What’s Poppin’,

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This is the Master Money Newsletter. The Money Newsletter that changes your money mindset. We make you realize your neighbor with the $100,000 SUV is likely broke, not rich. They just took on a $1,200 car payment.
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Here’s what we have on deck today:

📰 Read: Net Worth Vs. Income

📺 Watch: The Best Dividend ETF’s

🎧 Listen: The Advantages of a Taxable Brokerage Account!

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I have discussed Net Worth Vs. Income on the podcast in the past. Like anything, I think there are seasons when you need to focus on each. Let’s dive into both sides.

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​Income Vs. Net Worth: The Basics

Simply put, income is what you're earning from your job plus any cash inflow from assets like rental properties or dividends. We're leaving out assets that appreciate over time here because, well, they're kind of unpredictable and often not liquid.

Net worth, on the other hand, is all your assets minus all your liabilities. It's like your financial selfie, showing you exactly where you stand.

The Early Bird Gets the Income

When you are just starting your financial journey there is one side of the equation I think you really need to focus on, your income. Increasing your income, and learning how to keep that new found income, will make alot of your money problems disappear. So if you are one of our readers in your 20’s (Shout out to the young millennials and Gen Z) then this is what I would focus on first. Here’s why:

1. More Savings = More Wealth: More income isn't about splurging on the latest iPhone but saving more and, in turn, increasing your net worth. It's about swapping instant gratification for long-term financial gain.
2. Supercharge Your Savings Rate: If you want to hit your first $100K fast, you need a high savings rate. And remember, the bigger your nest egg, the more compound interest works its magic!
3. Options Galore: With a higher income, you get more investment options. Real estate, maxing out your 401k, or funding a Roth IRA? More income, more choices!
4. Income: The Financial Snowball Effect: Boosting your income can supercharge your wealth accumulation. It's like adding rocket fuel to your financial snowball!
5. Satisfy Wants, Focus on Wealth: Earning more allows you to afford some luxuries while keeping your eye on the wealth-building ball.
6. A Safety Net for Your Investments: A solid income can cushion your investments during a financial storm.

The only catch? More income can mean more taxes, and it's usually less stable than increasing net worth. This is why we don’t want to focus on just income long term. Net worth is where your generational wealth is.

The Net Worth Narrative

As you get further along in your financial journey, you'll find that net worth starts to steal the spotlight. Here's why:

1. A Cushy Financial Pillow: Growing net worth is like building your financial fortress. It gives you a sense of security that even a hefty income stream can't match.
2. Keep Impulse Buys in Check: Regular income can tempt you to splurge, while net worth tied up in investments is less prone to impulsive purchases.
3. Tax-Savvy Strategy: Wealth, unlike income, isn't as heavily taxed. Plus, you can invest in tax-efficient income streams like dividends.
4. Hidden Perks: Some benefits like child tax credits and subsidized healthcare depend on income, not wealth. So, a high net worth with a moderate income can unlock benefits that high earners can't access.
5. The Real Deal: True wealth is about owning substantial equity in businesses, not just a fat paycheck. Focusing on net worth encourages you to think long-term.
6. Stealth Wealth: Spread across various investments, net worth is less showy than income. If you value privacy, net worth is your friend.
7. The Knowledge Advantage: Growing net worth demands financial savvy. It's a challenge, but it's also a chance for personal growth and lasting financial success.

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Your financial journey is unique, just like you. Knowing when to focus on income and when to switch gears to net worth can pave a clearer path to your financial goals. So, here's to mastering the wealth equation, one sip of morning coffee at a time!
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Be the Smartest at The Water Cooler

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Credit Card Crisis 🚨

​CNBC reports that credit card debt has hit a record high. The main culprits? Online shopping sprees and pandemic-induced stress. But don't fret, they're offering strategies on how to pay down your balance, such as focusing on high-interest debts first and considering a balance transfer card. If only paying off credit card debt was as easy as maxing it out, right?

Generational Wealth Gap 🧓👶

A piece from The New York Times delves into the widening wealth gap between generations. It's no 'Friends' reunion, folks. The older generation is holding onto wealth longer, causing younger generations to face challenges in wealth accumulation.

Home Sweet Home 🏠

​Lifehacker suggests keeping a house diary to track home maintenance, repairs, and upgrades. It's like having a personal 'Dear Diary' moment for your house - who knew adulting could be this organized? Trust us, future you, looking to sell your house, will thank today's you for this neat trick.

Stock Market Rhythms 📈🎵

​Darius Foroux breaks down the cycles of the stock market in a way that even a newbie could grasp. It's like learning to dance to the rhythm of the stock market. By understanding cycles, you can navigate the waves of the market and make informed investment decisions. Get ready to tango with Tesla and waltz with Wall Street!

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High-Performance Book Club 📚

I get a ton of questions from listeners and readers as to what I am reading. So we decided to let you know via the newsletter. The High-Performance Book Club will be a way to share this. If you want to be Elite in your career, business, or with your wealth, then welcome to the club. If you would like to see our previous picks, you can find them here.

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This week, I have a reading tool I purchased that had double my reading capacity. I never thought I would like it but it is one of the best purchases I have made in the last few years.
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​The Kindle Paperwhite ​

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The Personal Finance Podcast 🎙️ ​ ​

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​10 Incredible Benefits of a Taxable Brokerage Account ​

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Youtube

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