Will you pass the TEST?

By 29 December, 2018Uncategorized

Financial freedom is being in a position to never HAVE to work another day to pay for your living expenses whilst having a fair degree of enjoyment in their life.  This isn’t to say you stop working, it is to say you have the OPPORTUNITY to do so should you wish.  They have enough money and investments to cover any foreseeable expenses on a day to day basis.

Imagine being in that situation.  Imagine being able to work because you WANT to not because you HAVE to.  Seriously, take a moment.  What does that mean to you?  The problem is that most of you reading this are not in this position, despite the income you can generate.

Why?  Because you spend it all.

Parkinsons Law:  “Expenses rise to meet earnings”

I’m going to tell you about two different people.  Their names, locations and jobs have been randomised, but they do exist.

Person 1:  He takes home £500,000 a year easily.  He lives in a big house and drives several flash cars.  His children go to the best schools and he wears only designer clothing.   Recently he decided to add an extension onto his house and had to take out a bank loan to pay for it.  Why?  Because he spends more than he earns and is cash poor.  He probably has less than £10,000 in his bank account and has massive amounts of debt.  He has more month at the end of his money and needs to work hard, long hours to pay for his lifestyle.

Person 2: He does not work for a living and retired from his profession at the age of 45.  He lives in a modest house and drives a car that is seven years old.  He never earned more than £100K a year, and yet his investments bring in enough to cover all his weekly outgoings.  He has no debt and if he decided to do nothing but sit in front of a TV for a month it would have absolutely no detrimental impact on his income.  Last year he decided to spend two months travelling around the far east with his wife.

Who is in the better position?  Who is the richer person?  Person 2 escaped the Wealth Trap and passed the test.  S/he spent less than he earnt and saved and invested the difference.   Yes, s/he never drove the Ferrari, but that’s because s/he realised, early on, that the rush from the expensive nick nack quickly wears off and often, the things you buy end up owning you (Thanks TD).

Western society is now specifically designed to keep you in debt and keep you running your little feet on the treadmill… and it’s all part of the test.  If you are a low earner it does this through high fees for the basics (like travel and mortgages) as well as sucking you in to buy things you don’t need, with money you don’t have to impress people you don’t even know.  For the high earner, western society does the same, only more so.   The more you earn, the more you are enticed to “treat yourself”, to buy things at great expense that will rapidly become worthless.

Remember I’m not talking about billionaires here.  Those are rare individuals that have a craving to succeed.  But the average person, starting at the age of 18 can get to a point where they retire a millionaire at age fifty-five.

“But you might get hit by a bus tomorrow”

Yes, you might.  You might also suffer countless sleepless nights because of your debt situation.  You might lose your job and rapidly become homeless because you have no buffer to fend off your expenses.  You might send yourself ill working a treadmill of your own creation.  You actually have more chance of winning the lottery than being hit by a bus tomorrow.

You as a dentist have another consideration.  The GDC.  They have the ability to strip you of your ability to make a living as a dentist.  So when you think about it, living the “High life” actually caries increased risk.  Don’ think it can happen?  It only takes one complaint, especially if it’s to the ICO.

If only life was easier some say.  Life is exactly how it needs to be to create excellence, because only the most tenacious, the most committed can succeed.  Yes, some people get lucky….but some people also get hit by a bus ;)

That’s why I write my dental books, to try and get this message across.  If you want to check them out, visit my author’s page on Amazon.  There’s even a dodgy photo of me on there so you can actually see what this ranting madman looks like


Have a great and prosperous new year.