What is a life changing amount of money? it might be less than you think.
Have you ever thought about how great it would be to win a lump sum of money? Wouldn’t a chunk of cash help you fix those financial issues you’ve been struggling with?
You might expect people to dream of astronomical amounts when thinking of how much money they would need to change their life for the better. But the truth is, the amount of money to make positive changes to your life might be less than you think.
According to a survey done by OnePoll on behalf of Self Lender, average Americans consider $19,800 to be a life changing sum of money.
First of all, I want to applaud the honesty of the people polled. I’ve always believed that the amount of money need to positively impact our financial future is lower than expected, especially if that money is used wisely.
If you are truly honest with yourself, you don’t really need a million dollars to make a positive impact to your financial future. And if the number really is lower, there are things you can do to get this life changing sum of money, instead of waiting to win the lottery.
Here is a quote from the article:
“But know this: If $19,800 is a life-changing sum, you don’t need to sit back and pray for a winning lottery ticket to get it. You just need to work hard, make smart choices, and perhaps exercise a bit of patience as you push toward that goal.”
I believe everyone, no matter what their paycheck amount, can reach a place of financial security. And it all starts with not living paycheck to paycheck. If you have money left over each month, you can reach these realistic “life-changing” money goals.
And if you are smart, you can use this money to fuel a plan toward financial independence and financial security.
That really is what my financial plan is all about. Make extra money and put that extra money to work to make more money.
Take a second to really think about how much money it would take to positively impact your financial life.
- This might mean enough money to pay off your credit cards or student loans.
- This might mean enough money to start investing and getting your money to work for you.
- This might mean finally setting up that emergency fund or retirement account.
I’m pretty sure for most people this life changing amount of money is way less than a million dollars.
Now that you have a life changing sum of money in mind, here are some things you can do to get that money (that doesn’t involve a lottery ticket).
Decrease your spending (and invest the extra money). If you don’t really think about your finances, it is really easy to spend every penny you make, and then some. By budgeting and making smart money choices, you can decrease your spending, and use the extra money to make more money by investing.
Increase your income (and invest the extra money). There are things you can do to get a bump of cash, or increase the amount of money coming in. The trick is to increase your income and investing the extra money, instead of just spending it on something frivolous.
The point is, it probably wouldn’t take that much money to make a huge impact to your financial future, especially if you start investing. But you can’t sit around and just wait for it to happen. Only by making some changes can you either decrease your spending or increase your income.
But once you make these adjustments, don’t forget to put the money to good use. That is where the real life changing impact of your effort can be felt over the long run.
Imagine investing and getting higher returns than other investment opportunities. Do you see how this can help you accumulate wealth faster? Yes, this is possible.
Knowing that you don’t need millions of dollars to positively impact your financial future should be encouraging. The trick is to take the first step, be consistent and stick to the plan.
You can do wonders with less money than you think.