Recently, I read a jaw-dropping, eye-opening article relative to our financial future. The author projected that the ‘rich’ really will ‘have it all’ in less than 33 years from today. Huh?!!
Well, he states that by conservative calculations, the top 10% of the households in America could have 100% of all the net worth in America. He states that from 2013 to 2016, the top 10% of the households increased their share of total wealth from 75.3% to 77.2% – which is a gain of over 1.87% points. If that percentage of the population continues to gain at that rate – then that part of population will have the remaining 22.8% held by the other 90% in that period of time.
Are you kidding me?!! That prediction can make even the most prudent financial savers and earners swallow hard.
Sure…I ‘get it’…many of us (and, actually, I hope most of us) are not competing to be in the top 1% of billionaires. There is WAY more to life than money. Yet, I also believe most of us want financial security, the ability to pay for college tuition for our children, have a worry-free retirement, the comfort of knowing we have ‘enough’ to take care of ourselves and our loved ones in our old age and if sickness of any kind is present, and the soul-enriching ability to GIVE as much as we want to the causes which are near and dear to our hearts.
So…..given his data-driven projections, what can we do? Two thoughts to consider:
Get a REAL handle on ‘where’ you are today. There is a website which will help you, with its online calculator, determine where you are relative to your ‘net worth’ – which is simply your assets less your debt. Frankly, I am not a fan of comparing my finances with others’ finances; however, I am an ardent believer in managing my finances and saving for my future. I presume this comes from never marrying and for being 100% responsible for my finances since I graduated from college (that was the rule in the Kaufman household). So, rather than obsess about ‘where you are’ relative to ‘everyone else’….this site will help you determine if you are saving enough, when you can ‘retire’ at your current trajectory, and what you need to DO to improve the situation.
Earn more and save more. Sounds simple….yet, sadly, I know this is not as easy as it sounds. Yet, let’s face it: we are running our own ‘P&L’ – our own profit and loss business….it is our LIFE. The end game is to make more than we spend – and to save the excess. And yes….I like you…have struggled with this off and on over the years.
So….how can we get better at that?!
Well….first, I’m a big believer that we can’t save our way to huge ‘.01% of the population’ wealth. Yet, we surely CAN save our way out of debt and I am a passionate believer in the COMPOUND value of money. Putting our money to work for us is THE way we can leverage our hard earned dollars to their highest potential. So – that is Step 1: Put your money to work for you – thoughtfully and consistently.
Secondly, as most of you have heard me say before, we MUST create multiple streams of revenue. Having one stream of revenue (aka: a standard 9 to 5 job) is risky and limits us to the revenue we ‘earn’ while we ‘work’. Period. Having multiple streams of income….through a variety of ways….gives us security and allows us to attain passive revenue (which is revenue we earn despite not being actively involved every minute of every day – think: rental property, oil & gas leases, investment interests, direct sales companies, etc.). So – Step 2: Explore, investigate, and engage in multiple ways to make money. Ditch obsolete thinking about the new ‘you’ economy. There is tremendous merit in direct sales businesses – of all kinds.
One final observation: many folks are engaged in what we term ‘wealth-work jobs’. These jobs have expanded over the past few years, because our economy is doing better than average. So, folks are spending more on weeks at the spa, facials, massages, eye-lash extensions, personal trainers, private chefs, affluent travel, couture clothing, etc…..all these are luxuries we enjoy given the resurgence of our economy since the recession ended in 2009. Yet, these jobs are frankly not recession proof. When the economy hits another road bump – which it undoubtedly will – these jobs are likely the first to go, and those folks will be at a loss. So, if you are a provider of these types of services and are living large given the uptick of business in these areas….. I would suggest saving that hard earned money AND augmenting that revenue stream with ANOTHER revenue stream – well in advance of this happening.
We create our own safety net…..by making more or spending less or BOTH. So…whether you are a ‘half full’ or a ‘half empty’ person….the reality is the reality. AND how we CHOOSE to respond is what we control. I, for one, do not want to wait for the proverbial shoe to drop. We have the ability to create the lives we want…yet, no one said it would necessarily come ‘easily’.
What are we willing to do? What are we willing to ‘give up today’ to create ‘what we want tomorrow’? How badly do we want it?
4 things I can help you with right now:
- If these blogs are helpful – consider following me on YouTube: http://www.kristinkaufman.com/Kristinyoutube
- If you are struggling with what you want to do (or how to do it!) – get a copy of my Alignment questionnaire….to shed light on how to create the life you want! Click this link to get YOUR copy: http://www.kristinkaufman.com/free-assessment/
- Let me help you build an additional revenue stream to augment your other incomes! Click this link to learn more about this: https://partnerwithkristin.com
- Need a new perspective or ‘jolt’ to your thinking – go to kristinkaufman.com to learn more about about my books, workshops, or where to find me online. It is ALL there…..