Lifetime Wealth

Human lifespan

The maximum (recorded) life span for humans has increased from 103 in 1798 to 110 years in 1898, 115 years in 1986, and 122.45 years (Wikipedia). Some scientists believe that the first person to live to 150 years is alive today! Human life expectancy in US is ~ 80 years (Wikipedia) and growing. Keep in mind though that life expectancy is an average that includes infant mortality, death from disease, violent deaths, etc. The point I’m trying to make is that there is a good chance that you will be around for a while and with a little know-how, some planning, and a lot of discipline you can have a very comfortable, even luxurious life thus achieving a Lifetime Wealth

Lifetime Wealth

Lifespan vs. life expectancy: http://www.news-medical.net/health/Life-Expectancy-Versus-Life-Span.aspx

Lifetime wealth

The purpose of this post is to illustrate the relationships of expenses, debt, vs income and investments over your lifetime to draw a picture of lifetime wealth. This isn’t a step by step guide to riches, my intention here is to make you look at a big picture. The message is simple: you don’t want to work for living your entire life. In fact, you should strive to condense the amount of time you spend actively working to make time for better things in life (insert your favorite past time here). How cool would it be to live 100+ years while only actively working for 10?

We are so bogged down with our daily grind that we rarely step back and take a look at a big picture to get a better understanding of where we are in life, how we got there and what to do next. This post goes hand in hand with definition of wealth and is meant as a follow up to it.The following illustration will help drive the message home

  • As i said earlier – All it takes is a little know-how, some planning, and a lot of discipline.

We will compare 3 different scenarios of lifetime wealth (or lack thereof) . You can see the difference between them and hopefully will draw some inspiration after seeing a full picture

traditional_cycle (1)Scenario number one:

The first scenario follows a typical North American middle class individual, who accumulates a lot of debt early on and struggles with it for the rest of his life. He develops bad habits which continue to hold him back and prevent him from achieving financial freedom and lifetime wealth. As his income grows so do his debts and expenses. As sad as this sounds, this is a very common scenario that most of the people fall under, and it’s even more profound in the lower income circles where people work for living their entire life and have little to nothing to show for it. They are stuck in an infinite loop of barely covering their debt and living expense payments with their income

 

Scenario number two:

In the second scenario, our subject accumulates some debt and some bad habits, but catches herself early on, takes drastic measures and reverses her financial fate setting herself up for success and achieving lifetime wealth later in life

I will tell you this right now. There is no such thing as too late! Later is better than never! Sooner is better than later and today is better than tomorrow!

Scenario number three:

 

And in the last scenario, a person is born in a wealthy family where he/she first learns about wealth,

then inherits some of it and continues to grow it while enjoying their life to the fullest. They start their life debt free and may never have to actively work for their income using passive income from inherited assets.

We can drum up more scenarios, but i hope that the three illustrations above give you the big picture. Now imagine your own financial life span. What would you do with yourself if you had financial freedom to not work? Would you give back? Spend more time with family & Friends? Travel? Learn a new skill? Imagine it, and make it happen!

Some people call this retirement. I don’t like this term, I simply call it achieving lifetime wealth.

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