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In a Sept. 23 video for The Rachel Crews Show, Crews, a personal finance expert and speaker, noted recent research that found that “the vast majority of people would rather have financial security than be millionaires.” Crews went on to say that she generally agrees.
This may come as a surprise given Cruz’s dedication to educating others on how to build financial security and wealth. Cruz boils it down to one question: is it better to live a comfortable life or dedicate yourself to the hard work that will make you a millionaire?
“Having financial goals is great,” Crews said, “but I’ve noticed that sometimes when we try to hit these vague numbers, it can end up being a really empty goal, like, ‘I want to be a millionaire by 35!'” He went on to offer a few reasons why.
Missing out on life
You can probably achieve your goal of becoming a millionaire, and you probably will, but you’ll likely spend close to a decade “just being miserable” if you work hard for it, Cruz said. The effort, focus, and almost obsessive dedication it takes to reach millionaire status can take up your entire life. On the other hand, building financial security (while not becoming a full-on millionaire) allows you to actually live and enjoy your life.
The more you have, the more you need and want.
Once your net worth hits $1 million, “the finish line keeps moving,” Cruz said. Once you’re a billionaire, the urge and instinct is to keep growing that number and keep pushing it higher and higher. “Your net worth becomes your self-worth,” Cruz warned.
Compound interest works best for you over time
Finally, Cruz argued that compound interest works best in the long term. Cruz made it clear that focusing on becoming a millionaire, rather than accumulating enough income to make you and your loved ones comfortable, is an exhausting strategy. Instead of striving to make millions as quickly as possible, Cruz recommended saving and investing a little each month (specifically 15%) to let it grow over time.
