Are you Happy?

Hey there, and Happy Holidays. With Christmas in full swing it always reminds me to focus on the little things and ask the question! Are you happy?

I've coached and chatted with lots of folks and many of them have a goal or a certain amount of income or networth as their mile maker. Even some of them say they will be HAPPY when I have $XXXX dollars. But, shocker it's not just about the cash in your bank. Happiness for me is more about making progress in the right direction. The direction that is giving me back more time and freedom.

So, for those of you wanting to make that undertake that let's dive into the passive wealth-building process for 2024, and find out how it can not just boost your bank balance, but also your happiness.

Stages of Wealth Building:

1. Groundwork Phase: Like prepping the soil before planting, this is about setting your financial foundation. Pay off debts, build an emergency fund, and start thinking about investment strategies that suit your lifestyle and goals.

2. Learning and Planning Phase: Knowledge is power, right? Immerse yourself in financial education. Books, podcasts, webinars - absorb them all. Craft a plan that aligns with your risk tolerance and long-term objectives.

3. Action Phase: Time to dive in. Start with low-risk investments like index funds or rental properties. Remember, the turtle won the race, not the hare.

4. Growth Phase: As your portfolio grows, diversify. Think stocks, bonds, real estate, maybe even some crypto. The key? Don't put all your eggs in one basket.

5. Maintenance Phase: Regularly review and adjust your investments. Keep an eye on market trends and stay adaptable.

Lessons and Analogies:

Imagine passive investing like gardening. You plant seeds (invest), water and nurture them (manage and diversify), and eventually, you reap the fruits (returns).

Research and Data Insights:

Studies show that passive income can lead to increased happiness, but only if it's aligned with your personal goals and values. It's not just about making money; it's about making money work for you. Dan Ariely, a behavioral economist and one of my favorite authors, offers valuable insights. Ariely suggests that the way individuals perceive and utilize their passive income can significantly impact their happiness. If passive income is used in a manner that aligns with personal values and goals, and less as a comparative metric against others, it is likely to contribute more effectively to overall happiness. It doesn't matter how much the income is, but whether it is actually used to your benefit. I use the example of the retired schoolteacher who has her house paid off and makes $4,000/month on her pension but has next to no expenses. Therefore, she is almost totally unaffected by economic conditions and is living financially free.

Actionable Advice:

• Start small: Even a small investment can grow significantly over time.

• Stay consistent: Regular investments, even in small amounts, can lead to big gains.

• Be patient: Wealth building is a marathon, not a sprint.

Long-term Perspective:

Think about what genuinely makes you happy. Is it spending time with family? Traveling? Passive wealth building can give you the freedom to enjoy more of those moments. If you enjoy work, that's amazing, and you have found a career that fulfills you. However, even with that, my friend Dr. Tom Burns, author of "Why Doctors Don't Get Rich," loved his job. He was a top orthopedic surgeon and even the doctor for the US Ski Team. But there were aspects of his job he didn't enjoy, such as doing the paperwork, insurance forms, and booking appointments. However, his financial freedom allowed him to structure his position so that he only had to do the things he loved (the surgeries) and everything else was handled by others. He was paid less but had more freedom and enjoyed his life more.

Interactive Elements:

• Reflect: What's one financial goal you want to achieve in 2024?

• Action Step: Identify the one thing you need to do first to achieve that goal. Put in an offer, talk to a broker or what and then do that in January.

Conclusion:

So, are you going to take the steps towards a happier, wealthier 2024? Remember, it's not just about making money; it's about making the right moves. I am cheering for you as you embark on your journey and turn those financial dreams into reality!

Merry Christmas and Happy New Year

Jake