WHICH WOULD YOU RATHER BE: A CONSUMER OR A WEALTH BUILDER?
|Consumer: Comes from the word, "consume." Webster defines it as "to take, to do away with completely...to spend wastefully...to squander." The term implies that our purpose in life is to consume! ||Wealth Builder: Lives well below their means. They save an average of 15% to 20% of their annual income. They allocate time, energy, and money efficiently – in ways conducive to building wealth.|
|Buys items on credit. Not only pays exorbitant interest charges but spends over twice as much (112%) as someone who pays cash for purchases.||Buys everything with cash. Often receives a significant discount for using cash. If the funds aren't there, they either do without the item or wait until they have they money.|
|Buys on impulse. Their attic/closet/garage is full of last year's impulse purchases. These items either end up getting rhrown away or sold at a garage sale for pennies on the dollar.||Plans purchases and considers the impact on wealth building goals. Buys items that "consumers" sell at garage sales for pennies on the dollar.|
|Spends every penny earned each month. Stresses over the fact they aren't making enough money.||Lives on significantly less than they make. Saves a large portion of their income every month.|
|Influenced by peer pressure ("keeping up with the Kardashians"). Believes displaying social status is important to financial independence. Buys a bigger home, new cars, expensive clothing – all to appear affluent and successful. Lies awake at night worrying about money and how they'll pay their credit card and other bills.||Believes true net worth is more important than social status. Pays no attention to the "Kardashians." All purchases are based on value, rather than appearance. Also believes living a fulfilling, stress-free life is more important than the "status quo" or the media's version of success.|
|Spends little or no time on establishing a wealth building/retirement plan. Plays the lottery in the desperate hope of striking it rich someday.||Spends a significant amount of time planning their financial future. Has specific wealth-building goals and has a sound investment plan to reach those goals.|
Article contributed by Wendy Lyon. Come hear Wendy speak at the 4th Annual New Year, New You Conference and Fundraiser to Fight Human Trafficking. Register today!