3 Reasons Why Wealth Matters
Updated: Apr 4
Wealth is such an essential piece of life. Having wealth matters because it can alter the course of your life. We will have to pay bills for the rest of our adult lives. So, I want to give you practical money advice on why wealth matters. In the title, I said that money matters despite your race. There are many sources of information on websites about America’s wealth gap and why it matters.
In this article, I want to start from the beginning. I want you to understand how important money is to your life. We need money to do almost anything: pay our bills, take care of our family, or enjoy a fun night out with friends. Before you get uncomfortable, this will not be a hustle and grind until you are exhausted by a blog post. I am not here to teach you to be like the hustle culture. Instead, I am here to guide you to be intentional and add perspective to your next paycheck.
Having Wealth Matters
Having Wealth Matters and Money Facts In The U.S.
To understand why having money matters, we must look at the facts. What is the current financial climate in America, and how does the average family live? According to debt.org, “American household debt hit a record $14.6 trillion in the spring of 2021, according to the Federal Reserve. If you had to write that check, it would read $14,600,000,000,000.” This amount of money would be between 340 million people.
“The average American has $90,460 in debt“, according to a 2021 CNBC report.” That included all types of consumer debt products. The data came from credit cards to personal loans, mortgages, and student debt. “Lastly, around 64% of Americans live paycheck to paycheck, according to a May 2022 LendingClub survey. “ Having wealth matters because most Americans are in the balance to where it would take one emergency for us to fall behind.
Why Does Wealth Matter To Me?
Wealth can mean a few things to me; it comes down to three things. Having Wealth matters because it affects these three categories: freedom, access, and comfort. Being wealthy can mean much freedom—for example, the space not to work a job. But the freedom to do other activities you may be interested in.
You can volunteer and make a difference, live out your wildest dream, and start a hobby that makes you happy. Or live a more fulfilling and joyful life without staring at the clock when you are worried about a busy schedule.
Wealth also means the ability to access more depending on your own money. For example, you can access better schools and neighborhoods to live in for your family. In addition, wealthy people can make laws and enact the policies they want.
You can access better health by affording healthier food. In addition, you can take better care of yourself when you have enough money to plan your schedule, whether taking a few months off work or finding a job that fits your lifestyle.
Wealth can also bring you comfort. You can be comfortable enough not to worry about unexpected bills or charges and to have a home that you love.
Or create a welcoming environment for yourself. For example, you can find comfort in knowing that if you lose your job, you will have all the time you need to find something new if you want. Or you could be comfortable enough to buy the item you need without going into debt.
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Having Wealth Matters. What Can I Do To Start A Wealth Journey?
Having wealth matters so you can break free from debt. One of the first steps to building wealth is ending debt as much as possible. We must remember that buying anything on a credit line takes more money from us than the actual item cost, causing us to pay in monthly payments.
The Bible says in Proverbs 22:7, “The rich rules over the poor, and the borrower is a servant to the lender.” Usually, we do not consider ourselves servants to anything. But we can be servants to many things, including our mindsets. We can be servants to something even if it is not tangible.
There are many ways to start getting out of debt. The two most popular methods are the snowball and avalanche methods. The Avalanche is my favorite because it is faster. However, I would only recommend it for those who have curbed their appetite for spending first.
The second essential thing is budgeting. You need a clear vision of your money and where it goes. A budgeting book is excellent for helping you keep track of monthly bills. Every paycheck, you want to sit down and decide what bills will get paid and what you will do with the extra money.
If you don’t have extra cash, this is the best time to see if you have wiggle room to find at least 20 dollars. Or more to start paying off any debt if you have any outstanding balance. Or cut down unneeded bills like subscription services.
After you determine how much money is for accounts. You can consider the extra money for different things, such as investing, debt payoff, and sinking funds. A sinking fund is an account to save money for events that may come up, such as Christmas, Vacation, or savings for a new item.
One thing that helps us keep more money is curbing our spending. It is easy to manage our money if we do not fall into a consumerism trap. Advertising and trends are everywhere we go. You could practice minimalism, a new trending topic, but I focus on buying what I need.
I also set aside fun money to buy things I want every month, which keeps me at a reasonable amount. However, the best book I read that put purchases into perspective was “Your Money or Your Life,” by Vicki Robin. This book teaches you that we trade our life energy or time for money.
Wealth matters, so before you consider your next buy, ask yourself how many hours you would have to work to buy this unit. This method helps bring perspective to your purchases and enables you to determine if they are worth the cost. This method is beneficial for big purchases such as electronics.
The last thing you can do is find a way to make your money work through the magic of passive income. Passive income is making money without much effort, unlike working a job. Some examples of passive income are a business, investing money, and real estate.
Some passive income has excellent tax benefits and can help you grow your income. Once you increase your revenue, you can have comfort, freedom, and access. To do with it whatever you may please.
I would tell you to spend some time learning about passive income. Then, you can see how you can generate it if you don’t have investment income. You can also read about other techniques I mentioned to help you on your wealth journey. Practicing anything we want to do makes perfect. Check out the link below to purchase our Debt Payoff tracker.
Your Wealth Matters, Despite Your Color
I hope you now understand why wealth matters. Wealth is for anybody, no matter the race, but it will be for those who are intentional. The Bible tells a story in the chapter of Matthew about a master who left talents to his servants. The servant that took what they had and multiplied it was good and faithful. You can see this story as money, gifts, or other aspects.
One way to think about it is in the element of money. The love of money is the root of all evil, but stewarding it is not. The Bible says in Proverbs 13:22, “A good man leaves an inheritance to his children’s children.”
So, I want to inspire you to be intentional with your money and find your way to decide why having wealth matters to you. Wealth brings us more peace of mind and lets us focus on what matters. If you enjoyed this article, check out the next one, “How To Budget Your Money To Reduce Debt.“
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