Current Thoughts
| I recently heard the statement “Few people can both look and be rich.” Essentially building wealth is a process of living below your means, budgeting, choosing to invest in appreciating assets vs depreciating assets, understanding leverage and having an intelligent investment strategy. This process is antithetical to the process of “looking rich” which typically looks like living at or above your means, consumer debt, and poor purchasing decisions that prioritize what you want today vs what you want or actually need in the future. The biggest difference between the two is having margin, buffer, safety, options. Think of the difference between an $80,000 truck with a $1300 a month payment vs a $20,000 paid off truck with $60,000 in an investment account. One is an asset, the other a liability. One produces cash flow, the other reduces it. What happens in an emergency? It is not a coincidence that both consumer debt and obesity are at all time highs. As a culture, we prioritize today over tomorrow. We live on thin margins, with no buffer and limited options in both our physical health and our financial health. It works for a little while, we can fool our neighbors and, more importantly, fool ourselves, but at some point an emergency is going to happen. Then what? The process for physical wealth is the same as financial wealth: you need a strategy, daily habits, accountability, and a method for tracking progress. You can have what you want today or you can have what you want most? Which are you aiming for? |
Things I like
| You don’t have anxiety, you are experiencing it. It’s an alarm your body is sending out because your house is on fire. You can try to quiet the alarm but would it be better to deal with the fire instead? |
Things to Check out
https://www.instagram.com/p/DQ68vw4gGba
Have a great week!
David
