It may be difficult to teach a dog new tricks but not impossible if they’re up for the challenge!
The beauty about us animals and mammals is that if we are willing to change due to tough circumstances, we will find a way!
If there’s a will, there’s certainly a way!
Although savings rates have quickly plummeted back to record low levels of around 5% down from a whooping 50% when the virus first struck the states in March 2020, Americans somehow reversed their spending and savings levels virtually overnight!
This is a safe sign Americans’ finances are sturdier than we initially thought, or at least what the media portrays. If you can decrease spending by more than 20% in a few weeks, you have decent control over your investments, a sizable cash cushion and disposable income sources on hand to tap into. Financially at least 50% of the American population may be out of the woods but collectively our mental and physical health needs some major repairing in the new year.
Speaking of getting our bodies in shape as the most popular new year’s resolution comes into high gear, there’s also a habit most of us, especially my generation, would be better off breaking.
If you’re brave enough to confess it earlier than later, you’ll save yourself mentally, physically, and financially too down the line!
Drum roll please.. the worst financial habit Americans never seem to be able to break is spending more than they save. It’s quite an obvious one to no one’s surprise but more prevalent than ever before as “buy now pay later’ options, flexible spending, an abundance of attractive credit card options, payday loans, and cheap borrowing rates the past 2 years have catapulted Americans out of the couch onto their feet to end up spending the most they ever have in 41 years and on more than they can afford!
Hoarders & Mansions?
At least in the states, everything seems to be getting bigger but certainly not always better. We want more because people on the big screen have it. The Kardashians flaunt it because they have to. It’s their job after all!
We are blindsided believing the grass is greener on the other side when in reality, we truly don’t know what it’s like in Kim K or Giselle’s life until we try it ourselves! We will forever want what others have until we see it for ourselves. Get a taste of reality to sense the fame.
It’s not as glamorous and incredible as we may think, especially as we see from the outside that people who do seem to have it all still feel unfulfilled, empty, and discontent with all of it so be grateful for what you have and stop complaining for goodness sakes! All internal work is required.
Minimalism & Stealth Wealth Focus
The next step to combatting FOMO and feelings of inadequacy which comes in hand with becoming more grateful for the irreplacable things in life is to focus on the mantra, less is more.
Minimalism and stealth wealth habits don’t come naturally to most people. It was probably an easier lifestyle choice to make pre-the dotcom social media era when you didn’t have access to strangers’ filtered photoshoped lives every second.
Better to stick to the present, drop the phone, and focus on consuming less producing more to make happiness a choice not a purchase. Minimalism is a lifestyle that can truly change your life forever since at the end of the day, it’s not what you earn but how much you keep that makes the difference, especially if you live in tight quarters in NYC!
It’s worth remembering that lottery winners are sadly as likely to become broke as those who don’t win due to their false beliefs, assumptions, and reliance on the lump sum to magically bring about purpose instead of focusing on hard work, habits, and passion cultivated inside.
Nothing can replace what you’ve worked so diligently for. Money will only provide a certain level of baseline happiness, security, and comfort. The rest is up to you. Once a certain research-backed income is met around $75k, roughly around $90k nowadays due to rampant inflation in the states, it’s up to you to make a difference, appreciate what you have, invest at least 20% of it, save as much as 40% of it, and supply the rest to necessities and staples that you need today to live a healthier more peaceful life tomorrow.
The real fruits and joys of life come from what cannot be replaced or purchased so dig into those valuables to not live on the edge, build a more stable cash cushion and continuously invest in yourself so next time a Fed-induced recession hits, presumably sometime in the end of Q1-Q2 ’23, you’ll be living life while the rest of Americans have to hunker down, cut their spending by 70% and feel the pinch right away.
Don’t live in absolutes or the extremes. Know the amount of risk you can stomach appropriately. After all, you know you’re truly wealthy when you don’t have to sacrifice or shift your entire lifestyle around when unexpected headwinds come around.
In the meantime, while you set your intentions for the year, see what you can cut out without going insane. There’s no point in earning if you won’t spend it and improve your life right?
So let’s make 2023 a memorable one and hopefully the bullish Wall Street forecasts on the street do come true to recoup 2022’s losses.
See you around the corner! I hope you all have a prosperous and joyous new year!