Do you prioritize materialism or financial independence?
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Around 85% of people manage a car note.
Yet according to Yahoo Finance, 78% of Americans have less than $50,000 saved for retirement.
What does this tell you?
People are prioritizing buying cars over saving for retirement.
But the car is symbolic.
The car represents all the things we spend our money on that don’t really matter and detract from our financial well-being.
Three primary reasons people don’t prioritize saving for retirement:
- They don’t prioritize long-term over short-term outcomes.
- They believe Social Security (or something) will save them.
- They live in the moment.
Notice that I didn’t put a lack of education here.
Many people know that if they don’t save, they won’t have any savings. You don’t need to be intelligent or amass significant education to understand this.
If you come from an economically disadvantaged background, you tend to fall into one of two categories:
Those who want to better their financial outcomes tend to do so.
Those who accept their financial outcomes and don’t take action to change them.
Which category do you fall into?
X Will Financially Provide For Me
One reason people delay investing is that they believe someone or something else will save them. They relinquish control of their financial future.
We pay taxes into Social Security, but no one really knows if it will exist decades from now.
Some people enslave themselves to a job they hate for a guaranteed pension.
Some people rely on family or a spouse to care for them financially.
There is never a guarantee that someone or something else will care for you financially, so you shouldn’t plan on it.
Instead, create a nest egg for yourself by practicing the art of saving and investing. By saving and investing, you are taking control of your present and future financial affairs.
Living In The Moment
A majority of society is overweight.
A majority of society is in debt.
Most people watch hours of television or scroll social media or the internet for extended periods.
We’ve become dopamine addicts. We want to feel good. We want to live in the moment.
The problem with these desires is that they prevent us from tapping into our highest productivity levels.
If you always live in the moment, you will never take time to prepare for the future.
In Summary
The more you invest in things, the more you delay financial independence. This is not to say you should not enjoy life, amass beautiful experiences, and live in the moment; it’s about balance. But one will ensure you can always do the other.
Materialism will keep you broke if you prioritize it over investing, saving, and living below your means.
If you prioritize investing before materialistic behaviors, you will be able to fund many of your materialistic pursuits indefinitely (depending on how aggressively you invest).
It may hurt in the short-term, but you pay infinitely in the long-term.
I didn’t start taking my biggest trips until after 7-10 years post college. After I focused on saving, investing, stockpiling, and building more stabilized income.
And I won’t take my biggest trips probably for a little longer.
Why?
I still need to focus on saving and investing.
One of the most dangerous things you can do for your wealth once you start building is to start spending it.
Save. Invest. And continue the process.
Do not dip into your savings.
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.