Sunday, November 9, 2008

Face The Facts: Part II

The reality is that all of us need money coming in to allow us to function in our society. No matter how you where raised and what your family thought about money, you have to come to grips yourself about this issue.

Wealthy people are not necessarily smarter, have unique talents, or come from the right family. They made a decision, at some point in their lives, that they would make finances a priority for a period of time.

Wealth is actually a good thing, not the most important thing in life, but a good thing that can make it easier to find time for those other important areas of life.

Lets consider the following:

1. If you and your family are making $50,000/yr, you are struggling to make ends meet.

2. Between $50,000 and $100,000/yr., some of the pressure is off and you can afford a few things.

3. At the $150,000/yr level, you can start enjoying other aspects of life that make life more fulfilling, however, you must not go overboard in your spending and doing foolish things. Being debt free is essential and I will discuss this at a later time in more detail.

4.As you go over $200,000 to $300,000/yr, you find yourself in a position to give in a meaningful way back to society. You should have more peace of mind, if you have been a good steward of your finances and not squandered it on meaningless things.

5. Once you are at the million a year level of income, you can spend money without being overly concerned. It does not really guarantee an increase in your quality of life, if you do not have balance in your life and your priorities are not right.

Once you get to the $100,000/yr level and focus on increasing from this point on, components that come into play include: saving, being thrifty, looking at the big picture, and careful planning ( being debt free! ).

Part III will provide added insight.

Jacques
CreatingWealthThatLasts

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