Recapping easy traps people tend to fall into when it comes to money and saying good bye to Joe's game show voice!

• Someone who saves $500 a month at 10% for 30 years, winds up with over $1.1 million. Someone who waits 10 years and then starts the same exact program would wind up with less than $400,000. (01:44)
• For a young family, your future income potential is your greatest asset. If you make $100,000 now, then over the next 30 years at 2% wage growth, you would bring in over $4 million. A huge asset that is exposed by not having disability insurance protection. (03:18)
• Spending a greater percentage on our budget on cars and houses and other shiny objects can feel great and simultaneously, it can push us farther away from being millionaires. (07:14)

Quote for the episode: "Wealth is what you have, what you save and grow, not what you make." (08:42)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Welcome to the Enjoy More 30s Family Finance

podcast. The only podcast dedicated to making life more

enjoyable for young families, by hitting on the financial topics

that tend to weigh on us, stress us out, and distract our focus

from simply enjoying life.

Welcome once again to the Enjoy More 30s Family

Finance podcast in our series recap of 10 Ways To Not Be a

Millionaire. As always, if you like what you're hearing, please

make sure to subscribe, please make sure to follow us on Apple

podcasts wherever you happen to listen. Clicking stars, leaving

reviews really helps us reach the literally millions of other

young families out there that are just like you. Now if you

actually do want to be a millionaire, you do not have to

worry, this series wasn't just for those people who are looking

for financial ruin. If you avoid doing these 10 things then you

could be well on your way to millionaire-hood as well.

Why I did this series, other than enjoying doing my game show

or announcer voice, was to highlight some easy traps people

tend to fall into when it comes to money. As I've said for a

very long time now you don't need to have anxiety when it

comes to money. And with the right mindset and a few steps in

the right direction, you can make really huge strides. So

every stride you take every step you take be proud of yourself as

you take them. If you take even one step forward as a result of

listening, you're better off than you were before. So I'm

going to run through a recap of all of our 10 Ways To Not Be a

Millionaire. Think about which ones would be most important for

you to take action on today. And back to my game show voice.

First up is Saving Late. Saving late is a great way to not be a

millionaire. Someone who saves $500 a month at 10% for 30

years, winds up with over $1.1 million. Someone who waits 10

years and then starts the same exact program would wind up with

less than $400,000. Over 60% less saved up. So saving late is

obviously a great way to not be a millionaire.

The second great tip was on Missing the Match. Your company

may try to give you free money, a 100% return through a company

match on your 401(k) or other work plan. If you do not want to

be a millionaire, this is obviously critical to avoid.

Free money is going to double what you'd otherwise have saved

up. Again one of the largest traps when trying to not be a

millionaire.

Number three was Rushing Past the Roth. Roth IRAs and Roth

401(k)s grow completely tax free. What a disaster. What

better way to not be a millionaire then by paying as

much tax as you possibly can. The growth will likely be much

more long term than your actual contributions so by avoiding the

Roth we can ensure all of this growth can be fully taxable.

Disinterested In Disability came in at number four. Who wants to

think about becoming disabled? That's no fun. While avoiding

thinking about something unpleasant, we can also help

ourselves to not be a millionaire. For a young family,

your future income potential is your greatest asset. If you make

$100,000 now, then over the next 30 years at 2% wage growth, you

would bring in over $4 million. A huge asset that is exposed by

not having disability insurance protection. Being more likely to

occur during your working years then death, being disinterested

in disability can certainly be a great way to not be a millionaire.

Next step was Budgeting Backwards at number five. By

only saving what may be left at the end of the month, you can

put yourself in a great position to have nothing left at all to

save, pushing you further away from millionaire-hood and

overall wealth. If you were to actually save first when getting

your paycheck and then only spend what was left you would

put yourself in a position of excellent consistent savings.

Certainly something you want to avoid if you do not want to be a

millionaire.

Piggybacking on number four Pretending You Can't Die is

another great way to risk your largest asset as a young person.

That future income earning potential by not having proper

life insurance coverage. Who cares if your family may have to

sell their home and miss out on their goals? Certainly not

someone who does not want to be a millionaire that too.

Blowing the Bonus comes in at number seven. This is another

great way to not to be a millionaire because it pushes

down your wealth in two ways simultaneously. By treating your

bonus or tax refund for that matter as free found money that

you can spend guilt free, you can not only avoid potentially

huge long term future investment growth and wealth creation, but

you can also raise up your standard of living, making it

more difficult to retire down the road. A $5,000 bonus for 35

years is $175,000. A saved $5,000 a year bonus growing at

10% for those same 35 years is over $1.3 million. Over a $1

million difference that any person who does not want to be a

millionaire should certainly want to avoid.

Number eight is Getting Good Debt Gone. By paying down lower

interest rates, student loans or mortgage debt, we can shun the

opportunity cost of investing that money instead. If an

investment makes 7% long term and your mortgage is at 3%,

saving 3% instead of making, in this example, 7% can potentially

be a great way of not being a millionaire. Furthermore, by

putting more money into an illiquid assets, such as a home,

if we were to lose our job or have some other financial

hardship, we would be more likely to have to immediately

sell our home with more money tied up in this illiquid asset.

Again, likely a great way to maybe not be a millionaire.

Almost rounding us out here at number nine, Saving For College

Over Retirement can be an especially clever way of helping

us to not be a millionaire. We love our kids and want to help

so there are great emotional ties that can help us save for

something like college, which loans are available for end

which we can help our children instead make more manageable

payments down the road versus saving more for retirement,

which loans are not available for at all, potentially putting

ourselves in a much more difficult position where college

is paid for and we do not have enough to meet our own

retirement needs.

Last on our list number 10 is Living For Lifestyle. Why this

is such a great way to help you to not be a millionaire is that

it's so much fun! Spending a greater percentage on our budget

on cars and houses and other shiny objects can feel great and

simultaneously, it can push us farther away from being

millionaires. Spending just an extra $500 a month on lifestyle

items or saving that same $500 a month towards ourselves for 30

years would grow to over $1.1 million, assuming a 10% example

rate of return. Once again, if you do not want to be a

millionaire something again to be avoiding.

So that is it for our recap. Hopefully you can connect with a

number of these items because you know, obviously no one

really wants to be financially insecure. So ask yourself, do

you save everything that you can? A few $100 can mean

hundreds of 1000s of dollars down the road. Do you have

sufficient life and disability insurance? If not, you have

millions of dollars in future income earnings unprotected

along with your family's welfare. What do you do with

your tax refund or your bonus every year? Do you treat it as

free money or do you treat it as a way to supercharge your

wealth? Do you take advantage of your company's match? How about

the tax free growth of a Roth IRA or Roth 401(k)? Do you focus

on saving interest on your loans by trying to pay them off early,

regardless if they're a mortgage or a student loan or something

that has a tax advantaged interest rate to it? Or do you

focus your extra money on actually creating new wealth?

Wealth is what you have what you save and grow not what you make.

A $1 million portfolio generates $40,000 a year using the rule of

thumb 4% in retirement. Those are the rule of thumb what I can

withdraw from my retirement portfolio. Are you on track when

you look at $1 million equates to $40,000 a year? Are you on

track to have enough for your own retirement needs?

For our next series to come, I'm jumping back into the more

serious side of things. No more stories, no more game show

announcer voice. 2022 has been one of the most tumultuous years

on record with the main driver being sharply rising interest

rates. As of the time of this recording both the global equity

market so the MSCI ACWI IMI not for you, but specifically for

compliance purposes, and the global bond market, Barclays

Multiverse again specifically for those great folks over at

compliance. So both the global equity and global bond market

are down over 20% on the year. An unheard of occurrence really

in our lifetimes.

So I'm going to remix a number of my past episodes that may be

particularly helpful with what is going on right now. Episodes

to help keep us all on the right track with a healthy mindset and

perspective. We're going to call it the REMIX For Rising Rates

series. So make sure to check it out.

We really live in just a completely amazing time where I

can jump on here, grab a microphone and connect with you

in this way. So if you can take it and run with it, great,

fantastic. If you take one step forward and feel good about it,

then I'm happy. This is what I'm doing here. This is why I'm here

to record all these to help you guys out there. If it feels

overwhelming, though, if you have questions or just want

someone else to kind of help you get all this stuff in order, so

you don't have to know exactly where you're going and what path

you're on by yourself. Head on over to our website at

enjoymore30s.com. That's enjoymore30s.com. Click Ask Joe

to connect or you can just reach out to me directly using my

wealth management firm New Horizons Wealth Management at

nhwmllc.com. I probably have helped someone just like you. So

thanks so much for joining me today and I cannot wait to

connect with you again in the series to come.

The conversations on this show are

Joe's opinions and provided for general information purposes

only. They do not constitute accounting, legal, tax, or other

professional advice for your specific situation. You should

always seek appropriate advice from a financial advisor,

accountant, lawyer, or other professional before acting upon

any content or information found here first. Joe is affiliated

with New Horizons Wealth Management LLC, a branch office

of TFS Securities, Inc., and TFS Advisory Services an SEC

Registered Investment Advisor, Member FINRA/SIPC.