The money beliefs you hold may have become outdated in our quickly changing society.
We form money beliefs via two critical experiences: our upbringing and our culture.
These two viewpoints that control what we believe deep in our subconscious manifest
as the “right things” to do with our money to create a successful life. Our society,
however, has been in a constant state of flux for the last few years, and the “right thing”
is shifting at speeds not seen in many generations.
The traditional, successful life has been to graduate from high school, attend a four-year
college, get a secure job, get married, buy a house, have kids, then finally retire in
financial security. It is becoming apparent to many that this culturally accepted formula
for success may no longer be valid—or at least has become harder to create. Examples
include the following:
Birth rates have dropped 20% since 2007. (Journal of Economic Perspectives)
Few jobs now offer the benefit of a full 30 years of employment and an accompanying
The Pew Research Center shows that the average person will have a dozen different
jobs in their lifetime and change jobs every 4.1 years.
It is can be financially harmful to remain with the same employer. Last year, job
changers secured a 15% raise, while only an average 5.7% wage increase was
obtained by those who remained in their old jobs (according to Zippia, a career
You may have to change cities, states, and even regions of the country to stay
employed. Upwork.com says 19 million people relocated last year for work.
Home prices have varied wildly over the last few years and are severely impacted by
Due to changes in employer coverage, health care has become more expensive.
Recent polling by Kaiser Family Foundation finds half of Americans are having difficulty
affording health care. The Health Research Institute reports that health care costs rose
7% in 2021 and 6% in 2022.
Life expectancy has dropped across the board and is now 73 for men and 79 for
women. The changes are believed to be related to COVID-19, a disease which is still
changing our society in unanticipated ways.
We must now “save for our own retirement.” The most common reaction has been to put
the task of saving for retirement off until later—usually much later.
According to gobankingrates.com , the average school loan takes 20 years to pay off
and is around $45K.
The number-one thing you can do right now to combat all of these quickly evolving
challenges is to increase your net worth.
Forget retirement! You need a high net worth today! Adequate financial means will
provide you with security in tumultuous times. Those with higher financial resources
have greater life flexibility. Those who have a high net worth can choose to try to find
something closer to the area they want to live if they don’t want to move across country
to take a job.
In addition to all the obvious benefits of financial security, did you know a high net worth
can also save your life? If you get sick, having the financial resources to deal with the
illness effectively can make all the difference. The more serious your illness, the more
this matters. As an example, Lisa got a rare cancer. Because we had adequate financial
resources, we were able to step outside the normal channels and see world-class
specialists in that field. Luckily, Lisa’s outcome has been good and she is currently
“without evidence of disease.”
A new study by the Center on Society and Health now shows those people who have
higher financial means have a lower mortality rate than those with fewer financial
Another option is to purchase a smaller (think cheaper) home the next time you need to
change your living situation.
Even as you read this article, mortgage rates are rising. If you weren’t around during the
Great Recession, or you’ve forgotten, those high-interest loans became the anchor that
dragged thousands of people underwater financially. If you are a job loss away from
being able to make your mortgage payment, you have a lot at risk on the table.
For your next home, consider purchasing a smaller, more cost-effective home or
consider renting. No matter what anyone tells you, when you must move, it’s way easier
to sell a less-pricey home than an expensive one. Save your money until interest rates
Finally, it is important to remain flexible, stay calm, and try to keep a positive attitude.
When you get stressed, it is harder to think of solutions to the problems you must
overcome. Multiple studies have shown that the more stressed we become, the more IQ
points we lose. Also, keep an eye out for nontraditional routes to your own version of