Finance Your Rich Life on Your Terms and Conditions, Your Way
Scrolling through Netflix looking for something to watch? Check out the series called How to Get Rich and learn from the author of the best-seller, “I Will Teach You to Be Rich,” Mr. Ramit Sethi, as he teaches us how to find and create our own “Rich Life.”
CNBC: Star of Netflix’s “How to Get Rich:” Avoid these 3 toxic money beliefs – ‘you can literally change your life’
Sethi encourages people to define what being rich means to them. When we set aside everything else in life, we all want more time to spend doing what makes us happy, often with family and friends. We work hard in life so that we can have free time in our retirement years. When asked about winning a lottery many people claim they would stop working so they would have more time for leisure. But why do we have to win the lottery to get more time and freedom?
We spend so much time working so that we can earn income to pay for things and buy what we need, hopefully saving money for our retirement years when we are supposed to be free and leisurely. Well, applying what Sethi talks about in describing our ability to create our “Rich Life” how we want it, why not find a way to have more time and freedom for leisure and sport while we are young enough to get more out of it and spend more of our lives enriched in enjoyment?
At Joseph Wrobel Limited we have learned a thing or two over the years, and we know that people are happiest when they can buy what they need, but more so when they can live their lives without complete anxiety. Learn how to break up with financial despair and get a fresh start at Joseph Wrobel Limited, the Chicago Bankruptcy Law Firm (312) 781-0996.
Stop Chasing the Neighbors and Their Spending Habits
The son of the rich dad is jealous that the neighbors always lease new cars every two years and they are all the envy of the neighborhood. The son doesn’t understand that his dad has much more money, in part, because he buys affordable used vehicles and keeps them longer. Kids don’t understand finance, and when their parents don’t understand how money works it can be easy for generations of people to never learn how to lift their heads above water and not drown while trying to keep up with the spending of other people.
Later, the son of the rich dad has well-funded college savings accounts to pay for school because his father prioritized saving money for schooling over leasing flashy new cars. Meanwhile, the other kid whose father always had those new cars, well his father ended up divorcing another wife, and is in near financial ruin, and can’t help his son pay for college, even though you might have guessed it right, his dad just leased another new car, with an obscenely high-interest rate. He looks good, but can barely afford the gas to show off to his friends and neighbors.
What is Credit For, and Can’t Emergency Savings Replace the Credit Line?
When the son, fortunate enough to have parents paying for school, gets a credit card for emergencies only, his father makes it clear what emergencies are. Emergencies, he says, are not a Friday night out, new clothes and shoes, or spring break trips. Furthermore, his father explains that he set him up with rainy-day savings account for emergency spending. He says to use that money for emergencies and if that money is depleted, only then can he use the credit card. This way if there’s an automotive repair on one of Dad’s older hand-me-down sedans, then the money is there.
Parents: This works with your children if you enforce the rules and have some consequences for errant or abusive spending with savings or credit cards. Too many other students have parents who might let it slide to go buy concert tickets with an emergency savings account or credit card. So, if there needs to be a consequence, get the student to earn their own money to replenish the emergency savings account or pay down the credit card balance.
Don’t Let Credit Scores Determine How You Live Your Life
Stop listening to people who tell you credit scores determine everything about you because it’s not true. A credit score is a computer-generated number based on data, determining whether you are a good credit risk for financial institutions to loan you money.
Credit scores do not help a person become financially stable, rather they help a person qualify to borrow money. There’s nothing wrong with borrowing money if that is what you want to do, but you don’t have to borrow money to have a rich life. If you require fewer cars, homes, furnishings, clothes, and whatever else, you can have more time to enjoy life. Living within your means and saving some money you know will help in an emergency can reduce anxiety. Many people who learn to live with less, also learn how to relax and get more out of life, whether they are still working or are retired.
Determine Whether Home Ownership or Renting Makes Sense Now or Later
Yes, owning a home that increases in value, puts more money in your pocket long term. But there are many other financial variables in determining whether it makes better sense to own or rent. Back to determining our own rich lives, we can reach our goals, travel, and enjoy all our passions regardless of whether we own or rent the home or apartment where we lay our heads.
Pros of home ownership include the increase in equity in your home and the ability to pay off the principal amount and interest. If you can pay cash for a home, or a significant cash downpayment, you are in a better position. In a good economy for buyers, there are deals to find when there is a surplus of inventory of homes available at discounted values.
Cons to homeownership include the additional and variable expenses that come along with home ownership, including maintenance, taxes, interest, and insurance, all of which are subject to change depending on the situation. Meanwhile, the renter has a fixed amount of costs and can better stick to a personal budget. Also, the renter can move at any time and find another deal that makes more sense without undergoing a major and taxable financial event like the purchase or sale of a property.
Just don’t do what some people do and starve yourself to get into a mortgage, only to find yourself unable to pay for it when property taxes or home insurance increases, or your mortgage itself changes. Some very wealthy people know that a good rental deal with moderate annual increases puts more money in your hands to do other things with, including saving for the future, paying off and getting rid of credit cards, and having money to back you up on any given day, greatly reducing anxiety.
Putting Yourself in Control of Making Money Directly Through Side Hustles With Growth Potential
Find a way to make money where you are the boss. Set your hours and work when you want. Learn to be in control and enjoy how it feels. You don’t have to start a major corporation to feel the pride of self-reliance and earning money without punching the traditional clock and answering a boss. There are all kinds of people whose side hustle money gave them the ability to pay for extra education to get a degree on the side, or grow their business idea into something that sustains them more than some fun weekend money on the side. There are many significant businesses out there that started as side hustles and just grew and took off.