Magic Johnson is worth billions and says “if you want to build wealth, you can’t just think about your own pockets.’

Many people aspire to build long-term wealth. A higher net worth will give you more options and make it easier to keep up with the cost of living. However, you can’t be in it for yourself. While it’s good to strive to build up your bank account and portfolio, you should also think of the other people you can help with your extra money.

That advice comes from Magic Johnson. He said in a 2008 interview that it’s easier to build wealth if you think about others instead of only focusing on filling your own pockets. This insight is profound and can give people a new perspective on how they manage money and what goals they set.

Have a Motivation Beyond Yourself

While it’s good to think about filling your own pockets, making money for someone else or a valuable cause can inspire you to take more action. It’s similar to how people become different the moment they become parents. New parents finally have someone in their life that is more important than themselves. Parenthood can create a domino effect that causes people to give up their vices, get more efficient with money management, and move toward their long-term goals.

Thinking about your family and providing for them instead of just filling your pockets will make it easier to grind during the more challenging days. Single individuals can benefit from thinking about the type of families they want to lead and act accordingly.

You can also use this thinking process for charitable causes. Making more money gives you the flexibility to donate to causes that matter to you. Not everyone is fueled by charitable giving, but it can serve as an extra incentive to boost your earnings.

Keep That Motivation Front and Center

Life can throw plenty of distractions and curveballs at us. It’s important to remember why you work hard and who will benefit from your success. Writing in a journal each day and having visual reminders (i.e., your desktop’s home screen can be a good opportunity) will make it easier to stay focused on long-term goals.

Some days are easier than others, but thinking about the people and organizations you want to help will make it easier to reach your financial goals. 

Ask Yourself If Each Expense Matters

We have to buy essential products and services, but once you check those items off the list, you’ll end up spending money on discretionary items. It’s good to spend your hard-earned money on things that you enjoy, but overspending money can derail your efforts to create meaningful changes with your funds. 

A  good way to test if a discretionary item is worth purchasing is by waiting 30 days until you buy it. If you forget about the discretionary item after 30 days, you save yourself money. However, if this purchase continues to show up in your thoughts after 30 days, it makes more sense to buy the item. Waiting this long can free you from impulsive spending and allow you to make more meaningful purchases with your money.

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