Do you own or finance your lifestyle?

While we all know we live in a capitalistic society, only a few understand what that really means.

For example, most kids I know want to have a career in professional sports but no one is talking about owning a professional team.  As a player you can be replaced and lose money. As an owner you get paid to be replaced.

I like the latter option better.

In the work I’ve done with my clients over the years, I find the question of owning vs, financing their lifestyle  is one of the least asked yet most important questions anyone will ever ask.

When I ask, “What is the lifestyle that you want to have and maintain?”  I always seem to get a pause with no answer. That becomes the first problem we must handle. Owning  your lifestyle is necessary for creating a financial legacy.  You can not give something away that you do not own.  We fail to realize that as long as our lifestyle is based off of our job instead of a asset that we own, we are financing our lifestyle.  Here is why; if we lose that job, we start to lose things.

Here is an example:
Let’s say that your mortgage is $1,000 a month and it takes additional $1,500 to maintain your standard of living (insurance, food, eating out, travel, etc…).  That makes your total cost with debt $2,500 a month.  In this example, your current living cost of living is $30,000 a year. We use the term “living cost” rather than lifestyle because debt is not part of lifestyle. In fact, debt is a lifestyle killer. We then help you put a plan in motion that will allow you to generate $30,000 a year—whether you are working or not.  This includes restructuring your debt to reduce the interest and invest the savings in a Mutual Fund that pays 6% a year.  This would create an asset that helps pay for your lifestyle.  And an asset, unlike your job, can be willed to the next generation because you own it.

When you get start to understand this process,  you start to see how the Rockefellers, Kennedys, and Fords pass their lifestyle on to their kids. They are truly free because they own the lifestyle they have and the assets that pay for it.

Call us at (919) 794-4538 or fill out the contact form for a free consultation today.


Carlos Mims
President, Mims Financial Group