The 27th of every month you can hear me grumbling a little bit. At some point on that day, I will be paying my bills.
- Mortgage
- Childcare
- Electric
- Water
- Cable . . .
I have a checklist to hit every one.
They go out via my bank’s Bill Pay (what’s bill pay- click here not endorsed by IFS)
Then registered in my quicken.
I keep track, I am never late. I never miss payment.
I am great at paying my bills.
Who Cares?
News Flash! Paying my bills does not make me great with money.
It does prove that I can follow a schedule and keep track of money. Goooo Me!
But that’s about it.
Yes, it does prevent other issues, like debt from piling up, so it’s important but it is not the key to financial success.
It’s more of a by product of getting older, becoming an adult and taking responsibility for my actions.
I will continue to pay my bills and you should too.
The Key to Financial Success
If paying my bills on time is not the key to financial success, what is?
The answer is:
LIVING BELOW YOUR MEANS AND ACCUMULATING WEALTH.
You see the ultimate goal is not to be able to pay bills, but to actually have money left over at the end of the month, to save and invest for your future.
If every dollar you earn goes to paying bills, you my friend are not wealthy or successful and will never be able to get out of the rat race.. You will continue to have to earn to pay, earn to pay, earn to pay…never ending…
The truth
We all go through life seeing people driving fancy cars, wearing fancy clothes and living in big houses.
It’s normal to get a little jealous.
But, the sooner you realize that not all of those people are wealthy, the better off you will be.
You have to understand that some of those people are just good at paying bills too.
And they have chosen to have higher bills than you.
True wealth comes from accumulating assets that will help you accomplish your goals and objectives. (cars, clothes and overly big houses do not)
To put it another way, most people think that your income determines your wealth. I say B***Sh** on that!
I have some clients that earn over $300,000 and have a hard time saving a penny and other clients making around $100,000 who are able to maximize their retirement accounts.
You tell me who is more wealthy?
What is true wealth?
What most enlightened people consider as wealth has nothing to do with money. Seeking true wealth may mean seeking deeper relationships, more personal growth, or ways to create more meaning in life. Achieving true wealth means possessing the ability to enjoy the small, ordinary pleasures of life.
( https://www.quora.com/How-would-you-define-true-wealth not endorsed by IFS)
This a wonderful definition-but unfortunately not everyone can grasp this concept.
So, in financial planning you are truly wealthy if:
- you have enough money in the bank to protect against any unforeseen emergency
- you have the ability to send your children to a college of their choice
- you are able to make large purchases in the future that improve your quality of life
- you are on track to reach financial independence, whereby working is optional not required
Accomplishing these 4 things over your life time are the true measure of wealth in my opinion.
Sum Up
Yes, keep paying your bills, but more importantly take control of your financial future and stop living month to month. Paint a picture of what true wealth is to you and figure out a way to get there. I am sure just paying your bills on time will not be the solution!
As always, you can consult with me to discuss your current financial situation
Look for future posts on investing and financial planning. Check out my recent post on retirement income planning 2.0!
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Thanks for stopping by and I hope you achieve financial success!
