I recently attended an event where I was surrounded by incredibly successful women. Every participant earned a high six or seven figures…more than 90% of the population.
But as our conversations went deeper, I noticed a disturbing theme. There’s a dark side to high earnings. Whopping wages can be deceptive and dangerous. I call it the Illusion of Affluence.
I saw it at that conference. I see it repeatedly with clients. High earners spending too much, saving too little, or plowing all profits back into their business. Their ample earnings gives them the fantasy, but not the security, of affluence.
Even if they can easily make a bundle whenever they want, high earners are as vulnerable to hard times and sudden change as anyone else.
Absolutely, women making big money are to be applauded. But the real measure of success isn’t what comes to you…it’s what stays with you. In other words, your net worth—the sum total of what you own minus the sum total of what you owe.
Very few high earners I meet have a net worth over a million dollars. Far fewer if the value of their home wasn’t counted. Fewer still could afford to stop working, even years down the road.
If you’re a successful high earner, or on course to becoming one, ask yourself this question: Isn’t it time my money works as hard for me as I do for it?
I promise, wealth building doesn’t need to be overwhelming or time consuming if you start following these 3 steps:
- Delegate—find financial professionals to help you create a plan and keep you on track
- Automate—every month automatically have a specific sum of money transferred to a savings account and also your brokerage firm.
- Educate—everyday, read something about money (peruse the headlines of the business section of the paper or browse through a financial magazine). I call it the Osmosis School of Learning.
All it takes is a few minutes of daily reading, the support of trusted advisors and the habit of consistent savings to become a truly affluent woman…regardless of how much (or how little) you earn.
Leave a comment below and tell me how you make your money work for you.
If you enjoyed this Words of Wealth, click here to receive a copy in your inbox every week.