An AP-CNBC Poll reported on Yahoo News this morning shows that folks aren't too confident about becoming millionaires these days. In the US, Great Britain and Australia, less than 30 percent of those surveyed think it's likely that their personal net worth will total at least a million dollars/pounds in the next ten years. In fact, the US weighed in at just 21 percent and Britons at a dismal eight percent.
Reading further, it's no mystery why those quoted won't make it. Although the stated priorities if they had a million include "save it, invest it, buy real estate, pay down debt," no one seems to be doing any of that now. Instead, they're waiting to win the lottery or marry into money while spending whatever they make and maybe even more. I know, I know - saving money in this economy is impossible for the Average Joe. But guess what? Making wise financial decisions is possible for anyone every single day.
Is Being a Millionaire the Answer?
It's easy to confuse accumulated wealth with financial independence, but they are two very different things. Many people assume that a million dollar net worth equates to financial security. But think of the lottery winners you've heard about that are broke again in a few years. If you don't make wise financial decisions with what you have now, you are unlikely to start when you have more money.
The real key to the question here is not whether you need a million to be secure but how to be secure with what you have. Consider this: true financial security is not determined by how much you're worth but rather by how little you need. Granted, having more money can make it easier, but only if you use it wisely. If not, you can be back to scraping by in a hurry.
So how about it? Are you making wise decisions with your current finances, or are you just skating by wishing for your circumstances to change?