Getting control of your finances, increasing your net worth, and building wealth is not an easy thing to do. It’s actually extremely difficult. It will never happen without a plan, telling your money where to go, and the dedication to follow through with your plan.
Because of this, it’s important to figure out why you want to build wealth. Think about it right now! Why do you want to build wealth? Do you have specific goals you want to accomplish? Do you want to retire early? Do you want to change your family tree? Do you want the freedom to do whatever you please? Maybe you just want some “f#ck you” money? Whatever your reason is, it is important to have that reason fresh in your mind because you’re going to need to refer back to it frequently for motivation.
Personally, I don’t want to be a slave to anyone. I use the word slave because I firmly believe that if anyone has control over me and can manipulate me due to my finances, that’s exactly what I am…a slave to that person, job, loan company, etc. Currently, the only outstanding loan I have is the mortgage on my house and it’s driving me crazy. My mortgage, although extremely affordable as a percentage of my take home pay, is stressful because if keeps me from being able to leave my job if I wanted to quit today (to see how much house you can afford, look here). My emergency fund keeps me safe for 6 months if I lose my job but my mortgage is keeping me from being able to choose any job I want, regardless of what that job pays.
So, for me, not wanting to be a slave is my “why”, and the motivation from my why will keep me disciplined and help me achieve anything I want! Do I want to have f#ck you money? Yes. Do I want to retire early? At this time I do. Do I want to change my family tree? It will be done. Any goals I want to accomplish can become a reality, all because I have the motivation to never be a slave to anyone.
Now it’s your turn to think about why you want to build wealth. If my reason works for you, great! Roll with it and use it to live your dream of being free and financially independent. If my reason doesn’t resonate with you, sit down and figure out:
- What are your goals that you want to accomplish in life? Write this down on a piece of paper and write down whatever comes to mind. What would you do with the rest of your life if money wasn’t an issue?
- How would you live if you only had 6 months to live? What kind of life would you live? How does it compare to how you’re living now? How would it change if you didn’t have to worry about money?
- What are your most important goals? While you’re reviewing the goals you’ve written down, pick out which ones are most important to you. Will you be able to accomplish your goals without getting control of your finances? How will your goals be affected by building wealth? How will they be affected if you don’t change how you spend/save money?
After completing this exercise you should have an idea of what’s important to you right now and how building wealth will only aid you while trying to accomplish your dreams. Your goals will probably change over time so you’ll want to revisit this exercise periodically so that you can adjust.
So…What’s your why?
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