Master Daily Decisions to Make You Wealthy for a Lifetime

Have you ever heard the term, “don’t trip over dollars trying to pick up pennies?” In life, it comes down to four categories of decisions: our daily $100 decisions; followed by, the $10,000 decision; the massive $100,000 decision; and, the 2-part indecision.

Let’s break down each so you can start financially prioritizing what matters most:

Small Decisions Matter but they don’t often carry the weight

Firstly, it is not to say the smaller decisions do not matter at all. However, to a point, you should be making decisions and moving on the items that carry impact. As such, each small action needs to be important enough to warrant a limited focus and a quicker turnaround.

$100-$1,000 decision

Stressing over what high-yield savings account to put your money in doesn’t have a great impact since the difference between them is less than 1 percent. If you have $10,000 to invest in a HYSA, it really doesn’t matter if one financial institution was providing a 4 percent yield vs the industry average of 3.75 percent. At four percent, you would have $400 at the end of the year versus $375. Your time and stress are not worth +$25.

Pick one and move on. The same goes for budgeting out your simpler joys i.e. Disney Plus or Netflix. Even if Netflix was going for $20 per month that’s $240 per year. That’s far from the amount you would spend going out every other weekend.

While saving money is great, try not to cheap out on the wrong things. Insurance, Medical Care, and even a Mattress can all add to your overall quality of life.

Median Actions Bring Less than Average Results

While the average American is a millionaire according to the latest data from the 2022 Federal Reserve Survey on Consumer Finances, the median is struggling at $192,900. Our small day-to-day decisions are numerous, our middle-class decisions carry more weight and consequences.

Take for example, what you drive

A new $50,000 EV car in 2023 at 6 percent for 60 months with a 10 percent down payment, will cost you nearly $900 per month. I should know. My wife and I purchased one back in Spring of 2023.

The total interest on the new car would be $7,198.56 {not including higher insurance, increase in the likelihood of theft, maintenance, and mishaps}. Let’s say instead, you buy a used $30,000 equivalent with a payment structure. This will cost you almost $500 per month. The total interest would reach $4,000. This equates to an extra $400 per month.

Especially as inflation peaks, every dollar counts.

Taking on unnecessary debt

Most Americans spend more than they own. Taking out consumer debt for lifestyle expenditures can seem innocuous in the short term however it’s highly flammable to your future wealth. One of the worst culprits is credit card debt. At over 25 percent interest, it’s a recipe for long-term poverty. This is like buying a $1,000 TV for $2,402.48 (if you made minimum payments for 10 years and 8 months).

Caution: While rental properties can bring in income; short of HGTV miracles, the dream of getting Flipping rich is out of reach in 2023+.

The $10,000 decision requires that you become an income-producing household versus an indebted one. Sometimes even side hustles can beat your raise. According to the US Bureau of Labor and Statistics, the average household brought in $94,000 in income in 2022. A raise of three percent would be $2,820, after payroll taxes that amount would dip to about $2,250 or $188 per month. Let’s say you focused on having a side hustle that brought in $100 per week, that’s $400 per month.

Clarity is the whole point of this exercise. The $10,000 decision is not always a simple one, however in the grand scheme, it may amount to financial freedom.

The big ticket decision: $100,000 or More!

The headlines are maligned with stories of the lack of affordable homes and higher-than-expected mortgage rates. But where was this enthusiasm when mortgage rates were near 2% in 2020? The lesson here is to stay prepared for long-term decisions. Don’t wait until opportunities pass by to voice concerns. The big-ticket actions carry all the weight in your financial world.

Where you live and what you buy matters

Renting when you could buy a house and build equity through appreciation and loan pay down can be a $100,000 decision in a year with a lifetime worth of wealth for your future. However, buying the wrong house that’s overvalued, is a recipe for disaster. The same can be said for not being ready to own a home while spending too much on $100 daily decisions.

Always lean toward putting yourself and your family in a position to win that drafting a 5-10-20 year plan. Contrary to social media, whether you call your home an asset or liability, you still need a place to sleep and your kids’ kids would very much appreciate if you left something more than a rent-here recommendation list.

What you do for work matters too

Most people attend higher education with no real goal or purpose. It makes sense that most finish college with “useless” degrees. A term used for people who often pivot into new careers or niche down into the right career. In the end, careers matter. Some pay over six figures, while many struggle to keep up with less than $70,000 offering.

Additionally, most high-performing jobs are regional. You might need to move for the bigger pay with more options.

You really should be investing

As interest rates rise and inflation peaks north of nine percent for more goods and services in 2022, it’s now mandatory to invest for the long term. Starting with zero dollars, these are the highest potential return on investment options:

• Education and Certifications
• Soft and Technical Skills
• Network (personal and professional)
• A scalable business (preferably sales or digital)
• Real Estate (or RE investment trust)
• Index Investment Funds like $VOO
• Mutual Funds, Money Market Accounts, and/or Bonds
• Local savings account at 0.01%

The value of indecision

People don’t realize that every day they are making $10 to $1,000,000 decisions. Even an indecision is still a submission to the type of life you would like to live. I usually ask my friends, “Would you feel comfortable making these decisions for someone else.”

Most of the time, the answer is No. The pressure mounts at different tiers of the game. Don’t be less on the sideline, cheering for your favorites while booing another. In the end, you are still on the sideline. They are still winning. Indecisions lead to grief, regret, and poverty.

Each of which, has an effect on you at your core. When you stop, just know that the world keeps moving. The nature of life is a direct challenge toward your willingness to overcome adversity and change. Be timely and get in gear.

Start making choices that carry weight and value; you will start seeing results.

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