How Much Money Should You Have At Your Age?
How much money should you have at your age? Have you ever wondered where you stand financially relative to where you are in life? If so, check out this video as I share my thoughts on this topic.
Patrick King: How much money should you have at your age? Let's talk about that coming up.
Patrick King: Hey there, folks, I'm Patrick King with Transformative Financial. Here on this channel, we help people make money, keep money, and feel more financially secure along the way. If that sounds like something that you are interested in, please contact me. My email email@example.com. My telephone number is 404-500-9261. I'd love to talk with you and see if it's a good fit.
But today what I want to talk about one of the most common things that I hear when I start working with someone is, “I know I should have a lot more money than I've saved”. What really strikes me as funny about that is that I hear that from almost everyone. I think there's a general anxiety out there that people have that they just don't have enough money. That may be true in a lot of cases, but I think it's interesting that people bring that up. “How much should I have given where I am in life? Really, I feel like I should have more.” Is that true or not?
Let's dig into the question that people ask. Who are you comparing yourself to? Is there a number that you had in mind that you think you should be at? And why do you think that you should be at that number? Every time I hear the word, “should”, I get a little suspicious and start to question things.
One thing, too, I would also add is, what assumptions do you have about the wealth of all of your peers, all the folks that are in your age group? I would say that maybe-- even though folks would outwardly display wealth, there's a big difference between looking like you have wealth and actually having it. So just because someone appears successful, I wouldn't necessarily assume that they are actually wealthy. Just to kind of give you a benchmark for, I guess, America in general. Most Americans on average have about a $100,000 saved, period. $100,000.
Now, think about that for a second. How long is that going to last you in your ideal retirement? Probably not as long as you want, right? So you want to be a little bit better than average if you're going to have a comfortable retirement, or to be financially independent, whatever that means these days to you.
What it comes down to is, you “should” have exactly what you have because it's a product of all of your knowledge and your choices along the way. Now, I don't want you to judge yourself about that. If you feel like you don't have a whole lot of money, it's just a number, right?
And if you're frugal, number doesn't have to be as big as maybe you think it does. It all comes down to the choices that you make. Most people don't fall into wealth by default. It's a product of the choices that they've made along the way to proactively save, and invest, and work towards building that number up that makes them a little bit more comfortable about their financial position.
When it comes to those choices — and there was actually a personal trainer many years ago it told me, "You can have anything, but you can't have everything." That's true. Even if you're Jeff Bezos, you own Amazon, and you're the wealthiest person in the history of the world, you still can't have everything. Money is optionality in a lot of ways, but you can't have so much that you don't have to make choices at some point along the way. This applies even to the ultra-wealthy clients that I've worked with in the past.
Yes, when I think back to the folks that I've worked with along the way, I've worked with folks who had huge incomes, and they made boatloads of money, but weren't worth anything. They didn't have a whole lot of money in their name in spite of all the cash that was coming in, it was going right back out.
I've also worked with folks who, on an outward appearance basis, didn't seem like they had a very high net worth, but were worth millions. Looks can be deceiving a lot of times, so be cautious when you're playing the comparison game.
If thinking that you don't have enough motivates you into creating a plan where you start proactively saving and making those positive choices, then, yes, okay, let that motivate you a little bit. If you feel a little bad, let it motivate you into something that's positive.
The truth is, however – the hard truth – is that most people aren't going to do what it takes to put themselves into a financial position that they're going to want to be in when they have to step away from work. You know why? Change is hard. Change is hard.
When it comes to delayed gratification, that's the antithesis of what we're marketed these days. "I want it and I want it now," right? But it all comes down to, can you honor that future you enough to do what it takes to put that you into a positive financial situation.
I have so much respect for all the clients that I've dealt with along the way throughout the years who have had the intestinal fortitude to make those positive changes and actually see them through. I've seen some incredible success stories, and I'm so proud of those people because, you know what? It's hard. It's hard to make those choices, especially if you're used to spending all that paycheck. "It's payday. Let's go have fun. It's Friday night." Right? But that may not serve you well in the future.
A good way to start If you're worried about not having enough, it's just put away 10% of your income, to start with 10%. Let's start with something, it's better than sitting around worrying about it. If you're spending your time worried about how much you should have, no matter how old you are, how about, let's just make a plan to get where you want to be because the effort it takes to actually do it is so much less than all the time, and effort, and stress, and worry that you put into worrying about not having enough money, to begin with.
That's what I've got for today, folks. Thank you so much for watching. I hope it was useful. I hope this motivates you too. If you don't have a plan, get with it. Give me a shout. Let's create one. If you do have a plan, stick to it.
Thank you so much for watching. If you like this, click “like”. If you enjoy these videos that I'm making, you want to see more of them, please, subscribe. I would absolutely love that. Leave a message, and let me know what you'd like to hear more of. Again, I'm Patrick King with Transformative Financial. Until next time, cheers.
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