Is Money Running Through a Hole in Your Pocket or Are You Building Wealth?

Sometimes it’s hard for people to understand that they have more control over their wealth – andhow much they do or don’t have – than they realize. It’s all about priorities and how you think.

It’s likely more than $1 million dollars will run through your fingers over your lifetime. For some high earners,that will be many millions of dollars. How well are you stewarding it to invest in yourself, build more wealth,  and have the financial freedom you want?

Some people buy new cars every 3 years. Some people own a lot of toys like motorcycles, RV’s, expensive bikes and sports equipment, three wheelers, boats, jet skiis, etc. Then there are the dozens of designer handbags that are collected like trophies, but don’t get used.

I’m not saying you can’t have some of these things. But when your life is filled with so much “stuff”, it really doesn’t add much to your life and it takes away the opportunity that the money could be working for you if you had invested it properly – and knew where to invest it or, as important, where NOT to.

The stock market has had the worst performance of any decade ever during the last decade. Real estate is coming out of a bubble and bubbles rarely re-inflate or go back to their previous highs. They take years and years to unwind. I don’t think the stock market, bonds, or real estate are the places to build wealth now.

But gold has increased 17% a year for 12 years in a row. If you’ve been following me for a while, you know why it has and why it’s likely to go a lot higher — due to cycles, money printing, inflation, and government spending.

How would it impact your wealth if you had invested money in gold instead of more toys?

Let’s say for one year you didn’t buy toys and you invested in gold.

Here’s what $10,000 would have grown to:

$65,800 in 12 years!

Now let’s say you took $40,000 you might have spent on a car and you kept the one you have for 12 or more years (yes, if you don’t drive a huge amount, it’s very possible).

Forty thousand dollars invested at 17% would have grown to: $263,202 in 12 years! That’s a lot of coin.

The more toys you buy, the more you are a slave to continue to work and pay off your bills. The money is sitting idle in the toys and it could be working for you, with frankly little sacrifice on your part because most people don’t even  miss “stuff.”

Instead of toys, I recommend that you invest in experiences (like travel), education, or a business. These are things that really add to your life and don’t just create clutter. When you lose a loved one, you will more likely remember the time you spent together, where you traveled to, and the experiences you had together. It won’t be about the toys you used once and then left in the garage to collect dust.

For more expansive thinking, join us at the Be Wealthy & Smart Intensive: Secrets to Make Money and Become Wealthy on Purpose!  There are only a few seats left! Because you are on my newsletter list, you’re able to attend for $498.50 and bring a spouse for $197. Simply enter “WEALTHY50” in the box at checkout and click ‘apply’ at http://lindapjones.com/wealthyonpurpose.

Understanding ideas like Opportunity Cost can make a huge difference and might even determine if you remain a slave to  money or if you become financially free. Which will it be?

 

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