K or some other magic figure.
We’ve all heard about these studies by now. And yet, it doesn’t make a bit of impact on the way we live.
At least, those findings never changed the way I chased money in my life. And neither did it change anyone I personally know.
The problem with these averages is that they are averages. And yet, mindless writers keep quoting this research that says money doesn’t make you happy.
I’m not hungry for money. Compared to several years ago, when I had less money, I still have the same life.
I wake up, drink my freshly brewed coffee, read a good book, and then start working until about 3 or 4 in the afternoon. Then, I put on my shorts and t-shirt and start working out.
Sometimes I listen to music during my workouts, and sometimes I don’t. After working out, I have dinner with my family. We watch a TV show or movie after we eat. And then, I get back to working or reading.
You see, it doesn’t take much money to live a good life. Benjamin Graham, one of the most respected investors of all time, once told his apprentice:
“Money isn’t making that much difference in how you and I live. We’re both going down to the cafeteria for lunch and working every day and having a good time. So don’t worry about money, because it won’t make much difference in how you live.”