How to adopt a wealthy life today
I hosted a workshop called the "Art and Science of Money" at Creative Mornings Fieldtrip.
During the introduction, I threw a question out to the participants: "What does wealth mean to you?"
Not a single response was about a specific amount of money one should have.
Instead I got: Freedom, Safety, Ease, Safe, Comfort.
Being wealthy isn't just a bunch of numbers, let alone how much you have in your bank account.
It's about crafting your life based on your values. Money is a means to an end, not the end goal itself - that's the Art of it.
Now, I can almost hear you thinking, "Great Sophie, but I still have bills to pay, and I want to have free time to do stuff that I truly care."
Well, I'm glad you asked.
Let me share how being wealthy is both science and art.
This week, I had a health scare and ended up to the ER, but luckily I'm all good. More fear than harm. We often take our health for granted. Health is the new wealth - please stay whealthy :)
Today's talk:
- The Science: choose your wealth
- The Science: know your number
- The Art: focus on what you can do
- The Art: adopt healthy habits
- Conclusion
The Science: choose your wealth
Let me share with you the work of Thomas Corley, US Financial expert and author, who spent 5 years interviewing 233 wealthy individuals to uncover the strategies behind their success.
He concluded there are 4 different paths to reach wealth: Dreamers, Virtuosos, Company Climbers, and Saver-Investors.
The Dreamers: This path involves pursuing passionate dreams. Think actors, entrepreneurs, musicians! The secret? Commit to working 65+ hours a week, and handle financial stress like a champ. Don't hope to get a steady income for years, or even a decade or two, if ever!
The Virtuosos: This path involves becoming the best in a profession valued by the society. The secret? Start early, study hard, work digilently. Advanced degrees are often necessary. It is a very time-consuming and highly expensive path, but can lead to high earnings and expertise.
The Company Climber: This path involves climbing the corporate ladder in large multinationals: think senior executive positions! The secret? Building the right relationships and putting in long hours are essential. Yet, there are risks. What if you aimed the wrong company?
The Saver-Investor: This path involves saving at least 20% of income, investing early, and keep it up. The secret? Start investing your savings early in life and keep the discipline for 35+ years! Simple but not easy.
I'd argue regardless of the path you pick, you must start saving and investing a portion of your income, because that habit will give you the ultimate freedom.
- Freedom for not working long hours if you don't want to.
- Freedom to spend time as you please.
- Freedom to live wherever you want.
What is your true wealth?
The Science: know your numbers
Let me give you a caveat on his research.
He interviewed "rich people" based on the following criteria: earning at least $160,000 in annual gross income and owning $3.2 million in net assets.
If this is your definition of wealth, I highly encourage you to start one of the four paths ASAP.
But if you're here, I doubt this is your dream life.
Your vision of wealth might be slightly different.
- Maybe you only need $50K annual income because you live in a more affordable town.
- Maybe you want to have a healthy work-life balance by spending enough time with your loves ones and expericing your hobbies.
- Maybe you want to prioritise your health and spend two hours a day working out and eating healthy.Maybe you want to give back to the society doing volunteering projects 3 times a week.
No matter what your goals are, put a number on it!
Gain crystal-clear clarity on what you want and what it takes to reach it. The truth is it's often way more doable than you think.
Plus, this assessment ensures that you don't devote decades to a path that doesn't align with what you are truly looking for.
"You can have it all, just not all at the same time" - Betty Friedan
How much do you need to become wealthy?
The Art: focus on what you can do
Great! Now that you've got your numbers sorted, let's delve into the art of building wealth.
The common denominator of the 4 wealth paths is that they all require discipline, long-term vision, and hard work.
Whichever road you choose, the path is long.
Very long.
Even the saver-investor path, while pretty much guaranteed to lead to some form of wealth, demands a hefty dose of discipline and patience (30+ years).
Still, there is only a minority who can accomplish it.
So, instead of over-focusing on the results, focus on the efforts. Find pleasures along the journey. Turning obstacles into challenges for progress will keep you motivated to improve every day, all while having a bit of fun.
It's good to have in mind where you want to head, but think of what you can do today to make your life better:
Set a regular money date with yourself and your partnerEducate yourself about impactful investingHave casual conversation about money with your friendsAllocate guilt-free spending on something you love
“Goals are good for setting a direction, but systems are best for making progress” - James Clear
What do I want to learn on this path?
The Art: adopt whealthy habits
In his book "Rich Habits: The Daily Success Habits of Wealthy Individuals", Thomas Corley explores the habits and behaviours of wealthy individuals.
Guess what? More than 80 percent of wealthy individuals interviewed dedicate 60 minutes a day to engage in dream-setting activities.
That include:
- writing down what you want to achieve,visualising your desired financial outcomes, reinforcing your positive financial beliefs and affirmations,creating a plan,tracking your progress towards those goalsrefining goals.
Note that journaling is also proven scientifically that it improves immediate and long-term health (Dr Huberman approved).
This exercise might be intimidating at first.
But, I can guarantee you the more you do, the easier it gets.
"Habits are the cause of wealth, poverty, happiness, sadness, stress, good relationships, bad relationships, good health, or bad health" - Thomas Corley
What do you want 1 year, 5 years and 10 years from now?
Conclusion
Here you have it: the Art and Science of Wealth.
Knowing your goals and how much you need to achieve them it the key. Embrace your wealthy life today by tackling one problem at a time, and incorporating healthy habits into your daily life.
Let's be real, the wealth path is a marathon, not a sprint.
And, get ready for some hills on this journey. Some days will be smooth sailing downhill, while others may seem like an Everest climb – almost impossible to overcome.
Make sure you have enough fuel to make it to the finishing line, no matter what obstacles comes your way: injuries, rainy days, snowstorms, you name it.
Ask yourself: What might make you consider throwing in the towel?
While I cannot promise an exact timeline for hitting your goals, I can guarantee that if you train your financial confidence level, you will always find a route, even if it requires taking a detour to get back on track.
Curious to learn more? Join the Financial Confidence Masterclass this week (enter the promo code XMASGIFT23 to book it for FREE)!
Thank you for reading, and as always, build your wealth mindset 💪
Sophie
