How To MOVE UP To The Next Level Of Wealth

About this video

• Video Title: How To MOVE UP To The Next Level Of Wealth
• Channel: Dave Zoller, CFP®
• Speakers: Dave Zoller
• Duration: 00:06:58

Overview

This video explains how to advance to higher levels of wealth by focusing on net worth rather than just income. It introduces the "0.01% rule" as a practical method to determine safe daily spending, allowing enjoyment of wealth without jeopardizing its growth. The video also highlights common pitfalls, such as lifestyle inflation, and provides actionable steps for viewers to implement.

Key takeaways

• Wealth vs. Rich: True wealth is defined by net worth (income not spent) and financial freedom, not just current income.
• Spending Based on Net Worth: The wealthy spend money based on their net worth, not their income, which is crucial for long-term wealth building.
• The 0.01% Rule: This rule suggests you can safely spend 0.01% of your liquid net worth daily without harming wealth accumulation, providing a balanced approach to enjoying money.
• Investment Growth vs. Spending: The rule assumes investments grow by approximately 0.01% per day, equating to a conservative annual growth rate of around 3.7%.
• Avoiding Lifestyle Inflation: The 0.01% rule helps prevent lifestyle inflation, where expenses rise to match income without a corresponding increase in net worth.
• Actionable Steps: Viewers are encouraged to find their liquid net worth, determine their wealth level, calculate their daily spending allowance, and keep this number in mind for spending decisions.