This video on YouTube titled “Please Buy More Stuff” portrays American consumerism and the message that corporations bombard us with every day through the media and advertisements. The underlying message is that buying or doing these Things will make you happy, make you feel whole, or otherwise give you a better life than you currently have.

       Here’s the secret though…none of it is true! Buying more Stuff, having more Things, or being richer than your neighbor is not really going to make you happy or fulfilled. Most of us already have more than we’ll ever need but we still can’t seem to be happy. So we start to believe the message coming from Corporate America that if we buy more Stuff and become wealthier then we can have the “Good Life” and be much happier.

       Why do we think this Stuff will make us happy? What’s the purpose of it all? You can’t take it with you when you die, and it’s highly unlikely that any of it is going to make your life longer. Wealth and material Things just aren’t going to matter when you’re dead. You’re giving up time (to earn money) that you could have spent with family and friends, pursuing your passions, or enjoying your hobbies just to buy more things. Many of us start spending money we don’t even have to get more of this stuff, and then we get trapped in an endless cycle of earning money to pay off debt while we keep buying even more stuff.

       So why do you need it? Why do you need the things you’re being told you need? The truth is you probably don’t. You can break free from this endless cycle of consumerism. Do you want to know the secret to escaping the rat race?

       It’s called contentment. It’s not easy, especially in America, but it is so amazingly freeing. You’ve probably got food, clothes, shelter, and so much more. We take these things for granted, but what else do we really need? A new iPhone? A shiny new car? A bigger house? Once you realize how truly wealthy you are then you can begin to recognize that you don’t need more stuff to actually be happy. (Granted, if you are living in poverty then a little more money can make a big difference, but beyond that money can’t make you happy.)

       Stop and ask yourself right now – What really makes me happy in life? Then start figuring out how you can get more of that. Most of the time the things that really make us happy in life are our relationships with family and friends, our passions, or having a purpose – not the Stuff we are told to buy on TV.

       The truth is being happy with what you have and resisting the messages from Corporate America will bring you far more happiness than a big raise, huge investment gains, or more Stuff. We need to wake up from the consumeristic American Dream and grab hold of the life which is truly life!

       If you can remember and understand the following three financial formulas, you’ll be well on your way to building wealth. They’re not complicated, they’re not fancy, but they will put you ahead of 90% of the population. Well, I don’t really know that 90% figure is true, but it sure seems that way!


Formula One: The Debt Formula

       In simple terms, 2 – 3 = DEBT. If you spend more money (represented by the 3 piles of money) than you earn (represented by the 2 piles of money), you will go into debt. There is no way around it. Spending even one dollar more than you earn is bound to lead to financial destruction if carried out over a long enough period of time.


Formula Two: The Broke Formula

       Once again in simple terms, 2 – 2 = BROKE. If you spend every penny you make, you will be broke. There is no way around it. You will be living paycheck-to-paycheck until you can break the cycle and begin following Formula Three.


Formula Three: The Wealth Formula

       OK, this one is a little more complicated, so pay attention! 2 – 1 = SAVINGS. If you spend less than you earn, you’ll have money left over to save. If you take that savings and invest it, you get WEALTH. How do you invest it? There are numerous ways, but here are a few:

• Pay off debt!
• Invest in yourself! (Education & Training)
• Invest in the Stock Market! (In a low-cost, tax-efficient, diversified portfolio)
• Invest in Real Estate! (Be careful with this one!)
• Start a Business! (Probably the best option if you have entrepreneurial skills and a good business idea)

That’s All the Math You Need!

       Well, there is one other formula you’ll need to understand – compound interest. We’ll talk about that later though. For now, just figure out how you can start following The Wealth Formula if you’re not already. Oh, and don’t spend any more time trying to figure out other financial formulas just yet. This will be all you need for a while!