5 Signs You’re Richer Than You Think

Most people don’t feel wealthy. But what if your day-to-day habits are quietly building serious financial strength? A recent article from Kiplinger outlined five surprising signs that you might be richer than you think. And none of them involve yachts or private jets… Let’s analyze the habits that signal real, lasting wealth and what to do if you are (or aren’t) on the right track. Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381 ----more---- Transcript: Marc: Most people don't feel wealthy. But what if your day-to-day habits are quietly building serious financial strength? Well, a recent article from Kiplinger outlined five surprising signs you might be in better shape than you realize. So let's talk about that this week, here on Plan with the Tax Man. Welcome into the podcast, folks, as we break things down with Tony Mauro from Tax Doctor Inc., and this week, five signs that you're richer than you think, or at least, I don't know, that's the term it used in this article. I'm going to call it better off, Tony, than we maybe think. I've been talking to advisors like yourself for years, and more times than not, I'd say most advisors say usually about seven out of 10 times, and I'm going to give, maybe not so super specific, but people come in looking at that initial consultation wondering, am I okay? Right? That's the big question. And more times than not, advisors say people are in better shape than they realize. Is that what you see as well in your practice? Tony Mauro: I'd say generally that, yes. They're not, I believe, where they want to be. Marc: Sure. Tony Mauro: Because obviously, they wouldn't be in there, but they're better off than they think. We seldom see somebody that's so far behind that it's impossible to... Marc: Right, right. And I think that's the catch, right? It's kind of like going to the dentist. We all kind of go... Not to equate your stuff to the dentist, but unfortunately, it's a good analogy. People go, "I need to go, but I don't want to go, because I really don't like it." And then you wait until you've got a real problem and then it's a bigger pain. And so I think a lot of times people think, "Ah, I need to go see a financial professional, but I don't want to because going to give me bad news." And more times than not, again, people are in better shape than they realize. So, let's run through this report. We'll put a link in the show description here for folks if they want to check it out. And we'll just do a real simple of these five signs. Where are you at? How are you guys doing with this stuff? So number one, Tony, is emergency fund. Have you prepared one? And I think COVID certainly highlighted the need for this for many people, when you were losing jobs, or not being allowed to come in, and weren't getting paid, or reduced pay, maybe put a squeeze on you if you didn't have that emergency fund. Tony Mauro: Yeah, and this is the first question we ask clients when we're data gathering and whatnot, is to, if they have this. And most don't. Most don't. Most have heard about it, they've never done it, or they've tried it and just basically robbed it and never went back to it. But obviously, most of this types of advice, most planners are going to give you the same thing. You've got to get something like this in place before you can start investing for the future, because of things like job losses, everything that related with COVID, somebody's sick, that kind of thing. So, once you get that kind of stability, then we can kind of move on. Now, we don't have to make you wait to start doing planning until you have six months of expenses saved up. Marc: Right. Great point. Yeah. Yeah. Tony Mauro: It can take several years. But we got to get you at least working on it, even if it's $50, $100 bucks a month, to get money in there. And then the other thing is, I ask them, I said, "Do you even know what a month or two of expenses are?" Or do you just look at that checkbook and say, "Oh, well, we've got a little more money this month, we can spend it, and then we got to quit spending." And that goes to just personal finance there. But you've got to know those two things, and you got to get along that path. Marc: I think the article goes on to say that the average American has about $1000 saved. Tony Mauro: $1000 bucks. Marc: Yeah. That's probably not going to get it done. So you got to work your way, like you said, into some sort of a groove there. And I know there's some debate back and forth about once you're retired, do you really need emergency fund? Because you are not working, so therefore you're 401 and all your different nest egg is really the emergency fund, I suppose. But while you're building up to retirement, you certainly want to have that emergency fund there. Tony Mauro: Yes. Marc: All right, number two on the list was, you live below your means. I'll throw in, you live within your ...