The refrain from Kenny Chesney and David Lee Murphey’s song Everything’s Gonna Be Alright is melodic and reassuring.
Everything’s gonna be alright
And nobody’s gotta worry ’bout nothing
Don’t go hittin’ that panic button
It ain’t worth spilling your drink
Everything’s gonna be alright
Alright, alright
It gives you a sense that no matter what is going wrong in your life it must be going to get better.
That may feel good but what really matters is what are you doing to get better?
There is no magic pill for financial woes.
In life, you need to learn to live by the TINSTAFL rule. “There is no such thing as a free lunch”
If you want something, then you are going to have to give something else up. Nothing comes free. This is especially important in your financial life and applies to you at any point in your life.
The Three Greatest Mistakes
Are you one of the nearly 56% of people according to Money.com who don’t take advantage of a tax-deferred retirement account. Data from the Census Bureau shows us that even if your company does offer you a 401(k) only 41% opt to participate. That means that only 32% of ALL Americans are saving in a 401(k). This is the ultimate freebie from the US Government. Contribute and save taxes.
If you violate the 30% rule when you buy a house, you are probably not going to reach a state of abundance. What Is the 30% Rule? You can spend about 30% of your income on housing and still have enough left for other expenses. Overspending on housing is a crippling mistake and handicaps your future.
If you get a car loan with a 7-year maturity, you are probably not going to reach a state of abundance. Get a car that you can pay for in three years or pay cash and save the difference.
Often I get asked, “what do I need to do to get wealthy?”
The answer usually lies in correcting one of the three mistakes above.
Solving these mistakes means you have to give something up now to be able to accumulate towards your net worth and have abundance in your life.
If you take the long approach and resist the impulse to overspend today later in life you will have abundance and as Kenny sings “Everything’s gonna be alright,
If you are stuck in one of these mistakes, then click here and spend 30 minutes with us creating a plan to get back on the track to abundance in your life.
Working on living my “No Shoes, No Shirt, No Problems” Life
Michael Tannery CPA CDFA® AIF® ● CEO
Registered Principal
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