Do you believe that $100,000 is a lot of money? Can you envision you would ever have this amount of money in your high-yield savings account?
If you think this is a lot of money, that is your first limiting belief. If you do not believe you can save $100,000, that is your second limiting belief.
The only thing preventing you from saving $100,000 is your mindset. Sure, you can blame things like wage growth (or lack thereof), housing costs, inflation, and financial education (or lack thereof), but it is your mindset.
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I used to be like you. In May 2019, I was heading into my dream promotion as a Master Gunnery Sergeant (E-9) in the United States Marine Corps.
It took me 20 years to achieve this rank, and I had plans for my financial future. My goal was to save $3,500 in my checking, $15,000 in my savings, and $3,500 in my emergency savings—a total of $21,000.
When I wrote my dream down in May 2019, I had $1,000 in savings and $70,000 in debt. The thought of having $15,000 in savings was unfathomable.
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As I write this, in May 2023, I have $300,000 in the bank exactly four years later. So, what changed over these last four years? My mindset.
It’s the journey, not the destination. I have read over 140 books over the last four years. I write and post a book review for each (view them here).
The exciting part of life is the journey. It’s not having $100,000 in the bank that is interesting, but the person you become to get there.
I am not the same person I was in May 2019. The old version of me had a scarcity mindset. He believed working for the government, climbing the corporate ladder, and saving 5% was the way to financial freedom.
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Over the last four years, I have had a complete shift in perspective from a fixed mindset to a growth mindset (from the book “Mindset”).
What are your limiting beliefs about money? Your limiting beliefs about money are the reason why you struggle today.
You probably believe that there is a limited amount of money in the world, and only an elite class of people (who have wealthy parents) have access to this wealth.
You got this belief system from your parents. The media keeps this scarcity mindset going by telling you that 1% of the population has all the wealth—and they are right.
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However, you can build the mindset of a 1%. Due to your start in life, you may not achieve great wealth (say $5 million), but you can undoubtedly obtain over $1 million.
Becoming the top 1% in life. The only difference between the rich and the poor is how they spend their free time.
How do you spend your free time? You work 40 hours a week at your day job and sleep and relax for 56 hours a week. That leaves 72 hours to create something.
If you are making excuses right now, you are not a one-percenter. That’s the difference between you and me.
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I used to make excuses about being tired and having to maintain my family time. That’s right; I have a full-on family.
I have a wife of 17 years and two boys, ages 16 and 12. I had to find the time to become great. I wake up in the middle of the night to write articles and publish books.
Intense focus leads to out-worldly results. I haven’t made much money from my books, but every day I focus on writing about finances.
This focus helps me see my financial life very clearly. Over the years, we have accumulated three homes, raised rents, invested in dividends, and started businesses.
For these reasons, we amassed $100,000 in our accounts under two years after beginning our journey.
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We simply wanted to change our financial destiny. I look at my parents and don’t want their financial future. I want more from life.
I dream of my wife, kids, and grandkids traveling the world and enjoying sunny days on the beaches of the Mediterranean.
What is your rich life? Most of us don’t dream big; that’s why we fail. We get a $2,500 monthly social security check and live under that amount. Sad.
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1) Dream big. Say you want to take your family of 10 on a Disney cruise every year, and you want to pay for everything.
2) Put a price on it. This trip costs $30,000 per year. So, you want to make $30,000 per year in passive income to pay for the trip.
3) Split it up. How much is $30,000 per year equal to per month? $2,500. You must earn $2,500 in passive income to cover your annual trip.
4) Get to work. This is the part where everyone fails—getting started. Start simply. How about getting a roommate for $800/month? Or rent your car for $500/month.
The mindset to save $100,000. You will take massive action when your dreams become the most critical thing in your life.
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I wake up daily with a burning desire to free my family from a debt-filled future. I don’t want my sons to accumulate debt because I didn’t push myself hard enough.
How hard are you willing to push yourself? There is a reason only 1% of the people have the most wealth.
The power of compounding. Here is the secret to wealth—compounding does most of the work for you.
The longer you can keep an asset, the more it compounds in your favor. The rich pass assets down from generation to generation, keeping the compound effect in motion.
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Did you buy your first house? So did I. I also already own a home for my two sons. Therefore, their real estate assets already compound in their favor, even at ages 16 and 12.
To save $100,000, you must do it for a reason greater than yourself. Once you put people first, it is easy to sacrifice your time for the greater good.
Conclusion. Again I ask, how do you spend your free time? Do you read financial mindset, investing, and business books?
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Do you write, draw, record, video, publish, or photograph? Do you budget relentlessly and enact ways to create more cash flow?
Or do you binge-watch Netflix, complain about the government, and wait for stimulus checks? It’s all up to you.
I grew up poor. Now, I make more money than I can spend. Due to compounding, my book royalties keep increasing, along with rents and dividends.
I put the power of compounding in my favor by taking action. My season of savings (four years) ensures my family will be good for generations. But it started with a dream. Good Luck!
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