Updated: Feb 27, 2021
Are you ready to finally build your fortune? There’s currently a shortage of black millionaires in the U.S. and Wealth Legion wants you to be the next one. According to the Washington Post, black families have 10 times less net worth than white families and the gap is growing. Keep in mind this isn’t us versus them. It’s us versus us. We can all do better and that’s why Wealth Legion is here. If you're reading this, you have all the potential and ability you need to be the next millionaire. The question is, how bad do you want it?
Whether you decide to commit to financial freedom is up to you. Either way, I’m here to teach you valuable financial skills that will last a lifetime. The first thing we need to do is upgrade your mental software. Let’s get started.
Do you consider yourself a saver? Do you have $500 saved in the bank? How about $1000 saved up somewhere? If the answer is no, I’ll be the first to tell you the truth. Your issue isn’t that you don’t earn enough, your issue is you haven’t made the decision yet to never be broke again. Aside from all the things you’re thinking right now, the bottom line is, it’s simply making a decision and committing to it, no matter what.
Consider how you spend your money. Do you earn $20 an hour? Let's assume you do. To purchase this pair of Jordan's you will need to work for 2 full days to pay for them. You need to work 2 entire days, or 16 hours, to earn enough to buy a $225 pair of shoes. Is it worth 2 days of your life, or 10% of your whole monthly income, to have a pair of sneakers that literally costs $15-$16 to manufacture? Keep in mind this is assuming that you earn $20 an hour. What about people that earn $15? $12? $10
https://www.footlocker.com/product/jordan-retro-7-mens/V6281006.html It is critical you understand these principles:
$20 hour = $160 a day/before taxes.
*You'll never see, at least, 15% of your gross pay that goes to Federal, State, FICA, etc.
2 days pay = $320/before taxes.
$320 (- 15%) for taxes leaves you with $272.
Your $225 shoes (+ 10%) sales tax costs you $247.50 out the door at Foot Locker.
What is your cost to commute to work for those two days to earn the money? What is the cost for you to travel to purchase those shoes?
The Bottom Line
Now you know the real cost of buying that single pair of shoes. Just because you have the ability to pay for something doesn't mean you can afford it. 30% of your monthly income should be going to rent. 10% of your monthly income should be going toward your car payment. Look in the mirror and seriously ask yourself: "Is a pair of shoes that costs $15 to make worth the same as a car payment?"
If buying a $225 pair of gym shoes feels perfectly normal and you've never purchased a $225 pair of dress shoes to go along with your business suit, I implore you to expand your thinking. The $225 pair of gym shoes will most likely never make you any money. They are a liability in financial terms. A liability is something that takes money out of your household, or creates debt. Consider, the $225 pair of dress shoes just might land you the dream job, or business deal, you've been praying for because you made an investment in your appearance.
Now you know the actual cost of making financial decisions that are harmful to your personal financial plan and wealth building strategy. You know that even though you have the cash to buy something, does not mean you can afford it. When you earn $20 an hour, there's nothing wrong with buying a $250 pair of Nike shoes if you saved $25 a month for them, in addition to the $100 your mom gave you in your birthday card.
Just because you have the temporary ability to pay for something doesn’t mean you can afford it.
Being able to afford something means it does not interfere with the budget outlined in your financial plan. If you don’t have a written financial plan, make the decision now to create one and follow it.
Wealth Legion will teach you all the principles to be confident in managing your own finances. You just need the commitment and desire to want to win. You deserve it and your family deserves it.
Invest In Yourself
You've heard the saying, "Pay yourself first." Wealth Legion believes in Investing In Yourself and paying yourself is a huge part of the equation.
How often do you save?
Have you been putting off saving for a while now?
Do you have guilt around saving?
Are you tired of looking at your bank account and not being satisfied with the number?
Do you have a savings account?
As a financial advisor, I've heard people say many times that they will start saving money when they get some. Sadly, this is flawed thinking and it's not their fault because if they knew better, they most likely would think differently. If this is your current thinking let's upgrade that thinking, right now.
The best time to save money is when you have it.
If you don't have any savings the reason for that is it's simply not that important to you, or else you would have it. Think about when you want something really badly. It could be a date with that special person, a vacation, or a new cell phone. Your mind has a bundle of nerves in your brain stem called the RAS, or Reticular Activation System. This is one of the oldest parts of the brain and it is responsible for filtering out what's important and unimportant. When something is important, your RAS finds more proof in your world to support your thought, or belief. When you buy a black Range Rover and all you notice are Range Rovers, this is your RAS at work. You literally must reprogram your brain that you are a good saver and that you have decided to invest in yourself.
Learn more about RAS: https://youtu.be/QCnfAzAIhVw
We work 40 or more hours a week most often and we have a pile of bills and expenses in our lives simply to remain off the street. Without any major luxuries you need the basics of food, shelter, and clothing. At home you probably pay electric, gas, water, internet, cell phone, etc. This is a simplified illustration and most people's financial situation is a little more detailed. Here's my questions for you.
What are you living for?
Are you here simply to survive and pay bills?
Now here's the big question. If you work 160 hours a month to go to a job that that you most likely don't enjoy, with a boss you probably don't like, spending all day away from the people you love the most, why is it you don't make yourself one of your bills and start putting value on your life? This is called net worth. Your net worth is your assets minus your debts and liabilities.
I can hear you thinking right now, "How does this guy know what's important to me, or not." What I want you to understand is that if you don't know what questions to ask yourself, then you simply don't know. What if your idea of the world is limited to what fits inside a cup full of water and you've never seen the ocean to know that something exponentially greater exists? When you're thinking you need to save, or hoping that something changes so you can save money, you just need to ask yourself better questions.
Let's assume your income is less than your expenses and it literally feels impossible today to save anything. If your income doesn't cover your expenses that means you have a greater issue that first needs to be addressed. This will be covered in a later conversation. If this does describes your situation, ask yourself: "What can I do to bring in more money so I consistently have more than enough to cover all my bills?"
Now let's just assume you have a little left over every month and simply chose not to save, its because you don't yet know how expensive that thinking is as it relates to your future. Let's partner today and implement a plan so we can be 100% certain you will never be broke again. First, I need you to make that decision.
Look in the mirror and say the words: "From this day forward, I will never be broke again." Write these words in a journal, put the date, and sign your name.
Read our follow up article: Creating High Yield Savings On Autopilot
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Hear this article on our podcast: https://anchor.fm/wealthlegion/episodes/The-True-Cost-of-a-Pair-of-Jordans-e4dhni