Harvesting Wealth: The Power of Gratitude
As we gather around the Thanksgiving table, it’s a time to reflect on what we’re thankful for. With over 62% of Americans living paycheck to paycheck, it’s easy to be preoccupied with what we think we need*. However, at Beanstox, we see a transformative power in gratitude, not just for our well-being, but also for our financial health. Keep reading to see what we mean, and how this concept can help.
As we gather around the Thanksgiving table, it’s a time to reflect on what we’re thankful for. With over 62% of Americans living paycheck to paycheck, it’s easy to be preoccupied with what we think we need*. However, at Beanstox, we see a transformative power in gratitude, not just for our well-being, but also for our financial health. Keep reading to see what we mean, and how this concept can help.
A Path to Financial Well-being
Gratitude is more than simply being happy. It is a way of thinking that can help your financial health. Being grateful for what we have can make us less hungry to have “more” and can save us from useless impulsive purchases. Kevin O’Leary, Beanstox Chairman, advises a simple yet effective approach: “Every time you buy something, ask yourself, ‘Do I really need this?’ This question alone could help people save 15% of their hard-earned money. Then, by investing these savings, which could compound at an assumed 7% annual return over time, even those earning an average income could retire as millionaires**.” This discipline starts with gratitude. By appreciating what we already have, we can resist the urge to buy more and instead, save and invest a greater portion of our income, building wealth over time.
Building Wealth Takes Time
Financial independence is a normal goal and involves having enough income or wealth to pay for the things you need. Of course, the more you decide you “need” the longer it may take to reach the required level of income and wealth. Although it is probably obvious, many people forget to reduce what they decide they “need”. However, doing so would let them save more, invest more, and achieve financial independence sooner in life. Achieving financial independence takes time, and requires patience and perseverance. Practicing gratitude helps us stay grounded and patient, understanding that building wealth is a gradual process. It shifts our focus from immediate gratification to long-term goals.
Redefining Needs and Wants
Although some people really do need more income to cover real “needs,” for many people, reevaluating needs and wants can be a game changer. More isn’t always the answer. By being grateful for what we currently have, we can clearly distinguish between our needs and wants, helping us make better financial decisions.
Beanstox and Gratitude
Beanstox has recently introduced two free1 services to help get you started:
Power Savings: Lets you skip the banks and earn over 5% by investing in T-Bill ETFs².
Stocks 500: Your fast track to owning the stock of 500 leading US companies by investing in S&P 500 tracking ETFs³.
This Thanksgiving let’s toast to gratitude – our secret ingredient for a prosperous future.
We thank you for reading and would be pleased to receive your comments at info@beanstox.com.
Source:
*CNBC “62% of Americans are still living paycheck to paycheck, making it ‘the main financial lifestyle,’ report finds”. October 31, 2023.
**Salary assumptions support by Bureau of Labor Statistics as mentioned in Forbes “Average Salary By State In 2023”, August 23, 2023. Average annual salary nationwide: $59,428. Average monthly salary nationwide: $4,952. Assumes investing 15% of monthly salary: $740 / month over 40 years at an assumed annual rate of return of 7%, compounded each month, and assuming the funds stay invested throughout the investment period, resulting in a portfolio value over $1,900,000.
Returns are hypothetical annualized returns, assuming a properly diversified investment portfolio. Performance is provided for illustrative purposes, and it is not indicative of past performance or any Beanstox portfolio or any client’s experience using the Beanstox App. The returns do not reflect fees or the cost associated with investing. Content is meant for education purposes on the power of compound interest over time, and it is not intended to be taken as advice or a recommendation for any specific investment product or strategy.
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