Most so-called financial “experts” are constantly harping on playing the stock market, getting a better rate of return, etc. But I have found that being obsessed with returns is really missing the mark in terms of building true wealth, on ANY income.
I think for most people, when they stop the transfer of money away from them, they will be so much better off than just trying to get a better gain on that money. In other words, it is not about a rate of return, it’s all about stopping the transfers.
- Bad debt (including a long-term mortgage for a house you live in)
- Purchasing too many consumables
- Bad investments
- Family issues
- Becoming disabled
- Litigation, or law suites
- Bad health
- Market risk
- Theft, or fraud
- Financial disorganization
- Trusting others with your money instead of yourself
- Lack of knowledge
There are so many ways that you can be relieved of your money. Does this list remind you of some times you have lost money? My point is that if you review this list and make necessary changes with those things on the list that you do control (I would start with over-spending and debt first), you can avoid many of the reasons you transfer wealth away from you. This is ultimately way more important than to constantly worry about how much you earn at our job or how the market is doing.