The Personal Finance Podcast
How much do you need to Actually Feel Wealthy? (This will Shock You!)
Mon Jul 10 2023life insurancefinancial planningwealthwork-life balancepersonal valuessocial media influence
Description
The episode covers topics such as life insurance comparison, the amount of money needed to feel wealthy, the importance of financial planning, personal values, and achieving work-life balance. It emphasizes the need for a financial plan, understanding money psychology, and aligning wealth with personal values. The episode also explores different perspectives on wealth and the non-monetary benefits it provides.
Insights
Financial Planning is Crucial
Having a financial plan is crucial for building wealth and achieving financial goals. It gives individuals more control over their finances and provides peace of mind.
Wealth is More Than Money
Wealth is not solely defined by money. Americans prioritize a fulfilling personal life, work-life balance, good health, and experiences over maximizing earnings and material possessions.
Work-Life Balance and Wealth
Achieving work-life balance is important for building wealth. Flexible jobs and entrepreneurship can provide more time freedom and allow individuals to pursue their passions.
Social Media Influence on Views of Wealth
Social media plays a significant role in shaping views of wealth, especially among younger generations. Financial planning, understanding money psychology, and aligning wealth with personal values are essential in navigating social media influence.
Chapters
- Comparison of Life Insurance and Online Checking
- How Much Money is Needed to Feel Wealthy
- Financial Planning and Building Wealth
- What Wealth Means and Priorities in Life
- Achieving Work-Life Balance and Building Wealth
- The Importance of Financial Planning and Personal Values
Summary
Transcript
Comparison of Life Insurance and Online Checking
00:00 - 06:52
- Policy Genius offers easy comparison of life insurance quotes from top insurers
- Life insurance policies start at $25 per month for $1 million of coverage
- Some options offer coverage in as little as a week without medical exams
- Policy Genius has licensed agents who can help find the best fit
- No added fees and personal details are private
- Chime Online Checking account offers perks like fee-free overdrafts and early direct deposit
- Chime allows fee-free money transfers and cash withdrawals
How Much Money is Needed to Feel Wealthy
06:30 - 12:46
- The podcast discusses how much is needed to feel wealthy according to a Charles Schwab study
- American respondents said they need $2.2 million to feel wealthy in 2023
- 48% of respondents actually feel wealthy with an average net worth of $560,000
- $2.2 million would put someone in the top 6% of households in the US
Financial Planning and Building Wealth
12:26 - 19:15
- Only about a third of Americans have a documented financial plan, but those who do feel more in control of their finances
- Having a financial plan is crucial for building wealth and achieving financial goals
- 65% of Americans have no financial plan, while only 26% have no plan at all
- The two main reasons people don't have a financial plan are lack of money and thinking it's too complicated to create one
- Everyone needs a financial plan regardless of their income level or current financial situation
- Creating a financial plan can help you navigate through financial challenges
- It is possible to create a plan in just an hour a month and automate your finances
- Financial plans help set and achieve goals, manage budgets, plan for emergencies, build wealth, retire comfortably, protect against inflation, manage risk, save on taxes, and build a legacy
- Having a financial plan gives peace of mind and allows for time freedom
What Wealth Means and Priorities in Life
18:45 - 24:46
- 32% of respondents said money was the most important piece of wealth
- 26% said assets and 25% said just covering necessities
- 11% said luxury and 9% said giving
- Americans generally choose non-financial assets when asked to describe wealth
- 72% prioritize having a fulfilling personal life over working on their career
- 70% prefer not having stress over money rather than having more money than others
- 70% would rather enjoy experiences than own many nice things
- 69% value a healthy work-life balance over maximizing earnings
- 67% prefer being generous with loved ones now instead of leaving an inheritance after passing away
- 63% prioritize good health while 37% prioritize success
- Wealth provides non-monetary benefits like time with family, less stress, and enjoyable experiences
- Flexible jobs can provide more time freedom and better work-life balance
Achieving Work-Life Balance and Building Wealth
24:19 - 30:23
- Work-life flexibility can be achieved through a flexible job or entrepreneurship
- Consider barista fire or part-time work to retire early while pursuing something you enjoy
- Explore options like starting an online business, consulting, teaching, or tutoring
- Americans value time more than money, with Gen Z and boomers prioritizing time the most
- Having control over your time is empowering and important for work-life balance
- Comparison to others' wealth building journey can steal joy, focus on your own goals
- Limit social media consumption if it causes stress and anxiety about comparison
- Invest in financial education to reduce stress and understand how people spend money
- Younger generations rely on social media for financial advice and views of wealth
The Importance of Financial Planning and Personal Values
29:54 - 31:28
- Americans use social media to see how others around them are doing and for financial advice
- 43% of Americans follow influencers who share financial advice on social media
- 38% of Americans feel that their views of wealth are influenced by people who post on social media
- Younger generations rely on social media for knowledge about wealth
- Putting together a financial plan is crucial for building wealth
- Learning how to invest your money is essential for retirement
- Understanding money psychology is key to building wealth
- True wealth should align with your values
- By putting together a financial plan, understanding money psychology, and identifying your values, you can become successful with money