The difference between wealthy people and non-wealthy people comes down to a small set of habits anyone can embrace themselves. There is no special trick or secret. Wealthy people do things the average person does not. Super wealthy people like Elon Musk, Bill Gates, and Steve Jobs share the same wealth-building habits with a bit of luck to give them a push. The great news is you can be rich, too! No promises on the super-rich thing, but you can be a millionaire if you choose.
There is an advantage for people like me working in accounting. I see people from all walks of life and their true level of wealth. Over time it becomes apparent how their habits reflect in the level of wealth and quality of lifestyle they have. We stand in awe and envy when we see people retiring at age 30 or 40, and rather than learn their habits, we seek to tear down their success. The only difference between people who retire early and those finding a comfortable retirement at 65 is how soon the wealth building habits are learned. Here are the five things I see rich clients do on a regular basis and non-wealthy clients frequently do not. Not only do the wealthy have these habits, they exercise them daily.Read More
Life started poor in my household. No grand inheritance (no inheritance, period) to give me a lift off into adulthood. Sheer hard work, determination, and persistence led to gradual wealth accumulation. Soon the numbers started to grow. Money started pouring in faster than my young mind could imagine. The stock market was on fire so my investments made me dizzy and scared it might crash (it did in 1987). I had to protect my future by diversifying into alternative investments since the stock market was so high.
My dad is a gun nut and loves going to gun auctions. Somewhere around 1990 he convinced me to join him. He encouraged me to buy a gun. Personally, I don’t care for guns. I have no problem with you owning a gun; I just don’t feel a compelling need to own a firearm myself. He kept pressing the issue. A gun is useful against marauding hoards, the government, and the impending apocalypse. I still stood my ground.Read More
A couple of weeks ago the police started calling. It started with my cell phone which is unusual. Anyone who knows me knows I never answer my cell phone; I actually keep it on mute most of the time. Calls from my phone generally are from my youngest daughter, Mrs. Accountant, or Tabatha at the office. The best way to reach me for business matters is by calling the office and speaking with Karen; for personal matters call Mrs. Accountant. By calling me directly you will not get through. Yes, I write a blog, but I have also weaned myself from most modern instant communication stuff. I think it is unhealthy to be tuned in and turned on non-stop.
The police are a persistent bunch. The officer calling left several messages. It was important. He had to speak with me and only me, but would not indicate what it was about. I ignored the calls; I knew what it was about. Then he moved on to the office and started leaving messages there. I’ve been down this road before. When a police officer calls outside his jurisdiction something is up and it is less than honest. The police from a small town in a different county do not call for “official” business with only a vague “important” message.Read More
I have noticed a trend involving wealth building that is all wrong. I see it in comments on other personal finance blogs a lot lately. I am sure it has been there all the while and it only jumped out at me recently for whatever reason. The misinformation is so important it needs clarification.
The comment goes something like this: I am not saving right now because I am paying off student loans/credit cards/car loans/making extra mortgage payments. When you pay down debt you ARE saving and also building your net worth. The real question is: How can you balance debt reduction with retirement savings for maximum net worth building?
Paying down debt removes the most caustic item on your balance sheet holding back wealth creation. Debt interest is an expense you can only slay by destroying the debt (paying it off). Debt is not a bad thing in and of itself when used as a tool, but most consumer debt is bad. Mortgages are the exception if used properly.Read More
Millennials, loosely defined as young adults age 18 to 35 as I write this, are everywhere and messing up the machinery. Like a plague of locusts or alien invasion, Millennials are taking over the world with their opinions, ideology, work ethic, worldview, and their value systems. The old school is taking notice and whining about it plenty. Darn kids!
I disagree with my generation when it comes to bitching about Millennials. These young people do things different in some ways, but generally do a great job, even better than my generation in many instances. The slightly older (ahem) crowd needs to remember a few years back when we were the recipients of complaints from The Greatest Generation. We were asked why we were not so great. Pissed us off then, pisses us off now. So why do we pass the same BS to the Millennials?Read More
Gone are the days of lifetime careers. Today we think of multiple income streams as our safety net. Job security is an illusion. Accountants become farmers or bloggers on the side; plumbers become landlords; police officers offer fitness training on the weekend. Today we live in the world of slash careers.
Empowerment comes from educating ourselves in multiple disciplines. The accountant/blogger brings experience from the slash career back to her office providing clients with a better understanding of their personal tax and accounting needs.
So what is a slash? A slash is a professional person with mixed identity. Therefore, the professional can be an accountant slash blogger. People cannot settle on a single career path as safety nets disappear. Families cannot count on the government as their sole source of survival when things head south. The new paradigm has created mixed professionals with skills and experience crossing professional fields. Sometimes there is a correlation between the professions, but it is not necessary.Read More
Everything I am I owe to the world and people around me. Motivation and inspiration are the necessary ingredients to build the person you want to be. Reading good books every day is a must; listening to awesome people share their story is a must; learning every day is a must. Today I want to share part of my personal life. From a young age I started listening to Zig Ziglar; I have a picture on my wall at the office with Zig and I shaking hands. It was a highlight of my young life. Later I immersed myself in Tony Robbins. The internet, especially YouTube, allowed me to listen to massive numbers of happy, successful, achievers on a regular basis. Today I will share some of those videos I start and end my day with.Read More
Grandpa told us stories of how they increased fuel economy during World War II rationing years. The technology has advanced over the years, but the goal is the same: increase the miles traveled on a gallon of gas. Today we call this behavior: hypermiling. Rationing is no longer the motivation. Saving money and reducing our personal impact on the planet are the two main drivers (pun intended) behind hypermiling today. I will share the best methods I use to achieve 46 miles per gallon in a 2007 Toyota Camry. If you are willing to work the technology harder your results will probably be even better.Read More