Financial assets are divided into several categories. Owning a business, real estate, a house, and having a tenant paying rent are all considered assets, while paper assets include stocks, bonds, mutual funds, IRAs, 401ks, and other investments that generate a cash flow. Through these, we gain the ability to maintain a style of living while they continue to work and generate income.

Unfortunately, the vast majority of people chase money in the form of a salary, which can cause stress and health problems throughout life. When they finally reach the end of their career, they’re often left wondering if this is all there is. Other people are having to work — not choosing to work — into their sixties and seventies because they can’t afford to retire.

Diversifying Your Portfolio

Building your assets gradually throughout your life means that when you decide to stop working, your quality of life doesn’t change because those assets are there generating income for you. Maxing out your 401k, particularly if your company matches it, is a great place to start because it gives you the tax deduction of what you’re putting into the 401k. But don’t rely on only that for your financial future.

Have a side business or an addition of some sort to your bonuses and raises. Turn that into an investment portfolio outside your 401k for a larger variety of assets to support you. Where you invest can align with your values and interests, such as investing in farmland, technology, and other industries you want to be part of your future. Get educated. Spend time looking into the possibilities and think about what you want your future to look like.

From Victim to Victor

We may not be able to control the economy, but we can control what’s in our wallets. Too many people are controlled by their money and because of that, they lose their health. Stand in your own power and take control of your finances because either you’re in control of your money or it’s in control of you.

A recent survey showed 80-85% of millennials and Gen Z’s number one concern is money. It wasn’t that way 10 years ago when older generations had this fairytale vision of their future. Today, these younger generations are scared to death.

We’re seeing an increase in mental health issues in these younger generations, which means many of them are missing out on opportunities because they’re not performing at their peak. This only adds to the worry over money, so the issue becomes getting off the rat wheel and moving from victim to victor.

Take Action and Own Your Finances

True success comes from taking your passion, confidence, and talent, and finding the power of association. You don’t have to be the smartest person in the room. You have the right people around you to help challenge you and open doors for you. Start asking for help. Find somebody that can help educate you or mentor you. Start reading and filling your brain with possibility, not fear. When you bring in that hope and possibility, the fear gets pushed out.

With the pandemic came a layer of negativity coating everything, and when we allow ourselves to be bombarded by negativity, we stop moving. We can’t take control of our quality of life and our finances if we stop moving.

Listen to this episode and learn how you can own your finances in this information-packed episode!

Guest Bio

Sharon Lechter is internationally recognized as a financial literacy expert, keynote speaker and business mentor. She is a 5-time New York Times Bestselling author, successful entrepreneur, philanthropist, CPA, and has advised two US Presidents on the topic of financial literacy. Sharon’s newest title, Exit Rich, supports entrepreneurs in building value and scalability in their businesses so they can be in the position of greatest potential.

Links

Twitter, IG, LinkedIn, Clubhouse: @sharonlechter
FB: @authorsharonlechter
https://sharonlechter.com/
https://sharonlechter.com/podcast/
www.personalsuccessequation.com