You, my faithful reader, are going to be wealthy forever. So often I write about the idiots that spend $140 on a single meal or go on a $5,000 vacation, but this isn’t you. You’re different. You actually think about being wealthy someday and are taking the proper steps to build some serious wealth when you’re older. Here are the 10 reasons why I believe you’ll be wealthy forever.
Against my advice, so many of my friends have purchased homes at the very upper end of what the bank would lend them. They loved the house…for about a month, and then realized how much the payments were killing their social life.
You did not do this. Good for you! You still have a mortgage of course, but it is manageable and leaves you with some cash at the end of the month.
2) You don’t have car loans
Thank goodness you don’t have a car loan. Doesn’t that feel awesome?? Sure, your car may not be the most flashy, but it probably still gets you from point A to point B and it’s cheap to fix! By avoiding that car loan, you can put your money toward something that will benefit you for the long term.
3) You’re getting the company match by contributing to your 401k
Investing is not very exciting, but you are smart enough to understand that no one else will do it for you. There is no such thing as a pension anymore, social security is crumbling, so the only thing that’s left is your 401k! Those that dream of wealth will contribute enough to get the full company match every time, no matter if the market is flying high or dropping like a rock. Stay consistent with your contributions and your chance of wealth are great.
4) You don’t have any credit card debt
At 20% or more, credit cards are one of the worst forms of debt you can accumulate. You, however, will never get yourself into trouble because you don’t ever carry a balance on your card. By paying off that card each month, you pay zero interest and might even earn some rewards!
5) You have all of the proper insurance
There are way too many people that lose all of their wealth because of a medical disaster. You will stay wealthy forever because you have medical, home, car, and disability insurance (and possibly life insurance if you have dependents). Plus, you have an umbrella policy that will cover you in the event that something terrible happens to you or someone in your family.
Just like a corporation would do, you gather up your profits at the end of each year and you look for ways to invest the money! Perhaps you started a business, bought some rentals, or invested your money in the stock market. It’s great when you have your money earning you more money isn’t it?
7) You don’t buy depreciating assets
The biggest swear word in your house is, “depreciating assets”. Okay, that’s two words, but you get my point. Beyond your car, you absolutely hate buying things that go down in value. A boat would be nice, but not only does it go down in value as you own it, the cost of fuel will yank hundreds of dollars from your wallet each weekend.
8) You eat well and exercise
Great job. You are fit and active and have no need for taking medications. Keep this up and you won’t waste all of your money on treatments, medicine, or doctor’s visits.
9) You have a 6 month emergency fund
Emergencies happen – you know that. That’s why you have 6 month’s worth of expenses stashed away in a savings account. If you or your spouse happen to lose your job, you won’t have to rush out to find a crappy job just to pay the bills. Take your time, set your head straight, and find your dream job.
10) You stay content with life and live simply
Many of those that have zero net worth are the ones with huge homes and fancy cars. They bought it all on credit and have absolutely no equity. You, on the other hand, have stayed content with life. Your home is modest and so are your cars, which is allowing you to build some serious wealth! Congrats!
So what do you think? Will you be wealthy forever?
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.