10 Ways to NOT Be a Millionaire - Series Recap | Series 9.11

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Welcome to the Enjoy More 30s Family Finance

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podcast. The only podcast dedicated to making life more

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enjoyable for young families, by hitting on the financial topics

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that tend to weigh on us, stress us out, and distract our focus

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from simply enjoying life.

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Welcome once again to the Enjoy More 30s Family

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Finance podcast in our series recap of 10 Ways To Not Be a

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Millionaire. As always, if you like what you're hearing, please

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make sure to subscribe, please make sure to follow us on Apple

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podcasts wherever you happen to listen. Clicking stars, leaving

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reviews really helps us reach the literally millions of other

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young families out there that are just like you. Now if you

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actually do want to be a millionaire, you do not have to

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worry, this series wasn't just for those people who are looking

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for financial ruin. If you avoid doing these 10 things then you

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could be well on your way to millionaire-hood as well.

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Why I did this series, other than enjoying doing my game show

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or announcer voice, was to highlight some easy traps people

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tend to fall into when it comes to money. As I've said for a

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very long time now you don't need to have anxiety when it

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comes to money. And with the right mindset and a few steps in

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the right direction, you can make really huge strides. So

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every stride you take every step you take be proud of yourself as

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you take them. If you take even one step forward as a result of

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listening, you're better off than you were before. So I'm

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going to run through a recap of all of our 10 Ways To Not Be a

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Millionaire. Think about which ones would be most important for

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you to take action on today. And back to my game show voice.

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First up is Saving Late. Saving late is a great way to not be a

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millionaire. Someone who saves $500 a month at 10% for 30

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years, winds up with over $1.1 million. Someone who waits 10

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years and then starts the same exact program would wind up with

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less than $400,000. Over 60% less saved up. So saving late is

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obviously a great way to not be a millionaire.

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The second great tip was on Missing the Match. Your company

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may try to give you free money, a 100% return through a company

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match on your 401(k) or other work plan. If you do not want to

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be a millionaire, this is obviously critical to avoid.

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Free money is going to double what you'd otherwise have saved

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up. Again one of the largest traps when trying to not be a

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millionaire.

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Number three was Rushing Past the Roth. Roth IRAs and Roth

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401(k)s grow completely tax free. What a disaster. What

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better way to not be a millionaire then by paying as

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much tax as you possibly can. The growth will likely be much

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more long term than your actual contributions so by avoiding the

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Roth we can ensure all of this growth can be fully taxable.

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Disinterested In Disability came in at number four. Who wants to

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think about becoming disabled? That's no fun. While avoiding

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thinking about something unpleasant, we can also help

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ourselves to not be a millionaire. For a young family,

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your future income potential is your greatest asset. If you make

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$100,000 now, then over the next 30 years at 2% wage growth, you

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would bring in over $4 million. A huge asset that is exposed by

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not having disability insurance protection. Being more likely to

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occur during your working years then death, being disinterested

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in disability can certainly be a great way to not be a millionaire.

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Next step was Budgeting Backwards at number five. By

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only saving what may be left at the end of the month, you can

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put yourself in a great position to have nothing left at all to

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save, pushing you further away from millionaire-hood and

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overall wealth. If you were to actually save first when getting

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your paycheck and then only spend what was left you would

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put yourself in a position of excellent consistent savings.

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Certainly something you want to avoid if you do not want to be a

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millionaire.

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Piggybacking on number four Pretending You Can't Die is

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another great way to risk your largest asset as a young person.

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That future income earning potential by not having proper

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life insurance coverage. Who cares if your family may have to

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sell their home and miss out on their goals? Certainly not

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someone who does not want to be a millionaire that too.

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Blowing the Bonus comes in at number seven. This is another

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great way to not to be a millionaire because it pushes

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down your wealth in two ways simultaneously. By treating your

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bonus or tax refund for that matter as free found money that

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you can spend guilt free, you can not only avoid potentially

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huge long term future investment growth and wealth creation, but

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you can also raise up your standard of living, making it

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more difficult to retire down the road. A $5,000 bonus for 35

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years is $175,000. A saved $5,000 a year bonus growing at

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10% for those same 35 years is over $1.3 million. Over a $1

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million difference that any person who does not want to be a

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millionaire should certainly want to avoid.

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Number eight is Getting Good Debt Gone. By paying down lower

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interest rates, student loans or mortgage debt, we can shun the

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opportunity cost of investing that money instead. If an

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investment makes 7% long term and your mortgage is at 3%,

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saving 3% instead of making, in this example, 7% can potentially

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be a great way of not being a millionaire. Furthermore, by

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putting more money into an illiquid assets, such as a home,

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if we were to lose our job or have some other financial

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hardship, we would be more likely to have to immediately

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sell our home with more money tied up in this illiquid asset.

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Again, likely a great way to maybe not be a millionaire.

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Almost rounding us out here at number nine, Saving For College

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Over Retirement can be an especially clever way of helping

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us to not be a millionaire. We love our kids and want to help

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so there are great emotional ties that can help us save for

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something like college, which loans are available for end

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which we can help our children instead make more manageable

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payments down the road versus saving more for retirement,

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which loans are not available for at all, potentially putting

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ourselves in a much more difficult position where college

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is paid for and we do not have enough to meet our own

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retirement needs.

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Last on our list number 10 is Living For Lifestyle. Why this

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is such a great way to help you to not be a millionaire is that

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it's so much fun! Spending a greater percentage on our budget

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on cars and houses and other shiny objects can feel great and

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simultaneously, it can push us farther away from being

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millionaires. Spending just an extra $500 a month on lifestyle

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items or saving that same $500 a month towards ourselves for 30

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years would grow to over $1.1 million, assuming a 10% example

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rate of return. Once again, if you do not want to be a

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millionaire something again to be avoiding.

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So that is it for our recap. Hopefully you can connect with a

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number of these items because you know, obviously no one

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really wants to be financially insecure. So ask yourself, do

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you save everything that you can? A few $100 can mean

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hundreds of 1000s of dollars down the road. Do you have

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sufficient life and disability insurance? If not, you have

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millions of dollars in future income earnings unprotected

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along with your family's welfare. What do you do with

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your tax refund or your bonus every year? Do you treat it as

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free money or do you treat it as a way to supercharge your

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wealth? Do you take advantage of your company's match? How about

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the tax free growth of a Roth IRA or Roth 401(k)? Do you focus

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on saving interest on your loans by trying to pay them off early,

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regardless if they're a mortgage or a student loan or something

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that has a tax advantaged interest rate to it? Or do you

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focus your extra money on actually creating new wealth?

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Wealth is what you have what you save and grow not what you make.

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A $1 million portfolio generates $40,000 a year using the rule of

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thumb 4% in retirement. Those are the rule of thumb what I can

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withdraw from my retirement portfolio. Are you on track when

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you look at $1 million equates to $40,000 a year? Are you on

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track to have enough for your own retirement needs?

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For our next series to come, I'm jumping back into the more

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serious side of things. No more stories, no more game show

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announcer voice. 2022 has been one of the most tumultuous years

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on record with the main driver being sharply rising interest

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rates. As of the time of this recording both the global equity

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market so the MSCI ACWI IMI not for you, but specifically for

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compliance purposes, and the global bond market, Barclays

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Multiverse again specifically for those great folks over at

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compliance. So both the global equity and global bond market

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are down over 20% on the year. An unheard of occurrence really

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in our lifetimes.

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So I'm going to remix a number of my past episodes that may be

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particularly helpful with what is going on right now. Episodes

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to help keep us all on the right track with a healthy mindset and

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perspective. We're going to call it the REMIX For Rising Rates

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series. So make sure to check it out.

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We really live in just a completely amazing time where I

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can jump on here, grab a microphone and connect with you

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in this way. So if you can take it and run with it, great,

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fantastic. If you take one step forward and feel good about it,

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then I'm happy. This is what I'm doing here. This is why I'm here

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to record all these to help you guys out there. If it feels

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overwhelming, though, if you have questions or just want

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someone else to kind of help you get all this stuff in order, so

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you don't have to know exactly where you're going and what path

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you're on by yourself. Head on over to our website at

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enjoymore30s.com. That's enjoymore30s.com. Click Ask Joe

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to connect or you can just reach out to me directly using my

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wealth management firm New Horizons Wealth Management at

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nhwmllc.com. I probably have helped someone just like you. So

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thanks so much for joining me today and I cannot wait to

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connect with you again in the series to come.

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The conversations on this show are

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Joe's opinions and provided for general information purposes

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only. They do not constitute accounting, legal, tax, or other

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professional advice for your specific situation. You should

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always seek appropriate advice from a financial advisor,

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accountant, lawyer, or other professional before acting upon

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any content or information found here first. Joe is affiliated

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with New Horizons Wealth Management LLC, a branch office

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of TFS Securities, Inc., and TFS Advisory Services an SEC

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Registered Investment Advisor, Member FINRA/SIPC.