Good morning everyone! I hope this week has treated you well amongst the growing civil turmoil in the United States of America. Although it is necessary to discuss what is happening, I lack the knowledge and awareness of the situation. However, I will be talking about what’s lately on my mind—the notion of quick versus slow financial success. I know there are countless, more credible blogs or articles discussing financial topics. Still, I will be sharing personal anecdotes, knowledge, humor, and ranting to bring an essential issue to light.
With the increasingly accessible stock market knowledge and countless “get rich” schemes, I’ve grown tired of unnecessary comments from individuals who believe they know all and annoy you to jump on the next trend. I understand and appreciate where they are all coming from, but what they suggest is an unknown market to me. It’s important to know where your money is going and how it will benefit or hinder your financial success. I was having lunch with a dear friend the other day, and the conversation led to passive economic growth. We shared knowledge, but I also indicated that my strategy for financial success is long-term.
I’d choose a slow but foolproof way to increase my assets. Believe me. It’s difficult not to join the quick-money stocks or schemes, especially when society shoves down our throats to live a certain way. It’s also important to know that 1% of America’s wealthy individuals come from generational wealth. Unless you are the next Elon Musk or Bill Gates; otherwise, trying to chase after the “big money” will only leave you continually chasing after a figment of wealth. I’m not saying you can’t have that wealth, but it’s an important reminder that what you are building can be for future generations. According to Census Bureau, the median household income in 2019 was $68,703, increasing from $64,324 in 2018. This small amount may not be much, but adequately managed will become a great asset for your children or family.
However, let’s talk about quick financial success and the implications I believe it can cause. An example, let’s break down what happens to lottery winners.
According to the National Endowment for Financial Education, about 70 percent of people who win a lottery or receive a large windfall go bankrupt in a few years.Loewenstein, George. “Five Myths About the Lottery.”
Why is this the case? Amongst a myriad of legalities, an individual without having a firm grasp of finances that come into a large sum of money will spend more than they should. Of course, it’s not entirely their fault, but financial literacy is a difficult topic to understand. This is why chasing quick money will result in temporary gains. Besides, lottery winners don’t take the full amount of winnings. A good amount goes to the IRS and state taxes, but who wouldn’t want to give a fair share of their winnings to close friends and family? Next thing you know, they are buying a mansion, boat, or a luxury car. They aren’t friendly to their “wallet” at all.
I’ve had a fair share of individuals close to me find money through gambling or “trend-investing,” yet unable to visualize a long-term financial target. I’m not a financial specialist whatsoever, but I am tired of being bombarded with “invest in this, monetize this, or do that,” all to make a quick buck. It goes without saying that no one will fully understand your personal and financial goals, which is why it’s crucial to evaluate yourself first. I think it’s safe to say financial planners would tell you the same. I know this was a somewhat informational rant, so thank you to those who took the time to read this