Right now… take a moment to think about all the paychecks you’ve received throughout your lifetime.
If you’ve been in the workforce as long as I have… that’s far too many paychecks to remember.
Now take the number of years you’ve been working, in addition to the amount of net income you’ve pocketed after taxes… and compare it to the amount of money you’ve saved up to this point.
Is this a painful thought? Unfortunately… for most people it is.
I friend of mine, whom I consider to be an expert in personal finance, told me that he didn’t understand how someone could work for years… and not even have ‘two-hundred’ dollars in the bank. Now I would usually tell my friend that he was generalizing… but sadly I’ve seen too many people in that exact situation.
That conversation made me think…
WHO ARE WE FINANCING?
Are you financing yourself… or are you financing others? Now I’m no financial expert, and I’ve wasted more money than I care to remember in my day, but at some point… we all should wake up and realize some truths.
One truth is that you can build a sizable net worth by saving only 10% of your paycheck throughout your lifetime. Another truth is that the vast majority of people fail to accumulate a net worth… because we’re accustomed to giving our money away to help build other people’s net worth.
We spend a lifetime financing the net worth’s of restaurants, various entertainment, and retail… but what about financing your company’s net worth?
That’s right… YOUR COMPANY! (and I’m not talking about owning a business)
If you have a JOB, and a BANK ACCOUNT… then you own a PERSONAL FINANCE COMPANY! Your job is your ‘distributor’… you are the ‘labor’… and your paychecks are your ‘profits!’
After you receive your profits, how much you spend vs. how much you save throughout your lifetime… will determine how you run your PERSONAL FINANCE COMPANY!
Don’t think of it as saving money… think of it as building your NET WORTH!
So I will ask you again.
WHO ARE YOU FINANCING?
ARE YOU SLOWLY FINANCING YOUR PERSONAL BUSINESS…
OR ARE YOU QUICKLY FINANCING OTHER BUSINESSES?