There is a myth that people who look “richer” are thought to be “wealthy, but in reality, all that tells us is they have a more expensive lifestyle. Tied to that is the myth that big incomes mean you are wealthy. But income is not wealth, and wealth is not income.
In this episode Erik Garcia, CFP®, BFA, and David R. Carothers, CIC, CRM, CWCA discuss the secrets of millionaires of converting income into wealth. It’s real simple to become a millionaire. It’s just not easy!
- David mentions that his mission is to help people with unique skills and talents and surround himself with talented individuals to compensate for his weaknesses. (6:42)
- David believes that the key to building wealth is not to emulate the ultra-wealthy but to follow the principles outlined in books like “The Millionaire Next Door” and practice financial discipline and common sense. (14:45)
- David explains that the key to financial success is making wise long-term investment decisions rather than chasing get-rich-quick schemes like cryptocurrency. (22:35)
- David mentions that taking quantifiable risks and having the financial means to self-insure can be a viable strategy for wealthy individuals to minimize the impact of insurance costs. (25:14)
- David discusses the importance of staying disciplined and committed to financial goals, such as saving for future expenses, and avoiding borrowing or deviating from the plan. (32:10)
- David explains that the current generation is successful because they are willing to ask for help and delegate tasks, allowing them to focus on being owners rather than workers, which leads to financial success and defined goals. (34:51)
- David shares that young people today prioritize values and making a difference in their job, valuing experiences over material possessions, and prioritizing travel and personal growth over traditional career paths. (38:09)
- “Income is finite and wealth can be infinite if you do it right. You know, if you get your family on the right course, and you teach your kids the right way, then you should be able to reasonably assume that things are going to work out okay for a few generations to come.” – David Carothers, CIC, CRM, CWCA
- “If you’re gonna build wealth, it’s gonna change generations, It can’t end with you knowing how to manage that.” – David Carothers, CIC, CRM, CWCA
- “You don’t get into debt, without making bad conscious to subconscious bad decisions. You’ve got to make conscious good decisions to get out of debt.” – David Carothers, CIC, CRM, CWCA