If you want to skip the racial slant to this great video, just scroll forward to about 1:55 seconds and listen for 30 seconds …
… if you want to skip the swearing, just scroll forward to 4:06 😛
Chris Rock is a financial genius, he describes the difference between being “rich” (having money to splash around) and being “wealthy”, for example:
– Being ‘wealthy’ means that you buy a walmart store so that you have money to pass on to the generations; being ‘rich’ means that you go out and buy some jewelery
– ‘Wealth’ is passed down from generation to generation; ‘rich’ is blown on a drug habit
– ‘Wealthy’ people preserve their money; ‘rich’ people spend money like water
Surprisingly good financial advice from an unexpected source!
This show always cracked me up, LoL. He definitely has a point.
I always just liked T. Harv Eker’s definition of wealth. He says that the measure of a person’s wealth is the measure of how many months they can go without having to WORK for money.
He makes similar points to our discussions here about figuring out how much you need and that each individual person may not need billions and billions and billions. It all comes down to your individual desired lifestyle ie; your “purpose”.
He gives an example of a nurse who loves what she does and doesn’t want to quit being a nurse, but at the same time, she loves to take a lot of time off and travel, loved the beach and to be at an exotic beach location. She didn’t want fancy cars or houses, just that freedom and always dreamed of living near a beach.
After she finished nursing school and began working as a nurse at around 22 yrs old, she began living WAY below her income level so she could amass a large amount of cash(she reasoned that this was easy, since she had just recently lived off of nothing as a college student and now all of a sudden, she was making 50-60k per year). She took this money, purchased an extremely cheap for the value foreclosure outside of NY where she worked as a nurse(so she starting living in a home with a ridiculous amount of equity in it from the start due to a sizable cash down payment and the extra equity in the home due to the low foreclosure price) and lived in this home for 5 years.
During that 5 years, her local real estate market continued to sky rocket and she realized that she had several hundred thousand in equity in the home, so she sold the home, took all that equity, invested it Money Making 301 style and was able to receive approximately 30k per year in income passively with these investments, so she decided to take part in a nursing program that her hospital offered that only required her to work 6 months out of the year, (for half a year’s salary of course).
She decided to live in NY 6 months out of the year, working in nursing and lived in Fiji the other 6 months of the year doing nothing!
She didn’t have a lot of bling, but she did have 6 months out of the year living in NY and doing the kind of work she loved and the other 6 months were spent chilling in Fiji without having to work and all this began in her 20’s. 😉
I thought it was a great story and great example of finding your life’s purpose and how inexpensive it ‘might’ be for some of us to become free as long as we just don’t want a lot of ‘stuff’.
I’m constantly amazed by our ability to spend up to what we earn if we aren’t really careful. There is always something else to improved for the house, or another “must have” item, and if we aren’t careful, all we’ll get is stuff for a really nice garage sale.
We may earn enough that some people may consider us well off (it is all relative, isn’t it?) , but I sure don’t feel wealthy. But one step at a time, we are getting ahead.
Very inspiring. Makes me rethink the extra money I spend on little things.
This was funny! And you’re definitely right about surprisingly insightful advice from him. He makes great points, even the part about buying rims was a good point. Sometimes we tend to blow money on some of the stupidest stuff. In the grand scheme of things, it isn’t anything we’ll keep long term, nor is it something we really care deeply about. It usually falls into the category of being a material want. When we waste all of our resources on material wants, we will never build wealth. Interesting video!