Should I Focus On Making As Much Money As Possible?

“It’s not how much money you make, but how much money you keep.” This quote by Robert Kiyosaki made me realise that most people’s approach to money and their finances is wrong. Most people focus on making more money. That’s all they focus on. They’re looking for a raise, or a promotion, or a bonus. They’re simply looking to get more money in their bank accounts. You might be thinking to yourself, what’s wrong with that? After all, a pay rise is a good thing, right? Yes, a pay rise is definitely a good thing, but focusing on making more money is the wrong mindset. Here’s why: Most people, when they make more money, simply buy more stuff. It’s easy to get carried away. Once you make more money, you want to upgrade your car to a nicer, more sleek, more luxurious model. Once you get another pay rise, you’ll want a bigger house to compensate. Another pay rise means you get to buy another car, or boat, or motorcycle. It’s a vicious cycle of “Keeping up with the Joneses”. And how do you finance your purchases? Probably using debt. So soon your debt starts to accumulate, and accumulate, and accumulate. Your stress levels increase because you know that as soon as you lose your job, you will be living in hell. You’ll lose your grandiose house, your luxurious sports car, and everything else you’ve accumulated to then. You’ve never realised it until now. All your life, you’ve been working for money. You’ve been working to accumulate stuff. You’ve never been accumulating any wealth. This is a very common phenomenon. People confuse money with wealth. But making a lot of money does not mean you are wealthy. Once your income goes, so does everything you own. So what should I focus on, if not money? Instead of solely focusing on how you can get the next pay rise, focus on where you’re spending your money. What are you doing with your income? Are you buying assets, things that will increase in value over time and possibly make money for you, or are you buying liabilities? People who earn a high income are not wealthy. Only those who own assets are wealthy. Assets like land, buildings, patents, royalties, and stocks to name a few. These assets typically increase in value over time, and the best assets even make money for you. For example, JK Rowling made a reported $54 Million in 2018 according to Forbes. As your income increases, you should put more and more of your attention to how you’re spending your income. If you keep buying liabilities like flashy cars or expensive suits, then you’re never going to be wealthy. But if instead you choose to buy assets like real estate and businesses, then you can become wealthy even if your income isn’t all that impressive. Maybe someday, when you’re in your 40s or 50s, the income from your income-producing assets will become greater than your paycheck, giving you the opportunity to retire from a 9-5 job and still receive income. Wouldn’t that be nice? This isn’t just a dream, it can be reality. You just have to make the right choice. So in conclusion, focusing on a bigger paycheck is only one half of the story. And it’s not even the important half. Instead, you should focus more on where you’re putting that money. The thing that you should be most concerned about is where you’re spending your money.

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