#33: Breaking the Millionaire Myth

Going to explain a distinction that has helped me tremendously. It can save you years of unneeded stress achieving unnecessary goals and earn you decades of financial, time and location freedom.

Cash Flow > Being a Millionaire

This notion is not well explained in formal schooling of any kind (most financial concepts aren’t). I learned the concept through self-education and practical life experience over the years.

Especially in social and traditional media, false importance is placed on becoming a “Millionaire”.

People blindly chase it thinking it’s going to have some sort of freeing effect on life when, in reality, the word is simply a status symbol. It denotes, on paper, you have net worth of $1M – typically through more assets than you have liabilities. But it usually doesn’t correlate to your ability to live right now. We can't buy groceries or take the kids to the doctor with words on a piece of paper. We need cash, in hand, for that.

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Years ago, I read a statistic and headline that stuck with me. It reads…

80% of millionaires didn’t reach millionaire status until the age of 50, and just 1% became a millionaire before the age of 40. Don’t believe everything on social media. There is no rush.

I’ve always appreciated this phrasing because the world believes too much in instant. Real financial ability comes with patience in execution, and the headline above appropriately expresses that value.

I technically reached millionaire status in my early 30s, mainly through 401k (maxed contributions since age 21) and a few apartments I bought in my mid 20s that appreciated in value during the real estate boom cycle of the 2000s.

Even though I was a “millionaire”, I WAS NOT FREE.

It meant nothing in the moment. I still had to work every single day, for years. And today I still, technically, cannot use my 401K for another 17 years!

‘Millionaire’ is just a status, an indication of activity and effort.

Cash Flow to live is life.

I help people focus on practical freedom via cash flow, because cash flow frees you forever. To get it, buy things that pay you. And with them fight to be free:

1. Get your basic needs covered.
2. That allows you to destress and control your time.
3. Leads to time freedom – mental and physical space to do what it is you want. Experiences and relationships you have more time for create more relationships and experiences. It's a free flowing cycle. Life compounds on itself. And you can do this because…
4. You’re not financially obligated to anyone (employer) because your basic needs are covered via cash flow. As a result you forever have time to access life and earth as intended.

Get my point? Why focus on Millionaire Status?

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How it went for me:

Monthly Family Basic needs (since approx. 2010 to now)

• $2400 mortgage, insurance, etc. (humble U.S. based home)
• $2000 bills, gas, food, other
• $2000 kids, life, travel, fun
• $0 on cars and junk (my 2005 Infiniti is just fine)

The mindset should be secure and protect family basic needs and always be in control (not at mercy of employer, for example). Then protect it and build from there (any new entrepreneurial or life endeavor you don't pillage your basic needs resources - where so many falter).

By 2012, met need of $6400 by cashflow coming from 6 paid off condos (all around $100K a piece, bought with $5K-$25K down payments saved via paychecks over years (Maryland and Virginia)). Used paychecks to systematically buy and pay them off over a decade (note: decades, not days. Be systematic and patient).

No one has controlled my time since. No one ever will.

Then I chose to stay in or start careers (i.e. policing, military) that I really enjoyed. I continued to use the pay to buy things that paid more cash flow (i.e. real estate, dividend stocks).

I'm not suggesting buy real estate. I'm suggesting get practical.

Focus on buying things that create cash flow (i.e. dividend stocks, dividend reinvestment plans (DRIPs), businesses, intellectual property, real estate, etc.). Engage in financial self-education versus buying consumer goods every single weekend.

That 3rd car you are buying via payments… that is you being the source of someone else’s cash flow. Think about it.

Once you focus on things that create cash flow, what makes you “rich” is life options it affords via your needs being covered.

No Millionaire status needed, but… there’s high likelihood you become a millionaire in the process because the assets you buy tend to go up in value. But focus on cash flow. That's where freedom comes from. It doesn't come from a status.

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Want more detail on this concept?

Try Life On Newsletter 24 – You’re Playing the Game

Want an in depth conversation on true wealth?

Try Life On Podcast Ep. #37 – A Deep Dive into Wealth and Passive Income

These resources will help you realize cash flow is more important than any millionaire status when it comes to Trying Life On.

I realized it along my journey. So can you.

Maurice