I read a post this morning that described a poll done by TheHill.com. The poll shows that 47% of American voters believe that becoming wealthy is an impossible dream for them. The poll goes on to describe where people set the bar for wealthy. Is it $250,000 in annual income? $500,000? $1,000,000? To me, the second part of the poll is irrelevant. It is the 47% of people who believe that they cannot become wealthy that concerns me. Not only do I believe that wealth is attainable for us all, but I believe that becoming wealthy is inevitable if pursued with the proper plan and with proper persistence.
Before I can explain why I believe wealth is attainable for everyone we must figure out what wealthy is. I do not believe that wealth has anything to do with a number or a dollar amount. I believe that economic wealth is all about financial freedom. You are wealthy when your decisions are no longer dictated solely by money. When you are able to pursue the profession you love, not the salary you think you need. When you are not worried about losing a job because you have assets that pay you a monthly income. When you can take time to spend with the people and pursue the activities and causes that fill your heart with joy. When you don't feel helpless and trapped, but powerful and limitless. To me, this is wealthy and this can be obtained at any salary.
For example, you could make $1,000,000/year, but have a $5,000,000 mortgage, two car notes, thousands in credit card debt, a small retirement account, and no other assets. In this case you are making a very nice salary, but you do not feel wealthy. You may still be struggling to maintain your lifestyle and if you lose your job, the weight of your expenses may be too much to handle. At the very least, you may be spending a lot of time working which limits your free time and your ability to enjoy the other aspects of your life and pursue all of your non-financial dreams.
On the other hand, you could be making $40,000/year from a job, have a modest home that is paid off, have a car that is paid off, no credit card debt, an IRA and 401k that are funded and growing, an investment account that is paying quarterly or monthly dividends, and maybe some rental property. In this case you are making a modest salary, but you have built up assets and paid down liabilities so you feel comfortable and wealthy. You also have the freedom to change jobs, take vacations, and pursue your dreams and goals.
So the question is: What did the $40k person do to put herself in the "wealthy" category. Because on face value no one in America would necessarily consider 40k wealthy. The first step was that one day she decided that she wanted to be wealthy and that she wanted the financial freedom. She decided that this dream was possible and that she would do what it took to make it come true. Second, she decided to put that $40k to work. She started to aggressively pay down any debt she had (mortgage, car, credit card, student loans) and stopped accumulating more debt. She started putting whatever she could spare into her savings, retirement accounts, and investments accounts. This could have been $100/mo, $50/mo, or $25/mo. It didn't have to be a large amount to start. As her accounts began to grow, it became easier to sacrifice a little more in order to put more towards investments and savings. As her debts began to reduce, she paid less in interest and was able to pay the debt down even faster. Eventually, after a lot of patience, a lot of sacrifice, a lot of persistence, and a lot of discipline, she looked up and she was debt free and had her money working for her. But most of all she had the mentality of a wealthy person and the knowledge of her own power and freedom. She was then able to direct her life and pursue more dreams and goals.
Obviously this process is a lot easier said than done. It does take a lot of work and determination, but I promise you that it is possible for everyone. That is why financial education and financial freedom is the goal of our company Heritage Fund Realty and Investments. We believe that we all deserve the chance at this freedom and we plan to work with everyone interested in chasing down that dream. Knowledge begins with talking and asking questions, so join our Facebook, Twitter, or Google + communities and join in on the conversations.
I want to end this with a discussion about dreams. What bothered me so much about this poll is the TheHill.com poll described wealth as an impossible dream. I have always believed that no dreams are impossible. A dream is basically like seeing into the future if you want it bad enough and are willing to wait it out and endure the sometimes rocky road. I was talking with a friend of mine recently about how some ideas come from the head and some come from the heart. The dreams that originate in the heart are the ones that are unstoppable if pursued. I have many dreams - some professional, some personal, some other. Obviously I go for them all, but that is when reality steps in and says "not so fast" and puts an obstacle in my path or gives me the illusion that I have lost, or missed my chance. At this point I could give up or I could be stubborn and go ahead and keep trying a few more times. I usually choose the latter. Lo and behold, what happens is that some dreams begin to slip pass reality and come true and I begin to live them.
The way I see it, dreams are like a raging river and reality is a ill-equipped dam trying to hold back an inevitable force. The dam can hold for a while, but eventually the relentless force of nature is going to create some cracks. At this point reality becomes Clark Griswold trying to plug holes in the Hoover Dam with bubble gum. An impossible task for reality.
Eventually your dreams will bust through the dam of reality as if it is non-existent.
So has all of my dreams come true? Not even close. But some have. I think reality holds back the big ones while the little ones chip away at it and give me more confidence and determination to stay the course. My biggest dreams are still hanging out patiently, behind the walls, bidding their time and waiting to come crashing through with a huge, disruptive arrival.
Believe in the inevitability of your dreams and do not abandon them right before they are ready to erupt.
That is so sad about the 47%. What ever happened to the American Dream?
ReplyDeleteYes 47% is sad. I think that people are not confident in the dream because a lot have been out of work for 2+ years and If they are working, they are afraid of losing that job. The unemployment that is quoted is very understated because many people are not in the work force. I also think that people have lost faith in the markets because of scandals like LIBOR make people believe that nothing has changed since the financial crisis. Finally I think people have lost faith in the government because they do not get anything done. All we hear is argument and blame - no solutions.
DeleteThese are all reasons that we, as individuals, need to take these wealth matters into our own hands. We can not count on these institutions. We must create our own wealth and then shape the institutions and structures into what they should be.
The American dream was sold to taiwan, india, singapore and china
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