There is a huge difference between being debt free with $100,000 in net worth and being ultra wealthy. Yesterday was a huge eye-opener for me. As many of you may know, I sit on the Board for a local non-profit (don’t be too impressed – I volunteer my time and receive no compensation for these efforts). I am by far the youngest individual on the board, and (lucky for me) many of the other individuals that volunteer are retire executives and millionaires that want to impart their wisdom on the younger generation.
Since the summer season is drawing to a close here in Michigan, a few board members and myself decided to go out for a round of golf yesterday. This is where the eye-opening began. Since we are all involved in finance in one way or another (I am a financial analyst, Brad is a VP of a local bank, Mark is a retired executive, and Jerry is a retired financial advisor – P.S. I have changed the names to protect the innocent) the conversation naturally gravitated to personal finance and money. The main story of the afternoon was about an investor that backed a company with $500 million of his own money, which soon became valued at $7 billion within just a couple of years! That’s crazy!
My Brain is Thinking On Too Small of a Scale
Most of my posts are about how to increase your wealth by $1,000 here and there. Not millions! Am I thinking too small? I think so.
One of my main goals is to pay off my house by the end of next year. This would mean that I would pay down $55,000 over the course of 15 months. This seems pretty aggressive compared to many, but if I compare my goals to those that have made millions of dollars within a just a couple of years, my goals look incredibly crappy!
I once had a friend that hated classwork. He didn’t always catch onto things very quickly, so his goal in each class was simple: don’t be the dumbest kid in the class. Naturally, with this goal in mind, he was always getting grades that were the 2nd or 3rd worst in the class. But, since he was meeting his goal, he was fine with that.
That’s how I’m feeling right now. I’m fighting to be just a little better than the dumbest people in America. While everyone is out spending money that they don’t have, I’m just trying to outdo them by a narrow margin and stick to my budget, while increasing my net worth only slightly every month.
My Latest Money Maker
It was just a couple of days ago that I decided to buy a truck to flip (Article: Let the Car Flipping Begin). I was so excited about the potential of this flip…..until yesterday. I would have been absolutely embarrassed to talk about this idea to the guys yesterday. Sure, I might make a thousand bucks, but what kind of lasting residual does this investment create? Absolutely nothing!
Of course, life is not all about making money, but with the proper mindset it can be done rather easily. And, with money come options. I could finally do what I want with my life rather than what I have to do. I need to keep reading my book, “The 4-Hour Workweek” and pick up a few books about where futurists believe our economy will be in the next ten years. By thinking ahead of the curve and taking large actions instead of these small thousand dollar investments, I should be able to achieve much larger goals for myself in this upcoming year.
Do you have large goals? Do you think that I have been thinking too small?
Here are some reads of the week that I enjoyed, but to be honest, some of them might be thinking a little too small as well. What do you think?
How Many Credit Cards Should I Have Until It’s Too Many? at Financial Samurai
Why Are You Still Broke at Eyes on the Dollar
Why Most Personal Finance is Probably Wrong at The Money Principle
Leadership and Financial Parallels at My Own Advisor
Financial Gain Without Pain at Money Counselor
Dear Government….Grow Up at Debt Roundup
How Do You Stack Up to People Your Age Financially at Young Adult Money
Is Working From Home Cheaper at Making Sense of Cents
Your Career is Your Most Valuable Financial Asset at Free Money Finance
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.