Spending money does not equal wealth.

• Let's say between a little bit of a fancier car, larger house and other great lifestyle items, we can increase our spending by $500 a month. (01:45)
• And so for example, we can help ourselves miss out on an extra $500 a month savings for say the next 30 years, which if it grew at an assumed 10% would come out to over $1.1 million. (02:08)
• Furthermore, if the $400,000 earner is saving $60,000, that means they are living on the other $340,000 a year. When they retire will they want to give up all those great lifestyle items they have grown accustomed to over the last 30 years? (03:25)

Quote for the episode: "And so instead of believing spending money means that you have wealth, you can instead take on the mantra of "it is not about how much you make, it is about how much you save." (02:39)

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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.

Hello, and welcome to the Enjoy More 30s Family

Finance podcast for all those people out there trying to avoid

being financially secure, well we have our series for you 10

Ways To Not Be a Millionaire. Now if you actually do want to

be a millionaire not to worry. This series isn't just for those

people who are looking for some kind of financial ruin. If you

avoid doing these 10 things and you could be well on your way to

millionaire-hood as well. Each week I'll share a quick step in

this how to not be a millionaire process so you know what to do

or hopefully what to avoid at all costs. As always, before I

begin, please share and like please leave reviews. I'd love

to reach and help as many young families out there just like you.

Today's great tip on how to not be a millionaire is Living For

Lifestyle. I save this one for last because it is by far the

easiest and most fun way to not be a millionaire. Ever hear

someone say so and so is, "doing well" or is "well off" or is

"making good money", and then proceed to rattle off a bunch of

things they spent money on like home renovations, expensive

vacations, or fancy cars to prove their point. This is a

great way to fool ourselves into believing that spending money

means that you have wealth. The more we can convince ourselves

of this point, the farther away from being a millionaire we can

go. Let's say between a little bit of a fancier car, larger

house and other great lifestyle items, we can increase our

spending by $500 a month. Doesn't sound like too too much

but let's just see how much this can help us not be a

millionaire. If we are spending the extra $500 a month, that

means we cannot save the extra $500 a month. And so for

example, we can help ourselves miss out on an extra $500 a

month savings for say the next 30 years, which if it grew at an

assumed 10% would come out to over $1.1 million. If you do not

want to be a millionaire, you can see just how important extra

lifestyle spending can be to avoid millionaire-hood. If

however you do want to be a millionaire, you can see just

how far extra savings can go. And so instead of believing

spending money means that you have wealth, you can instead

take on the mantra of "it is not about how much you make, it is

about how much you save." If you make $400,000 a year in wages

and save $60,000 a year of that you are saving 15%. If you make

much less, let's say $100,000 a year in wages, and save $20,000

a year you are saving 20%. You are making less, saving less but

because you are saving a larger percentage of your income, you

would likely be at a much better path towards accomplishing your

goals. Furthermore, if the $400,000 earner is saving

$60,000, that means they are living on the other $340,000 a

year. When they retire will they want to give up all those great

lifestyle items they have grown accustomed to over the last 30

years? Of course not. That is a lot of money to have to replace

in retirement. The $100,000 earner has to only replace

$80,000 after accounting for that $20,000 a year of savings.

A much easier task, with Social Security likely covering 50% or

more of it for them already. Overall, I think it is more than

clear, Living For Lifestyle is a fantastic way to not be a millionaire.

Thanks for tuning in today and join us for next week's series

recap of how to not be a millionaire, where we will

highlight all these wonderful tips and tricks to not be a

millionaire. And I suppose if you actually do want to be a

millionaire, well then you can go ahead and have a great list

of things that you should do the exact opposite of instead. As

always, please remember to review and share for others. And

if you need any help, don't hesitate in reaching out. I

probably have helped someone just like you. Until next week.

Thanks for joining me today and I look forward to connecting

with you again soon.

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.