Stop 3: Where Am I Today?

 

Has any one heard of Jeff Bezos? What about Warren Buffet? Bill Gates? Oprah? I could continue but this isn’t Forbes and I can only fight the money envy for so long. These people are considered by Forbes as the richest of the rich.

Of the four people I listed guess how many inherited a significant portion of their money?

Zero.

Zip.

Zilch.

These four incredibly wealthy people made their money in one lifetime and could spend the rest of that lifetime trying to spend it to limited success. But how do they judge their wealth? Is there some comedic sized money counter hidden in a secret layer that works non-stop (presumably powered by nuclear fission)? Furthermore, how is some magazine finding this out? It’s hard to imagine Warren Buffet bragging about his wealth while munching on an Egg McMuffin.

how-the-stock-market-decides-warren-buffetts-mcdonalds-breakfast-every-day

How did you get in here?

 

Forbes and everyone with an internet connection knows these astronomical numbers because they are not tracking their cash; they are tracking their Net Worth. By tracking their purchases of appreciating assets they can track their estimated Net Worth. Net Worth is the single most important number in your financial picture! It’s the financial scoreboard that lets you know how you’re doing. Seems important right? Than why do so few people even know their number!?!?!

Do you know yours?

 

Where Am I today?

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Stop 2: How Long Do I Want to Have to Work?

Have you ever watched a commercial for prescription drugs? There are usually two kinds. The cold clinical kind that spells out all the benefits of the drug they are advertising and the other kind. I want to talk about the other kind for a second.

The other prescription drug commercial shows people before and after they take this revolutionary drug. It opens with people miserable. They’re sitting in some non-descript room staring longingly out the window wishing they could enjoy the day. Then suddenly the hard to pronounce wonder drug is introduced to them by their doctor (who definitely is not paid to recommend this branded product). All of the sudden they’re kite surfing and running with the bulls. They’re finally living the life they always dreamed of! If you haven’t seen one of these here’s an example

While I have no pills or a medical license I do want you to get to the after just like in the drug commercials. In Stop 1 we decided what that “after” looks like. Now let’s choose when we reach that magical world.

How Long Do I Want to Have to Work?

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Insert Montage Here

30 and 0.

For the fight fans among you this may seem like an impressive record. The record of a champion. The footnote of a conquering hero’s career rife with awards, fanfare and the adulation of women and men alike.

I believe this situation qualifies for what they call a double entendre.

I won’t insult your intelligence this early in our relationship and explain what a double entendre is. Mostly, because I’m sure I’m using it wrong in an attempt to impress you. I’ve heard Jay-Z use it so maybe check with him. That said I will explain myself.

In this instance 30 and 0 speaks to a sudden realization of how poor some of the choices you have made really turned out to be. In this case 30 and 0 means I arrived at the age of 30 with $0 saved.

Goose Egg. Zilch. Zero. Nada.

How did this happen? Wasn’t I supposed to be married with children, a six figure income, and a full head of hair at 30? For those keeping track none of those things panned out. I’m single, balding, and fairly penniless. Come to think of it I think my lack of savings is likely what caused my balding but I digress.

Don’t get me wrong my life is pretty great. I am not writing to add to the whining that the internet has become filled with these days. Rather, I am sharing my situation in the hopes that I can show how you can rebuild your finances or convince someone younger to make better choices.

So How Did I Get Here? 

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