Is Wealth Truly What They Portray It To Be?

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As a member of the FIRE community, it’s difficult not to open Twitter and see people brag about their victories, but rarely about their losses. There’s nothing wrong with that; in fact, I encourage everyone to celebrate their victories, no matter how minor they may be. But before we dive into what wealth is and how to acquire it, we must first understand what “being poor” or “living poorly” means.

What Does It Mean To Live Below The Poverty Line?

President Joe Biden once said: “if you’re making less than $15 an how, you’re living below the poverty wage”.

It means you and your family of four are poor if you earn less than $26,500 per year.

Here’s what the 2021 Poverty guideline looks like:

According to studies, approximately 40 million people live in poverty. According to the Census Bureau, that’s about 17% of adults, and that’s without assuming a 10% increase in adults living in poverty from 256 million in 2020. When compared to other countries with no economic power, it may not seem like much, but when compared to other major countries, we tend to leave some of our fellow citizens behind.

This is what the government uses to determine whether you are living in poverty or not. So, if I understand correctly, the vast majority of adults should be able to live comfortably, correct? When our utilities go up every year and our paycheck stays the same due to inflation, I don’t think so. Although this isn’t the only factor, let us see what we can do about it.

How Can One Avoid Becoming Poor?

To be honest, I’m not in a position to provide a single answer that applies to all possible scenarios. Thanks to my hardworking parents, I’ve never been in such a position in my life, but when I lived in Haiti, I saw what poverty looks like, especially when your government is unaware of your existence.

Here are my top three:

My top three are as follows:

Make an investment in yourself. There are numerous free resources available to help you improve yourself. Join your local library if you don’t have access to the internet. Before going any further, familiarize yourself with YouTube. Choose a topic that interests you and commit to it for at least six months. While learning new skills, I would even recommend offering your services for free. Don’t be afraid to seek assistance. There are a multitude of jobs that do not necessitate certification.

 Unless there’s a compelling reason, you don’t have to remain motionless. According to what I’ve learned, if you let it, the system will do everything it can to keep you at the bottom. There are numerous side hustles that require no or very little initial investment, as well as trade jobs that are in high demand.

Set your ego aside and focus on the task at hand. Why make things even more difficult for yourself and your family if you’re already struggling? Every day you wake up is a blessing; don’t let your journey come to an end. Time will not wait for you.

Everyone Has A Different Conception Of Wealth

For some, wealth entails all of the flashy things, a large house, and anything materialistic. If you can afford them, that’s fine. If you’ve worked hard for your money, you have every right to flex.

However, I can only speak for myself because I am unable to speak for others in the FI community. Material things don’t hold much weight with me. Being wealthy has nothing to do with being a multi-millionaire in terms of cash value, though it may have something to do with assets. It’s all about having the freedom to live, travel, help as many people as I can, and work wherever I want without being bound by any bosses or financial institutions.

According to Schwab’s 2021 modern Wealth Survey, Here’s what each generation should have as net worth to be considered wealthy:

• Millennials (ages 24 to 39): $1.4 million
• Gen X (ages 40 to 55): $1.9 million
• Baby boomers (ages 56 to 74): $2.5 million

How Do One Create Wealth?

Here’s a look on how it is going for the 1% and 50% for the past 20 years:

Here’s what I think they go by:

1. Find out what the secrets are. I don’t believe there are any money-making secrets. All you have to do now is devise a viable strategy. Maybe a little bit of luck. When you look at these wealthy people, you’ll notice that they all have one thing in common: they never give up.
2. Don’t go after the cash. If you don’t change your mindset, you’ll burn down sooner or later, potentially causing a domino effect.
   
3. Begin by saying no. This is a difficult one, especially for those who are sensitive. When you have to constantly stop what you’re doing to please someone, it’s sometimes best to let go of a friendship. I’ve lost a few friends because I refused to work on their projects for free.
   
4. Rather than a side hustle, start a full-fledged business. You can have multiple side hustles, but having a solid business to focus on where you can offer your services or make sales can become a significant part of your financial portfolio.
   
5. Invest in stocks, but don’t put all your eggs in one basket. Only put money into investments that you won’t need in the near future. I recommend beginning with an index fund. If you don’t have time to research individual stocks, this is a good option.
   
   – Do NOT listen to any so called social media “Gurus” telling you what to invest in. 

– At all costs, avoid FOMO (Fear Of Missing Out).

6. Keep your spending to a minimum. Only purchase when absolutely necessary. Yes, I am a frugal person. For almost three years, I’ve been living on a budget. Understand that there are no rules dictating that you must always upgrade or be extremely frugal. One thing I can tell you is that not constantly spending money on things you don’t need will allow you to save money today for things you’ll need in the future.
   
7. Please share this with others. Make sure you don’t keep the information to yourself. When you become financially valuable to others, you tend to make more money.

8. Take action. Visualizing yourself as a wealthy person can be very motivating, but what good is it if you don’t take action?

It’s Only As Wealthy As You Make It

Perhaps you don’t need to hit these figures to be financially self-sufficient. The goal is to start investing right now, with no regrets, and not to try to reach these numbers by burning yourself out. Use this Retirement Calculator to get a rough idea of how much money you’ll need to retire and live in your own term.

I’M CURIOUS TO KNOW WHAT BEING WEALTHY MEANS TO YOU?

Happy Thanksgiving All and Stay Safe!!!.

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