It doesn’t matter how much you make

It matters how much you keephttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤷🏼‍♂️" title="Achselzuckender Mann (mittelheller Hautton)" aria-label="Emoji: Achselzuckender Mann (mittelheller Hautton)">

Let me explainhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">

(thread)

For this thread

We are going to look at the income of https://abs.twimg.com/emoji/v2/... draggable="false" alt="👩‍🦱" title="Woman, curly haired" aria-label="Emoji: Woman, curly haired"> and https://abs.twimg.com/emoji/v2/... draggable="false" alt="👨‍🦱" title="Man, curly haired" aria-label="Emoji: Man, curly haired">

Both of our examples are 40 years old and have had the same income since age 25

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👩‍🦱" title="Woman, curly haired" aria-label="Emoji: Woman, curly haired"> is a business owner and makes $200,000/year!

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👨‍🦱" title="Man, curly haired" aria-label="Emoji: Man, curly haired"> is a school teacher and makes $50,000/year!

Let’s look at their habitshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">

At the looks of it

Most people would think that https://abs.twimg.com/emoji/v2/... draggable="false" alt="👩‍🦱" title="Woman, curly haired" aria-label="Emoji: Woman, curly haired"> is super rich

She drives a nice BMW https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚘" title="Entgegenkommendes Auto" aria-label="Emoji: Entgegenkommendes Auto">

She lives in the fancy house https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏡" title="Haus mit Garten" aria-label="Emoji: Haus mit Garten">

She goes on multiple vacations each year https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏖" title="Strand mit Sonnenschirm" aria-label="Emoji: Strand mit Sonnenschirm">

She wears the latest designer clothes https://abs.twimg.com/emoji/v2/... draggable="false" alt="👗" title="Kleid" aria-label="Emoji: Kleid">

But she saves $0 because the stock market is “too risky” https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤢" title="Angewidertes Gesicht" aria-label="Emoji: Angewidertes Gesicht">

As for https://abs.twimg.com/emoji/v2/... draggable="false" alt="👨‍🦱" title="Man, curly haired" aria-label="Emoji: Man, curly haired">

He decides to live a modest lifestyle

He drives a Honda https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚘" title="Entgegenkommendes Auto" aria-label="Emoji: Entgegenkommendes Auto">

He lives in a house that doesn’t stretch his budget https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏠" title="Haus" aria-label="Emoji: Haus">

He goes on a vacation, but he budgets for them https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏖" title="Strand mit Sonnenschirm" aria-label="Emoji: Strand mit Sonnenschirm">

He decides to shop at H&M rather than the designer stores https://abs.twimg.com/emoji/v2/... draggable="false" alt="👕" title="T-Shirt" aria-label="Emoji: T-Shirt">

He invests 20% of his incomehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">

So you have 2 different people:

Society thinks https://abs.twimg.com/emoji/v2/... draggable="false" alt="👩‍🦱" title="Woman, curly haired" aria-label="Emoji: Woman, curly haired"> is rich (she is, but only in income) because she has the fancy car, nice house and vacations!

Society thinks https://abs.twimg.com/emoji/v2/... draggable="false" alt="👨‍🦱" title="Man, curly haired" aria-label="Emoji: Man, curly haired"> is poor because he drives a Honda, wears “cheap” clothes, lives off of 80% of his income!

But wait, there’s morehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👩‍🦱" title="Woman, curly haired" aria-label="Emoji: Woman, curly haired"> spends 100% of her $200,000 income since age 25

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👨‍🦱" title="Man, curly haired" aria-label="Emoji: Man, curly haired"> spends 80% of his $50,000 income and invests 20% ($10,000/year with 8% annual return) since age 25

They are both 40 years old now

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👩‍🦱" title="Woman, curly haired" aria-label="Emoji: Woman, curly haired"> has $0 to show for her retirement

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👨‍🦱" title="Man, curly haired" aria-label="Emoji: Man, curly haired"> has $288,364 in his retirement accounthttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">

Remember, they are age 40 now!

Look at this...

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👨‍🦱" title="Man, curly haired" aria-label="Emoji: Man, curly haired">’s $288,364 will grow into $1,911,561 by age 60 if he continues his savings ratehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤩" title="Vom Star geblendet" aria-label="Emoji: Vom Star geblendet">

For https://abs.twimg.com/emoji/v2/... draggable="false" alt="👩‍🦱" title="Woman, curly haired" aria-label="Emoji: Woman, curly haired"> to have that same amount of money by age 60, she’ll need to start investing ~$3,300 per month....

It is IMPERATIVE to start ASAPhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🗣" title="Silhouette eines sprechenden Kopfes" aria-label="Emoji: Silhouette eines sprechenden Kopfes">

Even though https://abs.twimg.com/emoji/v2/... draggable="false" alt="👩‍🦱" title="Woman, curly haired" aria-label="Emoji: Woman, curly haired"> earns 4 times more in income per year than https://abs.twimg.com/emoji/v2/... draggable="false" alt="👨‍🦱" title="Man, curly haired" aria-label="Emoji: Man, curly haired">

She has $0 to show for it in her retirement accountshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🥴" title="Woozy face" aria-label="Emoji: Woozy face">

It doesn’t matter how much you make

$1,000,000

$100,000

Or $10,000

If you spend all you make; you are BROKEhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤷🏼‍♂️" title="Achselzuckender Mann (mittelheller Hautton)" aria-label="Emoji: Achselzuckender Mann (mittelheller Hautton)">

I hope this thread was an eye opener!

High income ≠ wealthhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤷🏼‍♂️" title="Achselzuckender Mann (mittelheller Hautton)" aria-label="Emoji: Achselzuckender Mann (mittelheller Hautton)">

If you enjoyed this thread feel free to share ithttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤝" title="Handschlag" aria-label="Emoji: Handschlag">

Thanks for reading this threadhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🙏" title="Folded hands" aria-label="Emoji: Folded hands">

Much love!

@DecadeInvestor