14/08/2020
The Key Difference Between Money and Wealth
Have you ever seen an article about a lottery winner or a famous person suddenly broke and wonder “how can that be?”
The answer is actually quite simple.
Some people just don’t understand what wealth really means.
Too often I hear people say things like, “If I only had that high paying job, I’d be financially free,” or “If I was a millionaire then all my money problems would be solved.”
I have a big problem with statements like these because they assume having lots of money is what leads to financial freedom.
I can tell you, it doesn’t.
In fact, you can have a lot of money and still be poor.
You can have a lot of money and still feel like you’re locked in a jail cell.
Take a look at Mike Tyson.
At one time he was the undisputed heavyweight boxing champion of the world. At the height of his career, he was estimated to have been worth $300 Million.
But, by the end of his career, Mike had filed for bankruptcy owing several million dollars to debt collectors and the IRS.
All the money in the world didn’t bring Mike Tyson peace of mind or financial freedom.
And this isn’t just something only rich people do.
How many stories have you heard of regular people winning tens of million playing the lotto only to wind up broke a few years later?
Most people define financial freedom as having enough money to retire.
According to Charles Schwab, on average, Americans believe they need $1.7 million to retire. The problem is that money will only go so far depending on where you live and what retirement dreams you want to fulfill.
If you think this will take you far - try kicking your feet up on the beaches of Hawaii and see how long that money will last.
Here’s another fun fact for you.
Do you know the #1 fear when it comes to retirement?
If you guessed death, then you’d be wrong.
Forbes did a survey and it turns out only 20% of people are worried about dying vs. 58% of people are worried about running out of money in retirement?
Because of this fear, I believe that’s why most people seek a secure job with a pension or invest heavily into their 401(k).
Chasing after some arbitrary number is not the true meaning of financial freedom.
The problem with that concept is for most people there’s no such thing as enough money.
The reality is that financial freedom is not about how much money you have. Rather, it’s about a change in your mindset.
You have to change your mindset to understand that financial freedom comes from financial intelligence.
When you have financial intelligence, you understand the importance of investing in assets.
I define an “asset” as an investment that puts money in your pocket instead of taking it out.
When you generate enough money from your assets that equal your expenses then you are financially free and have peace of mind.
And when your assets generate MORE money coming into than out…
That’s when the fun really begins.
If you’re interested in learning how to gain your financial freedom, then I would like to introduce you to where we invest and build our assets.
Recharge and get paid got u covered.
“The best time to plant a tree was yesterday. The next best time is today.”
