You want to be a millionaire? Why think so small?
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Being a millionaire will not guarantee you financial wealth. Let’s define the difference between million and millionaire:
1. The number million is not some impossibly big, idealistic number. If you think of it as just one thousand times one thousand, it becomes more tangible. A million dollars worth in $100 bills weigh only 22 pounds.
2. A millionaire is not someone who makes a million dollars a year. It’s when your net worth, or total value, of all your assets minus the total weight of all your debt is at least a million dollars.
3. Having a million dollars of net worth says nothing about your income. Wealth is measured by the amount of time that your passive monthly income can support your lifestyle if you stopped working today. Maybe your current wealth is one week. Maybe it’s 7.5 years.
Its this simple, being a millionaire is not special anymore. Currently, one in ten U.S. households are inhabited by a millionaire. The preferred car of a millionaire in America? A Ford. When I passed the millionaire mark a while ago, it did not impact my life in a big way, not even in a small way. It didn’t matter to me. If you are a millionaire already you probably understand me.
Years ago, being a millionaire had a connotation that you were extremely wealthy. Millionaires did not have to worry about finances ever again and were able to retire early. In present day, millionaires have to work until retirement.
To this day there are still marketers and sales people that sell courses using the word “millionaire,” because billionaire seems so unreachable. Everyday consumers still have this antiquated way of thinking about money. The word “millionaire” is not a wealth maker anymore.
If you consider the dollar’s diminished purchasing power over time, it’s going to get even worse for millionaires. For a beginning typical working career, a million dollars today will only be worth about $275,000 to $325,000 at the end of your career once inflation is factored in. Your $300K will not provide enough in your retirement. I may give you maybe two good years or six lean years? Your money will evaporate quickly.
When your financial advisor tells you to invest in a 401k, which is typically a losing plan, they will virtually guarantee that you’ll be a millionaire. When that happens you’ll know that no longer sounds attractive. You won’t want to be a millionaire, you’ll want to be financially free. Ask your 401k plan’s advisor this: “Why would I wait until I’m in my 60s to create a stream of passive income when I can start doing it now?”
Think bigger. Invest in leveraged, cash-flowing assets like real estate that provide a monthly income stream now. I tell you how every week on my free podcast. Carefully-purchased, leveraged assets typically appreciate faster than 401Ks. The latter relies on the myth that compound interest alone will create wealth. It doesn’t. With an asset that provides both an income stream and leverage, you’ll have the ability to live well both now and in retirement.
I don’t want you to be a millionaire. I would rather that you be wealthy.
The post Don’t be a Millionaire, be Wealthy – Keith Weinhold appeared first on Grant Cardone TV.