Pitfalls of Living Rich but Not Building Wealth

There are various pitfalls of living rich but not building wealth. More people than you realize have over-extended themselves with car loans, mortgages, toys, and various other things. People who look “rich” might not actually be. Statically, baby boomers only have about $125,000 saved for retirement, most of which is probably equity in their home. We have a real saving problem here in the US, people are often spending more than they make and fail to build their savings. Just because someone else buys a nicer home, doesn’t mean that you should be pressured to do the same. The pitfall of living rich and spending all of your money, is that when you hit a rough patch, you have nothing to fall back on. You will also be working forever and unable to retire if you fail to put money aside in savings. The Millionaire Next Door is an excellent book that shows that there is a path for you when saving for the future.

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Casey Smith
President, Wiser Wealth Management

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By Published On: July 7, 2023

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