Forget Looking Rich…BE Rich!
|October 16, 2007||Posted by Roshawn Watson under Uncategorized|
By: Roshawn Watson
Prosperity on Credit
What is the good life to you? Like many, I used to imagine Barbie and Ken with the big home, matching BMWs, vacation home(s), and luxurious yacht. I assumed that Barbie and Ken were the very portrait of success. However, a closer look revealed that my vision was distorted. That mortgage payment is over 50% of Barbie and Ken’s gross income, and the BMW is leased. That boat was financed too. Once I realized that Barbie and Ken likely had plenty of credit cards and student loan payments too, I had a profound revelation. Barbie and Ken are broke! They are just a lot more risky and have more toys. They could not write a $20,000 check with their own money because they literally spend all of the wealth they can get their hands on. They have borrowed money to look and feel rich.
David Bach, author of “The Automatic Millionaire,” sheds some much needed light on this issue…
There is an unbelievable amount of wealth in America (and other developed countries), yet most people are not wealthy. For example, nearly half of the wealth in America is owned by less than 5 percent of the population. Individually, the other +95% doesn’t even come close, and the middle class is a dying breed.
Income vs. Wealth
That’s because obtaining a high net worth usually requires discipline and other smart wealth-building decisions. Unfortunately, most people do not have much wealth. Recall, wealth is how long you could survive financially without working.
Similarly, true financial independence means you have accumulated enough wealth to survive financially without a job. Your investment income supports your lifestyle.
Reshaping Your Portrait of Wealth
Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.