What’s the most important factor to getting rich? If you say it’s only about a huge income, I’m sorry to tell you that’s just not the full story.
There are countless examples where high-income earners go bankrupt that prove this theory wrong.
For example, look up the stories of multi-millionaire athletes who lost almost everything:
- Evander Holyfield (boxer)
- Mike Tyson (boxer)
- Lawrence Taylor (NFL player)
- Antoine Walker (NBA player)
- Lenny Dykstra (MLB player)
These guys’ life stories show how tens of millions and hundreds of millions can disappear in just a few short years.
Not to mention the doctors, lawyers, bankers, and other high-earning individuals across every profession who have gone financially under water thanks to frivolous spending and bad money decisions. We just don’t heart about it every day because they’re not famous.
The point this makes is that income alone won’t create wealth. When you look under the hood at what creates true, long-term, sustainable wealth, then income is only part of the equation.
The #1 Key To Building Wealth
To start this off, let me clarify: I’m 100% on board with making the most money possible, don’t get me wrong.
Money represents how valuable you are to the market and what kind of game you got.
So get as high of an income as your worth, and then some more to top it off.
What I’m advocating here is for you to also make the most out of the money coming in so it sticks around for the rest of your life.
Income is a prerequisite and step one of building wealth. Get a job (or two), start a side hustle, or start your own business to make money.
But once you have this money coming in, smart money management (aka financial intelligence) is the #1 most critical factor to your financial health and future wealth.
Building financial intelligence means you’ll be skilled at:
- Paying off debt in the most efficient manner possible
- Saving money for big expenses down the road
- Having money for financial emergencies
- Spending less money on material items that don’t improve the quality of your life
- Investing to grow thousands of dollars into millions of dollars
- Setting yourself up for early retirement
- Reaching financial security and stability
- Crossing the finish line of financial freedom
It doesn’t matter how much money you have coming in if the process looks like money in and money out.
How are you going to build a nest egg if none of the money sticks around or grows for you? That’s the point, you’re not.
The people who know how to handle their money in bull markets, bear markets, and everything in between end up with the most money.
By mastering their money, they also sleep easier at night, stress less about money, better provide for their family and community, and are free to live a more fulfilling life.
And learning smart money management isn’t too difficult if you spend one hour or two a week to acquire this knowledge.
Gaining Financial Intelligence
No one’s going to develop a smart financial mind for you, it’s all on you.
But don’t over think this process. Just seek information and you’ll pick up the core money principles, slowly but surely.
Here are a few financial resources to get better educated about your money:
- My money book is for young adults who want to reach financial security and then financial freedom
- My YouTube playlist titled How To Get Rich is also for people who are hungry to learn about investing
- FinancialSamurai.com is a top blog for anyone and everyone to learn the truths about building your nest egg for retirement
- The Dave Ramsey Show is an informative podcast for those who are deep in debt and desperate to break free
To be honest, I’m only pitching my book and YouTube videos because I’ve heard firsthand from real people who said these honestly changed their entire financial reality.
But there are plenty of other resources online (just be smart about who you listen to).
Start reading, listening, and watching material about money from the right people to subconsciously pick up the key principles. If you’re starting at ground zero, you need to be like a sponge in the beginning to soak up as much information as possible.
It sucks to be poor. But it’s even worse to taste some financial success and then go back to where you started because you didn’t handle your money the right way.
Don’t put yourself through that.
Learn about how to master your money, then execute, and you’re sure to wind up wealthier than you can imagine. It also takes time, so be patient.
Money goes to people who treat it well.
Let this content act as a push in the right direction or reminder to get your money right. With enough money, you can buy financial security and freedom.
That’s not a bad life. Not bad at all.
This Post Has 4 Comments
Love what you’ve done here and some of your previous posts about your income progression and entrepreneurial journey. So cool you’ve started it right after college instead of like me, 10-13 years after college. I tried to comment on previous posts, but the comment section is closed I think. Open it up! No harm.
I’m so pumped you commented! Been reading your blog every week for maybe 5 years now so this is really cool for me.
(Hmm, that’s weird. I have my comments open but I’ll check to see if there’s some problem on the back end.)
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