Can you believe it’s already December?! I don’t want a lot for Christmas. There’s just one thing I need. I need to know how I’ve done this year! It’s the season for celebrating with family, drinking a little eggnog, and for going over how I did financially. I’ve been working at my job for 5 months now, longer than any employer I’ve ever worked for (full-time, at least). With the 40 hours a week that I invest in my employer, I want to see some returns and have something to show for it. I want it to contribute to the thousand mile journey of becoming a millionaire. .
The United States has a wealth inequality problem. It’s not a secret. Wealth inequality exists because of the way capitalism is designed to be. In economic theory, employers will never hire if the employee costs more than he or she benefits the company. If the person generates 5 units of value (arbitrary number) then the employer will only pay at most 4 units of wages. When there’s a huge disconnect between those values, an employee either has leverage to negotiate a higher pay or will get fired. The bottom line is that the employer HAS to benefit.
I’ve detailed in an earlier post how I’m building net worth, but losing cash every month. This is a result of me putting a lot of my savings into my 401k. The problem with it is that 401k’s are illiquid. I don’t even know if I should even factor in 100% value of my 401k into my net worth because of the immediate 10% penalty that comes with it. Maybe I should value it at a 10% discount until I’m 59.5. I don’t know. Anyways, the high amounts I’m putting into my 401k is creating a cash crunch problem. Meaning that unless I can come up with a solution in the next month, I will have to rely on paying credit card interest (gasp!).
Thanksgiving has come and gone (at least, if you’re living in the United States). After every Thanksgiving holiday, we seem to have less money than when the holiday started. Spending time with family and friends is a wonderful time. Now it’s time to see how you did financially and whether you’ve done better than the average family in the U.S.
It could happen. You could suddenly win the lottery, win over-the-top health insurance money, or any of the other things that could give you a pile of money. I potentially could be put in that situation where I come out $50,000 richer.
Back when I was living the student life, I wondered if having no cars, eating the cheapest meal, or occasionally refraining from the nightlife would ever pay off. Long story short, it did. I’m so glad that I went through it all because it’s set me up to not live like a student currently. Building a good enough nest egg during college took money stress out of my life. I don’t have to worry about repaying student loans, car loans, or credit card loans. If someone hasn’t gone through living like a true student yet, I highly recommend it, because it just might set you up for life, financially.
I’ve always wondered how people achieve career success. Is it their personality, is it that they outwork others, or is it that they’re naturally talented? I recently started my career mid-2016. As a person who’s heavily influenced by Malcolm Gladwell, I’m beginning to realize that what matters the most for a career to be successful is the environment.
Like many of my readers, I want to be a millionaire. Heck, I even took the millionaire pledge for crying out loud! As part of my pledge, I shared that no one in my family has ever been or is a millionaire. I hope to be the exception to the rule.
Popular personal finance blogs and practical sense advocate for you to make more cash than lose cash in the last 30 days. If you spend more than what you bring in, there needs to be something that makes up that gap (like debt), otherwise your funds will dwindle. I wholeheartedly agree that over the long term to be sustainable, that needs to happen. However, I lose cash more months out of the year than not. Losing cash is not always a bad proposition, depending on the circumstances.
I’ve wrote about how saving a significant amount of income paves the road for financial independence. It may not happen overnight and sometimes I have a hard time grasping that. I want to get there fast, but cutting corners could set me back along the way. Therefore, I look for ways to be patient and let things run its course. Saving consistently over time is an inevitable way to reach financial freedom. However, on the other side of savings rate is looking at what you’re spending money on. Monitoring your expenses and spending is just as important as monitoring your savings rate.
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