Issue link: https://read.dmtmag.com/i/614658
JOBS for TEAMS | 12 www.jobsfor teams.com Manliness The Art of by Brett and Kate McKay courtesy of artofmanliness.com D o you feel like you're not getting ahead with your finances? That no matter how hard you work or how much extra money you earn, you're still in the same place as you were a year or even five years ago? It may be that you have the wrong mindset about your finances. The authors of The Bogleheads' Guide to Investing (a book inspired by the sage investing principles of Jack Bogle) describe two mentalities when it comes to personal finance: the paycheck mentality and the net worth mentality. A person with a paycheck mentality just focuses on increasing their income in order to increase their wealth. A person with a net worth mentality also seeks to boost their income, but builds their wealth through saving and investing as well. Pretty straightforward, right? The second path seems like the obvious tack to take. And yet many people are stuck in a paycheck mentality. The problem, according to the authors, is that it's easy to conflate income and wealth: "From the time we are old enough to understand, society conditions us to confuse income with wealth. We believe that doctors, CEOs, profes- sional athletes, and movie actors are rich because they earn high incomes. We judge the economic success of our friends, relatives, and colleagues at work by how much money they earn. Six- and seven-figure salaries are regarded as status symbols of wealth. Although there is a definite relation- ship between income and wealth, they are very separate and distinct eco- nomic measures. Income is how much money you earn in a given period of time. If you earn a million in a year and spend it all, you add nothing to Build your wealth: Graduate from a paycheck mentality to a new worth mentality