One of my “financial four traits” for creating wealth is discipline. “If you can’t control yourself, you can’t control your wealth.” Many people do not understand what it means to build wealth, they would rather be “rich,” financially uncommitted, and “live for the moment.” Their financial ignorance is bliss and they have no idea that the difference between being “wealthy” and being “rich” is owning assets, and more importantly owning time and peace of mind.
I know a person who makes a six-figure annual salary, drives a new luxury car, and lives in a $450,000 suburban home. On the outside looking in, this person appears to be “wealthy” and have their financial house in order, but remember men and women lie and numbers do not. Actually, this person is “rich.” What is so bad about being “rich,” you ask? Well, this person works 12-hour shifts, rarely has free time and is unhealthy from constantly eating out. Unfortunately, after using all of that six-figure salary to pay off expenses, he is only two paychecks and a credit card away from being homeless.
I also know a person who only makes about $60,000 a year from her business, owns a late-model luxury car, wears discounted designer clothes, has paid off her mortgage, and has two side hustles. She goes on vacations whenever she chooses, does not work a “9 to 5,” has thousands in her bank account and investments, and can spend her time doing whatever she enjoys! Although you may not know it because she does not flaunt it, this person is actually “wealthy.”
A person is “wealthy” when they do not have to work for money, but instead receive income from the assets they own and yet still maintain their lifestyle and do whatever they choose.
Sounds good, right? But “doing it” is what counts. And it is the “doing it” that separates the poor from the rich, the good from the great and the amateurs from the professionals. However, discipline, which is the following of a code or systematic plan, seems to be the main ingredient to not only financial success, but all success.
Michael Jordan constantly practiced his skills and shot 1,000 times daily = Greatest NBA Player of all time.
Richard Pryor forced himself to think of three new jokes everyday = Greatest Comedian of all time.
Bill Gates, a college dropout still falls asleep at his computer while thinking of innovative ways to make computers better = 3rd Wealthiest Person in the World.
It is the application of discipline and practicing positive financial habits that will ultimately lead to wealth and financial success. The “wealthy person” mentioned above became that way by staying financially committed to her plan of saving 15-20% of her total income, becoming financially intelligent and creating multiple incomes by starting various businesses. She also created a plan and focused on paying off her mortgage and not spending her extra money on “bling things” that decreased in value after being purchased.
Some people may say, well she never really “lived her life.” Well, she does not have to wait until she is 60 years old to enjoy the “good life.” Since she established financial discipline in her early 30’s and setup financial systems and plans to make money and pay off debt, she can buy those Manolo stilettos she always wanted and that new supercharged java black Range Rover sport she saw in a magazine.
Although she was not recklessly spending and “living for the moment,” she was indeed planning for the moments, so she could soon live how she wanted.