Latest / Go Big with Gib Podcast / Ep 143. A Big Salary Won't Make You Rich

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Ep 143. A Big Salary Won't Make You Rich · Go Big with Gib Podcast

• 0:00
  SPEAKER_00: Welcome to the Go Big With Gibb podcast, where we talk to professionals, business owners, and entrepreneurs about their big wins.
• 0:09
  SPEAKER_00: When I first started practicing law, I made$40,000 a year.
• 0:14
  SPEAKER_00: Then I got to raise$48,000.
• 0:17
  SPEAKER_00: And at that time, that felt like progress.
• 0:19
  SPEAKER_00: Then I started my own law firm, and the first year I made about$120,000.
• 0:24
  SPEAKER_00: That was a big jump.
• 0:25
  SPEAKER_00: Then it became$250,000, then$500,000, and eventually more than I ever imagined making when I was a young lawyer earning$40,000 a year.
• 0:36
  SPEAKER_00: And you know what I learned?
• 0:37
  SPEAKER_00: You can make a lot of money and still be broke.
• 0:40
  SPEAKER_00: Think about that.
• 0:41
  SPEAKER_00: Because income and wealth are not the same thing.
• 0:44
  SPEAKER_00: And a high income does not automatically create financial freedom.
• 0:48
  SPEAKER_00: In fact, sometimes the more money you make, the easier it becomes to fool yourself.
• 0:54
  SPEAKER_00: You make more, so you spend more.
• 0:56
  SPEAKER_00: You buy the bigger house, the nicer car, the boat, the vacations.
• 1:00
  SPEAKER_00: Your monthly obligations keep growing.
• 1:02
  SPEAKER_00: And pretty soon you build a lifestyle that requires you to keep making that big income.
• 1:07
  SPEAKER_00: Now, you might look rich, but are you financially free?
• 1:11
  SPEAKER_00: Those are two completely different things.
• 1:14
  SPEAKER_00: And that realization changed the way I think about money.
• 1:17
  SPEAKER_00: Today, when I want to make a financial decision, I try to look in two completely different directions, 20 years from now and tomorrow.
• 1:24
  SPEAKER_00: 20 years from now, what does this decision look like?
• 1:28
  SPEAKER_00: Am I buying assets?
• 1:29
  SPEAKER_00: Am I investing?
• 1:31
  SPEAKER_00: Am I building businesses?
• 1:32
  SPEAKER_00: Am I creating income that doesn't depend entirely on me going to work every day?
• 1:37
  SPEAKER_00: Am I actually building wealth?
• 1:39
  SPEAKER_00: Or am I just funding a more expensive lifestyle?
• 1:42
  SPEAKER_00: That's playing offense.
• 1:44
  SPEAKER_00: But then there's another question.
• 1:46
  SPEAKER_00: What happens if I die tomorrow?
• 1:48
  SPEAKER_00: Because tomorrow isn't promised.
• 1:50
  SPEAKER_00: What happens to my family?
• 1:51
  SPEAKER_00: What happens to the businesses?
• 1:53
  SPEAKER_00: What happens to the debt?
• 1:55
  SPEAKER_00: What happens to all of these financial obligations I've created?
• 1:58
  SPEAKER_00: That is playing defense.
• 2:00
  SPEAKER_00: And I think you need to do both.
• 2:02
  SPEAKER_00: You need to invest, take risk, build businesses, buy assets, try to create extraordinary outcomes.
• 2:08
  SPEAKER_00: That's offense, but you also need insurance, liquidity, estate planning, a plan for your family.
• 2:14
  SPEAKER_00: That's defense.
• 2:15
  SPEAKER_00: And sometimes the best financial decision you make today won't pay off next month or next year.
• 2:21
  SPEAKER_00: So yes, go make more money.
• 2:24
  SPEAKER_00: I certainly plan to, but don't confuse income with wealth.
• 2:27
  SPEAKER_00: And don't confuse looking successful for being financially free.
• 2:32
  SPEAKER_00: Play offense, play defense, and build something that lasts.
• 2:35
  SPEAKER_00: I'm Gib Irons.
• 2:37
  SPEAKER_00: Go big.
• 2:41
  SPEAKER_00: Thank you for listening to this episode of Go Big with Gib.
• 2:44
  SPEAKER_00: If you haven't already, go follow us on social media at Gib Irons.
• 2:48
  SPEAKER_00: We'll see you next time.