This is not a blog about how to get rich.
Surprised? Shocked? Disappointed? Don't be. Wealth is what we are after here and there is a core shift in mindset that occurs when we stop focusing on getting rich and start focusing on building wealth.
What's the difference?
Well, Merriam-Webster won't be giving me any high-fives for the definitions below, but in the cause of our Millennial to Millionaire journey, these descriptions will help us stay aligned and you stay on target:
Poor People... Can't GET money
Broke People... Can't KEEP money
Rich People... SPEND (lots of) money
Wealthy People... Have Money MAKE MORE MONEY
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| For the visual learners out there :) |
Some of you looking at your debt are saying... "I don't know Katie, I think I could be OK settling for 'rich'."
That is absolutely your prerogative, but let me show you what you're in for by telling you an all-too-common tale about my friend, Mr. Jim Jones.
Jim is a smart & hard working guy. He went to a great 4-year school, had some nice internships, and is now on the fast track at his company, Big Firm, LLC. After 2 years as a Senior Analyst, he thinks he is in for a promotion this year... and boy could he use it. Jim has $15,000 in student loans and a $230 car payment every month. He still rents, living downtown close to work and all his friends, James Jones, Rachel Jones, & Chris Jones. He is thinking about returning to get his MBA and would also like to stop renting and buy a house. Plus, his car that he started driving in college is looking a tad dingy.
Congratulations! Jim gets his promotion and is now a Manager of his team. Jim is so thrilled that he can finally afford the life he deserves. To celebrate, he goes out to dinner with his friends, and like many of the other managers at the firm, leases a shiny new BMW with his raise.
A year later, Jim is feeling disappointed. He now makes more money, but it doesn't feel any different. After all, he still has $13,000 in student loans, has a $400 car payment, and wonders why even after the raise, his friend Chris Jones, still an analyst, can afford that $800 watch and he can't.
Sound familiar?
Jim is officially in what many call, "The Rat Race," but what I like to call, "The Rich Race." The thing is, once Jim got more money, he just spent more money, leaving him NET ZERO. Like most "Joneses" he believes the solution to his problem is making even more money, so he begins to work harder in his new role, for the next promotion, for the next raise, and so on. Jim keeps "moving up" but doesn't actually go anywhere.
We do have a marathon to run if we are going to become wealthy, but running "The Rich Race" is not going to help us A) train for it or B) win it.
So that's it for today - stop working around-the-clock to get rich, and start working around-your-life to get wealthy.
Happy Pay-Day Friday!!
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