Okay I know this is going to get me some very negative comments from folks who don’t bother reading this but it will just showcase that some people shoot off their opinion first and worry about the facts later!
My first comment is that in a country of 330 Million you will find a few hard luck stories that are the exception to my thought however this is being written to the masses!
Let me start off by dispelling a myth that certain people portray to make you feel bad. There are only a few wealthy people in America and they don’t pay their fair share. There are a few people in America who are super wealthy. Some are very public figures like Bill Gates, Warren Buffet and Donald Trump to name a few. Notice I called these folks super wealthy. Let’s be honest the amount of taxes they pay in a year are more than most of us will make in a lifetime!
So let’s get to you and me. Have you ever really thought about what constitutes a wealthy person? Now I mentor a lot of people and I haven’t really come across anyone that can define wealth, until I heard a rich man’s seminar recently. Simply defined the crossover point from poor to wealthy occurs when your assets are larger than your debts. That’s it!
So to find out if you are wealthy or not, simply look at eveything you own or are in the process of paying off. I suggest you start figuring out your debt first.
What are the balances on your credit cards, loans, and mortgage(s). Total them up and this is what you owe. Next step is to figure out your Net Assets. Total up the value of your bank accounts, your house (if you have one), your retirement funds (IRA’s, CD’s, 401K’s), and any other items you could resell (vehicles, precious medals, art etc…).
Now comes the best part subtract the debt from the Net assets and you will know where you stand!
- If you are worth more than you owe, congratulations, you are wealthy!
- If you owe more than you are worth, congratulations, you now know how much you need to become wealthy!
Once again the magic happens when you are one dollar over in worth versus debt.
In the next segment I will talk more about the magic!
