Spending money does not equal wealth.

• Let's say between a little bit of a fancier car, larger house and other great lifestyle items, we can increase our spending by $500 a month. (01:45)
• And so for example, we can help ourselves miss out on an extra $500 a month savings for say the next 30 years, which if it grew at an assumed 10% would come out to over $1.1 million. (02:08)
• Furthermore, if the $400,000 earner is saving $60,000, that means they are living on the other $340,000 a year. When they retire will they want to give up all those great lifestyle items they have grown accustomed to over the last 30 years? (03:25)

Quote for the episode: "And so instead of believing spending money means that you have wealth, you can instead take on the mantra of "it is not about how much you make, it is about how much you save." (02:39)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.