<\/span><\/h3>\n\n\n\nIf there ever were a financial epidemic in the United States, it\u2019s the obsession with material goods as a means of proving our wealth and success. We want our neighbors and friends to see our success, so we use pricey possessions to flaunt it.<\/p>\n\n\n\n
But we also live in a country where luxury goods aren\u2019t limited to the wealthy. Almost anyone can qualify for the necessary credit to purchase expensive goods like cars, homes, and boats without having the money to pay for them. In the end, you often find yourself competing with someone in a completely different tax bracket.<\/p>\n\n\n\n
Stop measuring your success in life with material goods \u2014 yours and your neighbors\u2019. The true measures of success are health, love, friends, family, and experiences. You don\u2019t need to prove anything to anyone.<\/p>\n\n\n\n
The paradox of wealth is that the more you spend on the trappings of wealth, the less wealth you actually build. Fancy homes, cars, and clothes might make you look and feel wealthy, but they drain precious dollars from your real wealth: your investments. It\u2019s why financial experts encourage \u201cstealth wealth\u201d rather than spending as much as you can technically afford.<\/p>\n\n\n\n
Ironically, by building true wealth faster and focusing more on experiences, those still living paycheck to paycheck will envy you when they see how quickly you can achieve the quality of life you want. You\u2019ll be doing things like retiring early, traveling, or sending your kids to college debt-free while they\u2019re still paying off debt into their later years, a major regret of many older Americans.<\/p>\n\n\n\n
<\/span>If You Must Spend More, Set a Percentage<\/strong><\/span><\/h3>\n\n\n\nYou may be wondering what the point of working so hard to earn more money is if you can\u2019t spend it. The answers are plentiful. Examples include:<\/p>\n\n\n\n
\n- To build wealth faster<\/li>\n\n\n\n
- To help your kids with college costs<\/li>\n\n\n\n
- To cover the cost of training for your ideal career rather than your current high-stress career<\/li>\n\n\n\n
- To retire a few years from now and travel the world<\/li>\n<\/ul>\n\n\n\n
But not everyone finds those reasons as compelling as I do. Most people need at least a little bit of immediate gratification.<\/p>\n\n\n\n
If you can\u2019t help but lift your spending when you get a raise, set aside a percentage of it to spend and enjoy now. But not all of that raise is yours to keep. Uncle Sam takes more of it than you necessarily realize. And unless you live in a state without income taxes, your state and even city might skim some money off the top as well.<\/p>\n\n\n\n
So calculate that percentage set aside for spending as a portion of your extra take-home pay after all income taxes have been taken out. A $1,000 monthly raise might only leave you with $600 net extra income, so spending a third of it means $200, not $333.<\/p>\n\n\n\n
Luckily, you have plenty of options for tax-advantaged accounts, such as individual retirement accounts, 401(k)s, health savings accounts, and education savings accounts, if you want to invest your extra money where Uncle Sam can\u2019t reach it.<\/p>\n\n\n\n
<\/span>Invest in the Future<\/strong><\/span><\/h2>\n\n\n\nYour future depends on the investments you make today. If you start early, time can be your friend and not your enemy. Consider investing your money in more than just stocks and bonds, and save specifically for the future.<\/p>\n\n\n\n
<\/span>Build your financial foundation.<\/strong><\/span><\/h3>\n\n\n\nLike it or not, your personal finance plays an important role. Many people can\u2019t reach their dreams because of financial constraints. They are overwhelmed by debt. They live paycheck to paycheck. They have no space to pursue their dreams.<\/p>\n\n\n\n
A strong financial foundation, on the other hand, opens a way for you to reach your dreams. It gives you the freedom you need to pursue them.<\/p>\n\n\n\n
<\/span>Build your knowledge.<\/strong><\/span><\/h3>\n\n\n\nTo reach your dreams, you need knowledge. You need to know how to get to your destination. Knowledge is power. The more you have of it, the more power you have.<\/p>\n\n\n\n
So keep building your knowledge. As Steve Jobs once said: stay hungry, stay foolish<\/em>.<\/p>\n\n\n\n<\/span>Build your relationships.<\/strong><\/span><\/h3>\n\n\n\nYou can\u2019t get to your destination alone. You need others to be with you. For that reason, you should build your relationships.<\/p>\n\n\n\n
The most important relationship is the one with your family. So make <\/em>time for them. Don\u2019t let it become something that you regret later.<\/p>\n\n\n\nMake time for your friends as well. Help them without keeping score, and in turn they will help you.<\/p>\n\n\n\n
<\/span>Build your spirituality.<\/strong><\/span><\/h3>\n\n\n\nLike it or not, there will<\/em> be difficult times. In such times, it\u2019s your spirituality that helps you through.<\/p>\n\n\n\n
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