Episode 50
The 6 Words Most People Can't Define (And Why It's Costing Them)
Episode Description
Are you actually building wealth — or just earning a lot of money?
You can make $500,000, $750,000, even $1 million a year. And if you can't answer that question clearly, you can still feel like you're running in place.
In this episode of The Big Bo $how — The 6 Words Most People Can't Define (And Why It's Costing Them) — Jason breaks down the six words every high earner uses but very few truly understand. And how they connect into one system that can help determine whether your income actually turns into sustainable wealth.
In this episode, we cover:
✔ The six words high earners should be able to define in plain English
✔ Why your personal financial statements are the scorecard many high earners never learned to read
✔ The $500K vs. $500K example: how two similar incomes can create very different planning paths
✔ Capital allocation — why I believe it may be one of the most important wealth-building skills a high earner can develop
✔ Why generic financial advice can quietly become the wrong decision for your situation
✔ “Financial success with handcuffs” — the liquidity trap many successful professionals don’t talk about
✔ The Bo Know$ rule: The Mets Test
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SEGMENT 1 — The Six Words You Need to Define
Every great business knows its numbers. What it owns. What it owes. What's coming in. What goes out. And what's left to reinvest. You have personal financial statements too. Most people just never learned to read them. Assets are what you own. Liabilities are what you owe. Net worth is what's left. Income comes in, expenses go out, and cash flow is what's left. Net worth is not a flex. It's feedback. Cash flow is the engine that helps build the balance sheet.SEGMENT 2 — Income Is Not Wealth
Two households. Both make $500,000 a year. One spends $450,000. The other spends $350,000. That's $50K of annual oxygen vs $150K. Over 10 years before investment growth, that's $1 million difference in deployable capital. Same income, completely different life options. Income creates opportunity. Cash flow determines whether you capitalize on it.SEGMENT 3 — Capital Allocation: Where the Excess Goes Next
Earning the money is offense. Allocating it is how you win the game. Every dollar has to get a job — some attack debt, some buy future growth, some sit in cash so life doesn't force bad decisions. If you don't assign the job, your lifestyle usually will. And this is where seemingly smart financial decisions can quietly become bad ones — like the high earner who automatically defaults into Roth contributions because they heard tax-free growth is always better. Maybe. But maybe not. Good strategy is often contextual.SEGMENT 4 — Financial Success With Handcuffs
You can be worth millions on paper and still feel boxed in. Big home equity, big retirement accounts, big lifestyle — but not enough flexible capital. That is not financial freedom. That is financial success with handcuffs. You've built the thing. You just can't fully use it. Wealth without liquidity is a balance sheet you can't fully use.BO KNOW$ — The Mets Test
The Mets have one of the highest payrolls in baseball. And yet somehow they still manage to disappoint on a regular basis. Why? Because money alone does not build winners. Allocation does. The teams that win World Series consistently — the Dodgers, the Braves — aren't always the ones with the biggest payroll. They're the ones who allocate smartest. Right player, right role, right time, no wasted dollars. Same thing in personal finance. So here's your Bo Know$ rule: the Mets Test. Before your next financial decision, ask — am I just spending the payroll, or am I actually building a championship team?Wrap-Up
Six words. Asset. Liability. Income. Expense. Cash flow. Not just the definitions — a system. Your balance sheet tells you where you stand. Your cash flow tells you what you have to work with. Your capital allocation decisions determine whether any of it compounds into lasting wealth. All three have to work together.If you'd like a second set of eyes on yours, that's what we do at Julius Wealth Advisors. Integrity, Knowledge, Passion. Visit JuliusWealthAdvisors.com. Let's have a real conversation.
About Jason
Jason Blumstein, CFA, is the founder and CEO of Julius Wealth Advisors, an independent boutique RIA serving clients nationwide from Englewood Cliffs, New Jersey. His passion for investing began at just 10 years old, when his grandfather Julius turned off the cartoons, turned on CNBC, and began teaching him about stocks, discipline, and the values that build a meaningful life.Shaped by early family financial hardship and inspired by Julius’s integrity and generosity, Jason built a career by gaining experience with PwC, Morgan Stanley, and J.P. Morgan. With a mission of offering transparent, education-forward planning rooted in Integrity, Knowledge, and Passion, Jason founded Julius Wealth Advisors in 2021. The firm operates in a fiduciary, client-aligned model built around long-term partnership.
Building Wealth Is By Choice, Not Chance
Today, Jason partners with High Earners, Not Wealthy Yet (HENWY) families ages 35–50, helping them build long-term, sustainable wealth through disciplined planning, deeply personal guidance, and analytical rigor he gained as a CFA® charterholder. He is known for his boutique, high-touch service, and for the educational clarity he brings to every conversation through The Big Bo $how podcast and Wealth of Knowledge blog. Outside the office, Jason is a proud husband and father of two. He loves all sports, working out, watching the NFL (he has a complicated relationship with the Dolphins), rooting for the Mets, and staying active—a continuation of his college football days. To learn more about Jason, connect with him on LinkedIn.
Disclosures:This piece contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should be construed as a solicitation to buy or sell any security or as an offer to provide investment advice. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. Past performance does not guarantee any future results. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. For additional information about Julius Wealth Advisors, including its services and fees, contact us or visit adviserinfo.sec.gov.