You simply cannot build wealth by the proverbial “keeping up with the Joneses”. Such feelings inside someone will never be quenched by more material things and social status. Instead, focus on the freedom you want in the future….time, family, friends, hobbies and mental pursuits. If you spend your money now, you’ll have less in the future and most likely will have to keep working when you’re old and gray. Think about $20,000/year health insurance that people have to buy on their passive incomes now. It will be much higher in 20-30 years.
Two points that stuck out to me:
- Choose your passive income carefully. How much effort do you have to put into a “passive” investment?
- Live on less than you make. It’s amazing how many people think that they do not have to do this. Change your mind and your habits now.
Remember, the end game is not necessarily to pinch a buck; it’s to have the freedom to make choices—freedom to save, invest and do as you wish.
Read Full Story: 11 nuggets of wealth-building wisdom | Clark Howard
