Video Posted: January 2, 2025
If you could visualize this formula, it’s only successful if you wrap it with a wealth mindset. Each financial decision is not isolated by itself; it has to be looked at in relation to something else in your overall plan. Most people don’t see the big picture, and that’s what I want to talk about today.
This is John Smallwood, and I’ve been thinking about wealth recently, especially how we perceive wealth and how we often fail to see it clearly. Over my 35-year career, I’ve had countless conversations where people say, “When I have money, I’ll come meet with you.” But here’s the thing—people often think they’ll have more money in the future, and when they finally get there, it’s never enough. I keep pushing, “I’ll do it, I’ll do it, I’ll do it,” but there’s a mindset problem. When you think about money in a way that feels like you don’t have any, no matter how much you have, you will always feel like you don’t have enough.
I started thinking about how people get impatient for their returns and how they seek instant gratification. We’ve grown up in a world where putting a dollar in a Coke machine means getting a Coke right away. That immediate reward can sometimes create conflict, letdowns, and misaligned expectations, leading to disappointment when reality doesn’t match those expectations.
Aligning Income, Savings, and Lifestyle for Success
This led me to think about the formula for a successful wealth plan. If you’re looking at this on YouTube, you’ll see it on the screen. If you’re just listening, let me explain: The formula starts with your income, your savings rate, and your lifestyle. These three things are the foundation. But most of the time, people’s income, savings, and lifestyle are out of balance.
If you think about it like fitness and nutrition, it’s like the macros people talk about in fitness: protein, fats, and carbs. If these things are off, people struggle to get results and can’t figure out why. When you optimize your income, savings, and lifestyle, it’s like optimizing those macros—you’ll start seeing great results.
I’ve been on a fitness journey myself for the past 35 to 40 years. But it wasn’t until 15 months ago when I started measuring my protein intake that I realized I should be eating 170 to 190 grams of lean, quality protein per day. I was only eating about 40–50 grams, and my diet was a mix of intermittent fasting and binge eating. The results were off, and I couldn’t figure out why. Once I got my nutrition right, I started seeing better results.
Mastering Tax Balance and Long-Term Wealth Strategies
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