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Building Wealth? Be Like Eminem in 8-Mile

Building Wealth? Be Like Eminem in 8-Mile

April 19, 2024

When I think about what it takes for a young family to accumulate wealth and achieve a funded retirement, I think of the singer Eminem and his semi-autobiographical movie 8-Mile.

What???

Some of you may read that and think that I’ve lost my mind. I get it. He’s unapologetically raw. He curses. His lyrics offend people. Please, let’s look past all that for a moment and look a little closer.

Scroll present day news feeds and you’ll read articles about how hard everything is and how the current generation of young families will never have it as good as the previous generation.

Stop. Those are gross generalizations being applied to a set demographic. You have the power to choose to reject those generalizations and live a life where they do not apply to you.

Ignore the keyboard warriors and their generalizations and instead be like Eminem’s character B-Rabbit.

He exercised his qualities of perseverance and determination. B-Rabbit came from modest beginnings. He didn’t have professional coaches. He didn’t have a wealthy sponsor. He didn’t have an ‘in’ with the recording industry. He leaned into his skills and refused to quit.

He bet on himself. When faced with a choice to partner-up with his buddy or continue to pursue his dream he remained faithful to his dream. He chose the more difficult route over the more comfortable option. He controlled what he could control, which was how he used his time. To get where he wanted to go, he knew that he had to do more each day so he could become more in the future.

What does all of this have to do with personal finance? Everything.

For young families to achieve a funded retirement, they will first need to master Cash Flow Management. Cash Flow Management is the dominant determinant of long-term financial success, or failure. This is a foundational principal for which all other principles stack on top. Without long-term savings, none of the rest of the financial advice out there will help you.

1. Bet on yourself. Systematically save 20% of your gross earnings into retirement plans and/or into other growth assets during your accumulation years.

In addition, invest in you and seek to make yourself the most valuable person at your company. Invest in your education by reading books that make you better, listening to career relevant podcasts and by paying to attend learning events. Don’t rely on your manager’s training budget. Invest in making yourself better and over time you will earn that investment back and more. Investing in yourself helps you in two ways: a) protects you during layoffs and b) makes you more promotable.

2. Exercise perseverance and determination by consistently focusing on controlling what you can control. You cannot control the rate of return of the stock market during those specific years you are investing. You cannot control mortgage rates. You cannot control the rate of inflation.

You can control spending. You can control savings rates. It’s easy to get sidetracked by that new car or that vacation that might be a bit too big for your budget. In those moments, stay true to your vision of a funded retirement and your long-term wealth building goals.

Here is my personal plea to you. Do not listen to these articles saying that the future is bleak. Get started today by committing to achieving mastery of cash flow management either on your own, or hire a financial advisor to help you get and stay on track.

Either way, it must get done or else you will be resigning yourself to the life the keyboard warriors are prognosticating.

If you are a high-earner not rich yet (HENRY) family with young kids and are feeling uncertain about your current plan or where to go next, then I invite you to share 30 minutes with me on a ZOOM call for a no cost and no obligation personal financial assessment.

This is too important. Click HERE right now to request a meeting.