Wealth|Knowledge and Action… Creates Wealth
Jun
01
Filed Under (Finance) by wealth
Tom Wheelwright asked:
Your Wealth?
I have been speaking at several seminars lately on the topic of building permanent wealth. One of my favorite things about speaking at seminars is talking with the participants one-on-one. In just the past few weeks I’ve met hundreds of people with diverse backgrounds, various educations and different professions. All of them wanted to know how to build permanent wealth. And much like those of you I heard from last week, they wanted to know exactly what they needed to do.
Whenever someone asks me what to do to build permanent wealth, I answer that question with a question: Where is your wealth? Where is your wealth today and where is your wealth going?
In other words, where are you today in terms of how much you own versus how much you owe? And, where do you want your wealth to be?
Take a few seconds to think about your answer.
- The Answers -
It is very rare that any one answers my question with absolute certainty. Here are the answers I typically receive:
Most popular: “I have no idea”
Close second: “Oh, somewhere around….ummmmm….about…$X and I want it to be X times that”
Funniest: “I keep wondering the same thing! Where is my wealth? I work and work and work, make great money, but I have nothing to show for it! Where is it going?”
At first, it’s easy to conclude that these people must just not care about their wealth because they have no idea where they are today or where they want to be with their wealth. But the people I spoke with recently are people attending seminars specifically to learn more about building wealth, so obviously they care. So then why don’t they know the answer to this question?
I’ve concluded that most people don’t know the answer because they don’t know how to get started on building their wealth. I’m learning that this is a common place for people to be.
The traditional route to getting started has been to meet with a financial planner and find out when you can retire based on a certain amount of savings each month.
My approach to wealth strategies is the same approach I use when I create tax strategies. In fact, the two are intertwined. A successful tax strategy will produce tax savings and then leverage those tax savings by integrating them into a wealth strategy. This is a great way to supercharge a wealth strategy! But my approach with both always begins with (1) Where do you want to be? and (2) Where are you today? If this sounds similar to traditional financial planning, it’s not.
Simple But Not Easy
This concept of starting with where you want to be and where you are today is a simple concept to understand. But, it’s not always easy to do.
It’s very similar to a fitness program. When I started my fitness program, I needed to establish where I was when I started and where I wanted to be. This was a simple concept for me to understand. But, when I went to execute it, I found it wasn’t so easy. I knew what my weight was and where I wanted it to be, but what else was there? At the time I started, I didn’t know what else there was, but since then, I’ve learned many other ways to measure these two points in time - body fat, key body measurements, specific goals, like completing a triathlon in a certain amount of time by a certain age. Now I can create a list that goes on and on but that wasn’t’ the case when I first started.
When determining where you are with your wealth, there are financial calculations that need to be done, soul searching to be done to determine what you really want and, of course, the time to actually sit down and do it! All of these are not necessarily easy to do. But the good news is that they are not impossible to do, it just requires time (and it doesn’t have to be a huge amount of time), effort and focus.
So, Where Is Your Wealth?
DEMARCUS
Your Wealth?
I have been speaking at several seminars lately on the topic of building permanent wealth. One of my favorite things about speaking at seminars is talking with the participants one-on-one. In just the past few weeks I’ve met hundreds of people with diverse backgrounds, various educations and different professions. All of them wanted to know how to build permanent wealth. And much like those of you I heard from last week, they wanted to know exactly what they needed to do.
Whenever someone asks me what to do to build permanent wealth, I answer that question with a question: Where is your wealth? Where is your wealth today and where is your wealth going?
In other words, where are you today in terms of how much you own versus how much you owe? And, where do you want your wealth to be?
Take a few seconds to think about your answer.
- The Answers -
It is very rare that any one answers my question with absolute certainty. Here are the answers I typically receive:
Most popular: “I have no idea”
Close second: “Oh, somewhere around….ummmmm….about…$X and I want it to be X times that”
Funniest: “I keep wondering the same thing! Where is my wealth? I work and work and work, make great money, but I have nothing to show for it! Where is it going?”
At first, it’s easy to conclude that these people must just not care about their wealth because they have no idea where they are today or where they want to be with their wealth. But the people I spoke with recently are people attending seminars specifically to learn more about building wealth, so obviously they care. So then why don’t they know the answer to this question?
I’ve concluded that most people don’t know the answer because they don’t know how to get started on building their wealth. I’m learning that this is a common place for people to be.
The traditional route to getting started has been to meet with a financial planner and find out when you can retire based on a certain amount of savings each month.
My approach to wealth strategies is the same approach I use when I create tax strategies. In fact, the two are intertwined. A successful tax strategy will produce tax savings and then leverage those tax savings by integrating them into a wealth strategy. This is a great way to supercharge a wealth strategy! But my approach with both always begins with (1) Where do you want to be? and (2) Where are you today? If this sounds similar to traditional financial planning, it’s not.
Simple But Not Easy
This concept of starting with where you want to be and where you are today is a simple concept to understand. But, it’s not always easy to do.
It’s very similar to a fitness program. When I started my fitness program, I needed to establish where I was when I started and where I wanted to be. This was a simple concept for me to understand. But, when I went to execute it, I found it wasn’t so easy. I knew what my weight was and where I wanted it to be, but what else was there? At the time I started, I didn’t know what else there was, but since then, I’ve learned many other ways to measure these two points in time - body fat, key body measurements, specific goals, like completing a triathlon in a certain amount of time by a certain age. Now I can create a list that goes on and on but that wasn’t’ the case when I first started.
When determining where you are with your wealth, there are financial calculations that need to be done, soul searching to be done to determine what you really want and, of course, the time to actually sit down and do it! All of these are not necessarily easy to do. But the good news is that they are not impossible to do, it just requires time (and it doesn’t have to be a huge amount of time), effort and focus.
So, Where Is Your Wealth?
DEMARCUS
May
06
Filed Under (Finance) by wealth
Tom Wheelwright asked:
- The Big Secret to Creating Wealth -
The big secret really isn’t a secret. Many of you will read this big secret and think to yourself, “Of course! I know that! Tell me something I don’t know!”
The big secret to creating wealth is…take action now!
If you did something every day to positively impact your wealth, how much wealth could you build in the next 30 days? In the next 60 days? In the next year?
And while many people know this big secret, very few actually follow it.
Only 83 Days Left
There are only 83 days left in 2008 (at the time this article was written). What will you do in these 83 days to build permanent wealth?
Does This Look Like Your Plan to Create Wealth?
When I meet with a new wealth coaching client, this is what their plan to create wealth typically looks like:
They spend most of their time at work. They go to work in hopes they can “get ahead.” They spend 8, 10, or even 12 hours each day working hard for money. They spent anywhere from 12 to 20 years or more in school preparing for their profession.
And yet, the bottom line is they are not ahead at all. They may have a few dollars set aside for a rainy day, and have an investment here and there, but they aren’t creating any lasting wealth or making significant strides towards their dream retirement…even though they are working hard enough that they deserve to create some wealth!
My job is to put them on the right path to creating wealth - one that creates lasting wealth - and I am able to do that because they have taken action. And with the right path to follow, they will continue to take action.
Most people are pleased to learn that taking action doesn’t always mean working hard for their money. Wealth creation is not simply a matter of hard work. It’s a matter of knowing how to make money. That’s why a major part of wealth coaching includes increasing knowledge about how to make money. Are You Ready to Take Action?
- Are You A Statistic? -
While many people know this big secret, very few actually follow it.
I have been speaking at several seminars lately. The people I’m presenting to are people who have chosen to be there and have often paid hundreds, if not thousands, of dollars to be there. Yet, the statistics are shocking about who actually takes action and does something to change their financial position!
Less than 5% of people who attend educational seminars actually take action.
It’s not just seminar related, less than 8% of those who set new years resolutions actually achieve them.
Will you fall into the minority that takes action now or will you fall into the majority and put it on the back burner?
Simple But Not Easy!
The concepts of creating wealth can be simple to understand - I’ve been working at it for years to take complex strategies and concepts and break them into understandable and manageable pieces. But actually taking the action to bring those concepts into your world is not always easy.
Earlier I challenged you to take action with the 83 days left in 2008 and come up with your action plan to build wealth. This is an example of a simple concept to understand, but not necessarily easy to do.
Did you come up with an action plan? If you did, congratulations, you are in the small percentage of people who jump in and take action.
If you didn’t come up with an action plan, think about what it was that kept you from doing it. Was it:
- Had no time
- Too busy with family
- Dealing with a big deadline at work
- Simply forgot
- Didn’t read that part of the email
- Tried but got distracted
- Tried but didn’t know where to start
When I first started my fitness program, I wasn’t able to come up with my action plan on my own. I knew I wanted to increase my fitness level, and I had an idea about what my fitness goals were, but I just didn’t know how to go about putting a plan together to get me there. That’s where my fitness coach came in - I went to the expert to show me the way and now it’s more than a year later and I’m still amazed at how far I have come. My results are so much better than if I tried to do it on my own. I didn’t even think some of my results were possible when I first started!
Are You Ready to Take Action?
COLEMAN
- The Big Secret to Creating Wealth -
The big secret really isn’t a secret. Many of you will read this big secret and think to yourself, “Of course! I know that! Tell me something I don’t know!”
The big secret to creating wealth is…take action now!
If you did something every day to positively impact your wealth, how much wealth could you build in the next 30 days? In the next 60 days? In the next year?
And while many people know this big secret, very few actually follow it.
Only 83 Days Left
There are only 83 days left in 2008 (at the time this article was written). What will you do in these 83 days to build permanent wealth?
Does This Look Like Your Plan to Create Wealth?
When I meet with a new wealth coaching client, this is what their plan to create wealth typically looks like:
They spend most of their time at work. They go to work in hopes they can “get ahead.” They spend 8, 10, or even 12 hours each day working hard for money. They spent anywhere from 12 to 20 years or more in school preparing for their profession.
And yet, the bottom line is they are not ahead at all. They may have a few dollars set aside for a rainy day, and have an investment here and there, but they aren’t creating any lasting wealth or making significant strides towards their dream retirement…even though they are working hard enough that they deserve to create some wealth!
My job is to put them on the right path to creating wealth - one that creates lasting wealth - and I am able to do that because they have taken action. And with the right path to follow, they will continue to take action.
Most people are pleased to learn that taking action doesn’t always mean working hard for their money. Wealth creation is not simply a matter of hard work. It’s a matter of knowing how to make money. That’s why a major part of wealth coaching includes increasing knowledge about how to make money. Are You Ready to Take Action?
- Are You A Statistic? -
While many people know this big secret, very few actually follow it.
I have been speaking at several seminars lately. The people I’m presenting to are people who have chosen to be there and have often paid hundreds, if not thousands, of dollars to be there. Yet, the statistics are shocking about who actually takes action and does something to change their financial position!
Less than 5% of people who attend educational seminars actually take action.
It’s not just seminar related, less than 8% of those who set new years resolutions actually achieve them.
Will you fall into the minority that takes action now or will you fall into the majority and put it on the back burner?
Simple But Not Easy!
The concepts of creating wealth can be simple to understand - I’ve been working at it for years to take complex strategies and concepts and break them into understandable and manageable pieces. But actually taking the action to bring those concepts into your world is not always easy.
Earlier I challenged you to take action with the 83 days left in 2008 and come up with your action plan to build wealth. This is an example of a simple concept to understand, but not necessarily easy to do.
Did you come up with an action plan? If you did, congratulations, you are in the small percentage of people who jump in and take action.
If you didn’t come up with an action plan, think about what it was that kept you from doing it. Was it:
- Had no time
- Too busy with family
- Dealing with a big deadline at work
- Simply forgot
- Didn’t read that part of the email
- Tried but got distracted
- Tried but didn’t know where to start
When I first started my fitness program, I wasn’t able to come up with my action plan on my own. I knew I wanted to increase my fitness level, and I had an idea about what my fitness goals were, but I just didn’t know how to go about putting a plan together to get me there. That’s where my fitness coach came in - I went to the expert to show me the way and now it’s more than a year later and I’m still amazed at how far I have come. My results are so much better than if I tried to do it on my own. I didn’t even think some of my results were possible when I first started!
Are You Ready to Take Action?
COLEMAN
Mar
16
Filed Under (Finance) by wealth
Steven Miller asked:
Wealth creation is probably a new term for most people. It is hard enough to create something useful for ourselves. Yet, do people really think that creating wealth is possible? As we can see, in today’s educational system it is rare for universities to teach wealth creation even in business schools. Thus, it might as well be an abstract idea as world peace.
However, inspirational giants and self-made millionaires like Robert Kiyosaki, Tony Robbins and Jamie McIntyre are people who have perfected wealth creation skills. As the term implies, skill is an action to produce tangible results. One cannot say that he has the skill to do something if he cannot demonstrate it. Thus, developing wealth creation skills is not only a tangible part of reality, but also something that people can develop and enhance. Following a path towards developing wealth creation skills will definitely help you achieve financial freedom.
Do not Sell Yourself Short
The first step in developing your wealth creation skills is acknowledging your value. Having the self-confidence to move forward with your strengths will allow you to be valuable to other people. When this happens, do not undervalue yourself. When you undervalue yourself you project an image where people can manipulate you. Feeling that you do not get equal value for your work is the biggest individual letdown. In order to develop your wealth creation skills, you must design your launch pad to success by feeling good with your work.
By pushing yourself to live up to your perceived value, you also give yourself the incentive to become a better person and raise your value even higher. Then you can become a critical creator of your wealth.
Millionaires are not cheap
Most successful people will tell you that success comes with a price. Sometimes the price tag for success is something that we can afford. However, we still don’t have the will to spend it anyway. Self-made millionaire’s spends on things that they can’t afford because they know that they can be better off with it. Remember that the world millionaire and cheap will not come together. If you want to be a millionaire someday, start getting rid of the word cheap.
Remember that every benefit always comes with a cost. Go for things that you feel will benefit you the most and be daring enough to supply the necessary effort for it.
Finding your craft - then get paid for it
People find confidence if they do what they really love doing. However, people tend to leave the things that they love in order to work hard for money. When this happens, one finds it harder to become confident. They end up forgetting their dreams while they fall into pitch black.
To find enthusiasm, people should start asking a different question instead. Why can’t I do the things that I love to do and get paid for it? Developing sound wealth creation skills involves putting passion in your work. Invest in yourself first and you will see the dividends pay off.
There is Wealth
Finally developing wealth creation skills is acknowledging that wealth abounds. Traditional education has been talking about a world of scarcity. As defined, economics exists because we need to find ways to distribute scarce resources. How about the other way around? Jamie McIntyre said that if we divide the world’s wealth to all the six billion people in the planet, we would get $3,000,000 each. It is our job to get our equal share of world wealth.
True wealth creation knows that the world is abundant. This way, we can develop ourselves to look at different trials and come up with different opportunities. Knowing that there is wealth will put your wealth creation skills to good use.
BART
Wealth creation is probably a new term for most people. It is hard enough to create something useful for ourselves. Yet, do people really think that creating wealth is possible? As we can see, in today’s educational system it is rare for universities to teach wealth creation even in business schools. Thus, it might as well be an abstract idea as world peace.
However, inspirational giants and self-made millionaires like Robert Kiyosaki, Tony Robbins and Jamie McIntyre are people who have perfected wealth creation skills. As the term implies, skill is an action to produce tangible results. One cannot say that he has the skill to do something if he cannot demonstrate it. Thus, developing wealth creation skills is not only a tangible part of reality, but also something that people can develop and enhance. Following a path towards developing wealth creation skills will definitely help you achieve financial freedom.
Do not Sell Yourself Short
The first step in developing your wealth creation skills is acknowledging your value. Having the self-confidence to move forward with your strengths will allow you to be valuable to other people. When this happens, do not undervalue yourself. When you undervalue yourself you project an image where people can manipulate you. Feeling that you do not get equal value for your work is the biggest individual letdown. In order to develop your wealth creation skills, you must design your launch pad to success by feeling good with your work.
By pushing yourself to live up to your perceived value, you also give yourself the incentive to become a better person and raise your value even higher. Then you can become a critical creator of your wealth.
Millionaires are not cheap
Most successful people will tell you that success comes with a price. Sometimes the price tag for success is something that we can afford. However, we still don’t have the will to spend it anyway. Self-made millionaire’s spends on things that they can’t afford because they know that they can be better off with it. Remember that the world millionaire and cheap will not come together. If you want to be a millionaire someday, start getting rid of the word cheap.
Remember that every benefit always comes with a cost. Go for things that you feel will benefit you the most and be daring enough to supply the necessary effort for it.
Finding your craft - then get paid for it
People find confidence if they do what they really love doing. However, people tend to leave the things that they love in order to work hard for money. When this happens, one finds it harder to become confident. They end up forgetting their dreams while they fall into pitch black.
To find enthusiasm, people should start asking a different question instead. Why can’t I do the things that I love to do and get paid for it? Developing sound wealth creation skills involves putting passion in your work. Invest in yourself first and you will see the dividends pay off.
There is Wealth
Finally developing wealth creation skills is acknowledging that wealth abounds. Traditional education has been talking about a world of scarcity. As defined, economics exists because we need to find ways to distribute scarce resources. How about the other way around? Jamie McIntyre said that if we divide the world’s wealth to all the six billion people in the planet, we would get $3,000,000 each. It is our job to get our equal share of world wealth.
True wealth creation knows that the world is abundant. This way, we can develop ourselves to look at different trials and come up with different opportunities. Knowing that there is wealth will put your wealth creation skills to good use.
BART
Feb
02
Filed Under (Finance) by wealth
Tom Justice asked:
ers When asked to name an effective way of obtaining wealth, a common answer is: “Invest”. What is the problem with this answer? Well, the majority of respondents have very little or no money in their savings account. I see the beginning of wealth building in a different light. A saying that almost everyone knows but nearly no one applies is: “A penny saved is a penny earned”. In today’s culture it is definitely much easier to spend money than it is to save it. The average American is exposed to 247 advertisements in one day! Less than 5% of Americans have at least $3000 in savings and no debt. It is no wonder that most consumers struggle with saving money or grasping the concept of building wealth. We are mentally flogged with television and radio commercials, newspaper and magazine ads, billboards, signs, posters and even conversations. Whatever the method, it all serves one main purpose - to take your money and make it theirs. Unveiling the Mystery So with all those statistics and all that advertising, how in the world is it possible to build wealth? Well consider yourself ahead of the game already. By reading this article you are opening your mind to ideas and concepts which could help you to begin the process which is more than can be said for most people out there. A house starts with a single brick and the same is true with wealth building. You have to start with what you can and keep adding to it. Why not jump in to stocks, mutual funds or other investments right off the bat? Life will continue to happen whether you plan for it or not. So plan for it. You must start with a lump sum of money in your savings account which has been referred to as an “emergency savings”. A good figure for this is $1000. You MUST pay your savings first, before anything else. If you do not, your savings will not grow (or it may not happen at all). This extra money will act as a soft landing for any financial falls that can and will occur while you pay down other debts that are road blocking your way to building wealth. You must realize though; this money is first priority but can not be touched - ONLY for emergencies. By following these 2 steps: 1) Stocking up your savings with $1,000 and then 2) Eliminating extra debts (with great fervor), you will prepare yourself for a much easier road to building wealth. Making it Happen You have to take action now or this whole savings thing will not happen. First, get a savings account. If you have one, find out what the interest rate is. Many have something like 0.25% to 1% (WHOOPEE!). Remember that you are not trying to make all your money in interest right now but since the money is going to sit you may as well look around. It is possible to land up to a 3-5% interest rate. Another option is a money market account to get a good rate although restrictions sometimes apply for things like early withdrawal fees and keeping a minimum amount in the account at all times. Secondly, as I stated earlier, take your savings off the top on payday. You have to make a painful change as well though. You may have to sacrifice some things to get that initial $1,000. This could mean no eating out or temporarily cutting out an expensive hobby. You also might want to try changing your phone company or downgrading your cable package. I **** this next idea but it is for a good cause: Drop your credit card payments below the minimum (JUST FOR NOW). Anyway, you get the idea. Cut some here - cut some there. Now, take all the figures you cut and add them together. This is what you will put in to your savings account until you reach $1,000. See, when the average person feels like they are getting ahead or even staying even, a setback occurs and sends everything spiraling downward. This is the hard part of building wealth and it is just the beginning (the first brick). However, without this extra money in savings you will tread water until you eventually drown, so stop thinking about it and start acting on it today. The next step is paying off your debts quickly. An article which discusses this in detail is “Beating Debt with a Stick” and can be found at http://www.cleancreditonline.com/beating_debt.html.
ARMAND
ers When asked to name an effective way of obtaining wealth, a common answer is: “Invest”. What is the problem with this answer? Well, the majority of respondents have very little or no money in their savings account. I see the beginning of wealth building in a different light. A saying that almost everyone knows but nearly no one applies is: “A penny saved is a penny earned”. In today’s culture it is definitely much easier to spend money than it is to save it. The average American is exposed to 247 advertisements in one day! Less than 5% of Americans have at least $3000 in savings and no debt. It is no wonder that most consumers struggle with saving money or grasping the concept of building wealth. We are mentally flogged with television and radio commercials, newspaper and magazine ads, billboards, signs, posters and even conversations. Whatever the method, it all serves one main purpose - to take your money and make it theirs. Unveiling the Mystery So with all those statistics and all that advertising, how in the world is it possible to build wealth? Well consider yourself ahead of the game already. By reading this article you are opening your mind to ideas and concepts which could help you to begin the process which is more than can be said for most people out there. A house starts with a single brick and the same is true with wealth building. You have to start with what you can and keep adding to it. Why not jump in to stocks, mutual funds or other investments right off the bat? Life will continue to happen whether you plan for it or not. So plan for it. You must start with a lump sum of money in your savings account which has been referred to as an “emergency savings”. A good figure for this is $1000. You MUST pay your savings first, before anything else. If you do not, your savings will not grow (or it may not happen at all). This extra money will act as a soft landing for any financial falls that can and will occur while you pay down other debts that are road blocking your way to building wealth. You must realize though; this money is first priority but can not be touched - ONLY for emergencies. By following these 2 steps: 1) Stocking up your savings with $1,000 and then 2) Eliminating extra debts (with great fervor), you will prepare yourself for a much easier road to building wealth. Making it Happen You have to take action now or this whole savings thing will not happen. First, get a savings account. If you have one, find out what the interest rate is. Many have something like 0.25% to 1% (WHOOPEE!). Remember that you are not trying to make all your money in interest right now but since the money is going to sit you may as well look around. It is possible to land up to a 3-5% interest rate. Another option is a money market account to get a good rate although restrictions sometimes apply for things like early withdrawal fees and keeping a minimum amount in the account at all times. Secondly, as I stated earlier, take your savings off the top on payday. You have to make a painful change as well though. You may have to sacrifice some things to get that initial $1,000. This could mean no eating out or temporarily cutting out an expensive hobby. You also might want to try changing your phone company or downgrading your cable package. I **** this next idea but it is for a good cause: Drop your credit card payments below the minimum (JUST FOR NOW). Anyway, you get the idea. Cut some here - cut some there. Now, take all the figures you cut and add them together. This is what you will put in to your savings account until you reach $1,000. See, when the average person feels like they are getting ahead or even staying even, a setback occurs and sends everything spiraling downward. This is the hard part of building wealth and it is just the beginning (the first brick). However, without this extra money in savings you will tread water until you eventually drown, so stop thinking about it and start acting on it today. The next step is paying off your debts quickly. An article which discusses this in detail is “Beating Debt with a Stick” and can be found at http://www.cleancreditonline.com/beating_debt.html.
ARMAND
Jan
23
Filed Under (Finance) by wealth
Loral Langemeier asked:
Wealth. Does that sound like a foreign word to you? If you’re saddled with loads of consumer debt the way so many Americans are, it is probably a very unfamiliar word. Commercial and consumer debts are the greatest barriers to wealth. And when you’re suffocated by thousands of dollars of debt, it may seem impossible to get out.
There’s good news! It’s not impossible to eliminate your debt and move toward wealth. Most people and small businesses simply don’t have a system for paying off their debt, and as a result they perpetuate bad habits and remain stuck in it. By using the proper debt management system, you can get out of debt quicker than you probably imagined with minimal change to your existing lifestyle.
To top it off, there is a system you can use that will allow you to simultaneously create and feed the Wealth Cycle, a cycle of wealth millionaires use to consistently and exponentially build their wealth. In other words, you can simultaneously become wealthy and repay your debt.
Skeptical? You bet. But, you’ll be surprised at how easy this is.
So what’s the best way to abolish consumer debt? Many financial advisors will tell you to scrimp, save and cut back on absolutely everything that makes life fun. They’ll tell you to create a very tight budget and then pay off your debt before you can even think about making investments of any type. Sounds a lot like a diet, one that will cause you to starve yourself and your children, depriving them of wealth.
So what does work?
To tackle consumer debt, Loral’s five-step debt strategy includes the following steps (explained in considerable detail in her book, The Millionaire Maker):
Create a debt elimination box Calculate a factoring number Make a priority payoff box Use a “jump start allocation” Make your debt payments
By using this system, your debt payments start to build as you pay of your creditors, all of whom have been listed in order of priority. Your capacity to pay off your debt accelerates quicker and it does require you to shave down unnecessary expenses, but not cut out everything you love. In short, it’s realistic - and mighty effective. You simply have to commit to it.
But wait, there’s more to it!
Earlier I mentioned that you can pay off your debt and at the same time actively build your wealth. Remember that Wealth Cycle mentioned earlier? This is where it comes in.
The Wealth Cycle™ used by millionaires consists of 12 steps:
Gap Analysis Financial Baseline Freedom Day Debt Management Entities Cash Machine Wealth Account Forecasting Assets Leadership Teamwork Conditioning
It’s okay if you don’t know what each step means right now. The main thing to understand is that the key to success in using the Wealth Cycle™ is knowing which steps to take, and in what order.
Everyone’s financial situation will require its own order of sequencing. A wealth mentor can help you determine what’s right for you. For some people, the first step is to develop the proper legal entities for their business and investments so as to maximize tax strategies. For others it may mean first reallocating assets so you can bring in increased monthly income that enables you to start investing. This will in turn bring in passive income which will allow you to pay off your debt quicker.
Here’s an example of when entity structuring might be used first:
Let’s say you have a graphic design business but it’s not incorporated. This means your debt includes a lot of expenses - cell phone, office supplies, postage, etc - that you paid for out of your personal account. If you make your design business an entity, let’s say a “Subchapter S Corporation”, then the portion of your debt that includes those items can now be transferred over as business expenses. Now you can write off that portion of your debt against your income, giving you more money at the end of the year!
The interesting thing about the Wealth Cycle is, as stated above, that you only focus on debt management after you develop a Cash Machine, the proper Entities, and engage in forecasting.
Building wealth from a position of great debt takes courage, discipline, and positive energy. I realize this may seem a difficult scenario from which to create wealth, but my hundreds of successful clients prove that getting out of debt and building wealth is very doable. What it takes is a commitment to gaining awareness of your psychology, your finances, and a willingness to let go of old habits that no longer serve you.
CYRIL
Wealth. Does that sound like a foreign word to you? If you’re saddled with loads of consumer debt the way so many Americans are, it is probably a very unfamiliar word. Commercial and consumer debts are the greatest barriers to wealth. And when you’re suffocated by thousands of dollars of debt, it may seem impossible to get out.
There’s good news! It’s not impossible to eliminate your debt and move toward wealth. Most people and small businesses simply don’t have a system for paying off their debt, and as a result they perpetuate bad habits and remain stuck in it. By using the proper debt management system, you can get out of debt quicker than you probably imagined with minimal change to your existing lifestyle.
To top it off, there is a system you can use that will allow you to simultaneously create and feed the Wealth Cycle, a cycle of wealth millionaires use to consistently and exponentially build their wealth. In other words, you can simultaneously become wealthy and repay your debt.
Skeptical? You bet. But, you’ll be surprised at how easy this is.
So what’s the best way to abolish consumer debt? Many financial advisors will tell you to scrimp, save and cut back on absolutely everything that makes life fun. They’ll tell you to create a very tight budget and then pay off your debt before you can even think about making investments of any type. Sounds a lot like a diet, one that will cause you to starve yourself and your children, depriving them of wealth.
So what does work?
To tackle consumer debt, Loral’s five-step debt strategy includes the following steps (explained in considerable detail in her book, The Millionaire Maker):
Create a debt elimination box Calculate a factoring number Make a priority payoff box Use a “jump start allocation” Make your debt payments
By using this system, your debt payments start to build as you pay of your creditors, all of whom have been listed in order of priority. Your capacity to pay off your debt accelerates quicker and it does require you to shave down unnecessary expenses, but not cut out everything you love. In short, it’s realistic - and mighty effective. You simply have to commit to it.
But wait, there’s more to it!
Earlier I mentioned that you can pay off your debt and at the same time actively build your wealth. Remember that Wealth Cycle mentioned earlier? This is where it comes in.
The Wealth Cycle™ used by millionaires consists of 12 steps:
Gap Analysis Financial Baseline Freedom Day Debt Management Entities Cash Machine Wealth Account Forecasting Assets Leadership Teamwork Conditioning
It’s okay if you don’t know what each step means right now. The main thing to understand is that the key to success in using the Wealth Cycle™ is knowing which steps to take, and in what order.
Everyone’s financial situation will require its own order of sequencing. A wealth mentor can help you determine what’s right for you. For some people, the first step is to develop the proper legal entities for their business and investments so as to maximize tax strategies. For others it may mean first reallocating assets so you can bring in increased monthly income that enables you to start investing. This will in turn bring in passive income which will allow you to pay off your debt quicker.
Here’s an example of when entity structuring might be used first:
Let’s say you have a graphic design business but it’s not incorporated. This means your debt includes a lot of expenses - cell phone, office supplies, postage, etc - that you paid for out of your personal account. If you make your design business an entity, let’s say a “Subchapter S Corporation”, then the portion of your debt that includes those items can now be transferred over as business expenses. Now you can write off that portion of your debt against your income, giving you more money at the end of the year!
The interesting thing about the Wealth Cycle is, as stated above, that you only focus on debt management after you develop a Cash Machine, the proper Entities, and engage in forecasting.
Building wealth from a position of great debt takes courage, discipline, and positive energy. I realize this may seem a difficult scenario from which to create wealth, but my hundreds of successful clients prove that getting out of debt and building wealth is very doable. What it takes is a commitment to gaining awareness of your psychology, your finances, and a willingness to let go of old habits that no longer serve you.
CYRIL
Dec
09
Filed Under (Finance) by wealth
Trish Davies asked:
Building wealth is all about having a system that implements fundamental steps that once you have learned can be applied to create wealth. These steps are crucial to achieving your Financial Freedom Day.
It is never too late to build a financial wall around you and your family that nothing can get through. This would be referred to as financial security. We call it your Financial Freedom Day! It is the day when you have enough assets that pay for all your expenses now and in the future. The quicker you identify your financial freedom day the better. It does not have to be 10, 15, 20 or even 30 years down the track. It is not unrealistic to have a Freedom Day of between 3-5 years. It is the day that you can travel with your family when and where you like with no restrictions, afford the home you want, put your children into the schools you desire and teach your children there are no limits.
Financial freedom is having an asset base which generates the income to not only meet your needs but to create a lifestyle that you dream of. You do not want to be relying on anyone for your financial freedom, the government, your employer, your partner, your husband, your family. Financial freedom changes your life!
So now you ask; how? How do I set a financial freedom day? How do I achieve fianancial freedom? Ask yourself At what age would you like to be financially free?
To achieve financial freedom you need a system. A proven, step-by-step, time tested system that will get you on the path to building wealth. This system
is called ‘Building Your Wealth Cycles’ comprising of 8 fundamental steps to building sustainable wealth. All entrepreneurs have a system to build wealth.
The 8 fundamental steps are as follows: -
1. Financial Conditioning
One of the first areas that must be looked at is your mindset with regards to money. Your mindset is a result of your financial conditioning, you must be aware of your conditioning and the impact it has on your potential to create wealth. You must be able to make the changes necessary to bring money and wealth into your life. We have been conditioned about our money beliefs from a very young age from people around us that loved us very much, like our parents, grand-parents, teachers, coaches, peer support leaders and other family and friends. They only know and understand what they have been taught about money from the family that raised them.
Start to think about the language that was used in the home when your were growing up. Was it “money doesn’t grow on trees” or “no, we can’t afford that” or “Do you think we have a money tree growing in the yard” or “I’ll put that away for a rainy day” or “Money isn’t everything” and finally “Money is the root of all evil”. These are just some of the beliefs that have been handed down generation to generation in countries all around the world.
We encourage you to sit down and write down some of your beliefs around money. Also, ask your children whether they hear your limiting beliefs around money and what are they.
2. Financial Baseline
Your financial baseline is all about identifying where you are right now with your finances. You must take a look at the reality of your present financial situation. Start today, from where you are right now. It might be a little scary or fearful. You cannot get to where you want to go without knowing exactly where you are today. Start asking some very basic questions like How much money do you currently earn? How much money do you spend? For how much, and to whom are you in debt? Do you have anything set aside in savings?
Just remember, what you did yesterday, last month and last year does not have be indicative of what you are capable of doing in the future. The most important thing you can do is take stock of where you are right now!
Also, how do you keep your financial records. Do you keep things in a shoe box and only empty it out once every year. Do you have piles and piles of paperwork everywhere. Do you have a filing system set up? If you don’t have your finances organised then you will not have a good clear picture of your financial baseline.
3. Financial Freedom Day
Millionaires always have a plan. They determine their financial goals and take action to make them happen. Your Financial freedom Day is the day when you’ve reached your financial goals. To determine when your Financial Freedom Day is you need to know what your vision is. Your vision is a picture of how you want to be living sometime in the future. In order for you to be motivated and move towards your vision it must be exciting, realistic and must never compromise your valuues. You must also excercise no limit thinking. There are 3 things you need to clarify in order to declare your Financial Freedom Day. They are your monthly cashflow, your total net worth and the day, month, and year that you want this to occur.
4. Managing Your Lifestyle Choices
Managing lifestyle is all about managing your debt levels. It is about creating a debt elimination plan that will eliminate credit card debt. There is good debt and bad debt. Bad debt is debt associated with lifestyle choices. It is where you’re using your income to increase your liabilities. Good debt is debt that is acquired through the purchase of assets, assets that are then invested to produce passive income.
5. Foundation of Your Wealth Cycles
A wealth cycle is a process whereby you are paying yourself first before paying anyone and anything else. This ensures that money is being allocated to your asset column. It is something that is ongoing and the purchasing of assets does not just happen once. A wealth cycle also includes an understanding of entity structuring for the purpose of protection and tax. You must also make a decision about the type of investor you are whether you are active or passive. You must also develop some money rules and stick to them.
6. Acceleration fo Your Wealth Cycles
This is all about education. You must educate yourself in the areas you want to invest whether it be stocks and shares or real estate or international securities or commodoties or collectibles. Seek mentors and coaches that specialise in those areas of wealth creation.
7. Leadership of Your Wealth Team
No-one creates wealth without a team around them. No more ‘Lone Ranger’ you must surround yourself with team. Leadership of you wealth team is one of the most under-discussed areas of leading your wealth. Make no mistake, you are the leader of your wealth team, whether you realise it or not. Your job is to inspire, motivate, hold and communicate the vision to all of those on your team.
8. Creating Sustainable Action
Keep taking action each and every day. You must every night right out a list of revenue producing activities. You must work towards your Financial Freedom Day, every day. Even if they are small action steps it does not matter.
Expand your knowledge in these 8 fundamental steps through education, mentoring, coaching and acquiring specialised knowledge and it won’t take you long at all to achieve levels of wealth you never thought was possible.
CLEVELAND
Building wealth is all about having a system that implements fundamental steps that once you have learned can be applied to create wealth. These steps are crucial to achieving your Financial Freedom Day.
It is never too late to build a financial wall around you and your family that nothing can get through. This would be referred to as financial security. We call it your Financial Freedom Day! It is the day when you have enough assets that pay for all your expenses now and in the future. The quicker you identify your financial freedom day the better. It does not have to be 10, 15, 20 or even 30 years down the track. It is not unrealistic to have a Freedom Day of between 3-5 years. It is the day that you can travel with your family when and where you like with no restrictions, afford the home you want, put your children into the schools you desire and teach your children there are no limits.
Financial freedom is having an asset base which generates the income to not only meet your needs but to create a lifestyle that you dream of. You do not want to be relying on anyone for your financial freedom, the government, your employer, your partner, your husband, your family. Financial freedom changes your life!
So now you ask; how? How do I set a financial freedom day? How do I achieve fianancial freedom? Ask yourself At what age would you like to be financially free?
To achieve financial freedom you need a system. A proven, step-by-step, time tested system that will get you on the path to building wealth. This system
is called ‘Building Your Wealth Cycles’ comprising of 8 fundamental steps to building sustainable wealth. All entrepreneurs have a system to build wealth.
The 8 fundamental steps are as follows: -
1. Financial Conditioning
One of the first areas that must be looked at is your mindset with regards to money. Your mindset is a result of your financial conditioning, you must be aware of your conditioning and the impact it has on your potential to create wealth. You must be able to make the changes necessary to bring money and wealth into your life. We have been conditioned about our money beliefs from a very young age from people around us that loved us very much, like our parents, grand-parents, teachers, coaches, peer support leaders and other family and friends. They only know and understand what they have been taught about money from the family that raised them.
Start to think about the language that was used in the home when your were growing up. Was it “money doesn’t grow on trees” or “no, we can’t afford that” or “Do you think we have a money tree growing in the yard” or “I’ll put that away for a rainy day” or “Money isn’t everything” and finally “Money is the root of all evil”. These are just some of the beliefs that have been handed down generation to generation in countries all around the world.
We encourage you to sit down and write down some of your beliefs around money. Also, ask your children whether they hear your limiting beliefs around money and what are they.
2. Financial Baseline
Your financial baseline is all about identifying where you are right now with your finances. You must take a look at the reality of your present financial situation. Start today, from where you are right now. It might be a little scary or fearful. You cannot get to where you want to go without knowing exactly where you are today. Start asking some very basic questions like How much money do you currently earn? How much money do you spend? For how much, and to whom are you in debt? Do you have anything set aside in savings?
Just remember, what you did yesterday, last month and last year does not have be indicative of what you are capable of doing in the future. The most important thing you can do is take stock of where you are right now!
Also, how do you keep your financial records. Do you keep things in a shoe box and only empty it out once every year. Do you have piles and piles of paperwork everywhere. Do you have a filing system set up? If you don’t have your finances organised then you will not have a good clear picture of your financial baseline.
3. Financial Freedom Day
Millionaires always have a plan. They determine their financial goals and take action to make them happen. Your Financial freedom Day is the day when you’ve reached your financial goals. To determine when your Financial Freedom Day is you need to know what your vision is. Your vision is a picture of how you want to be living sometime in the future. In order for you to be motivated and move towards your vision it must be exciting, realistic and must never compromise your valuues. You must also excercise no limit thinking. There are 3 things you need to clarify in order to declare your Financial Freedom Day. They are your monthly cashflow, your total net worth and the day, month, and year that you want this to occur.
4. Managing Your Lifestyle Choices
Managing lifestyle is all about managing your debt levels. It is about creating a debt elimination plan that will eliminate credit card debt. There is good debt and bad debt. Bad debt is debt associated with lifestyle choices. It is where you’re using your income to increase your liabilities. Good debt is debt that is acquired through the purchase of assets, assets that are then invested to produce passive income.
5. Foundation of Your Wealth Cycles
A wealth cycle is a process whereby you are paying yourself first before paying anyone and anything else. This ensures that money is being allocated to your asset column. It is something that is ongoing and the purchasing of assets does not just happen once. A wealth cycle also includes an understanding of entity structuring for the purpose of protection and tax. You must also make a decision about the type of investor you are whether you are active or passive. You must also develop some money rules and stick to them.
6. Acceleration fo Your Wealth Cycles
This is all about education. You must educate yourself in the areas you want to invest whether it be stocks and shares or real estate or international securities or commodoties or collectibles. Seek mentors and coaches that specialise in those areas of wealth creation.
7. Leadership of Your Wealth Team
No-one creates wealth without a team around them. No more ‘Lone Ranger’ you must surround yourself with team. Leadership of you wealth team is one of the most under-discussed areas of leading your wealth. Make no mistake, you are the leader of your wealth team, whether you realise it or not. Your job is to inspire, motivate, hold and communicate the vision to all of those on your team.
8. Creating Sustainable Action
Keep taking action each and every day. You must every night right out a list of revenue producing activities. You must work towards your Financial Freedom Day, every day. Even if they are small action steps it does not matter.
Expand your knowledge in these 8 fundamental steps through education, mentoring, coaching and acquiring specialised knowledge and it won’t take you long at all to achieve levels of wealth you never thought was possible.
CLEVELAND
Nov
28
Filed Under (Finance) by wealth
Steven Miller asked:
Introduction
Reaching the parallax of wealth creation is like reaching the top of a hard mountain. However with innovative methods and a shift in mindset, the once hard trek to the top becomes a fair trip with paved roads, an overnight lodge, and some barbeque. Equipping ourselves with the right wealth creation techniques will make tall orders turn into silly hurdles.
However, people mistake that creating wealth is a trivial matter. People wrongly assume that a few wise investments and a lot of hard work will make them happy campers. However, after retirement, they find themselves wanting to go back to their working years once again. People thereby tend to underestimate the journey of creating wealth.
Wealth Creation Strategies
Wealth creation is not a random exercise. Using the analogy of a plant, we do not expect a beautiful plant to bloom as soon as you start throwing the seeds in your garden. Like plants, wealth and money should be patiently groomed, trimmed, and carefully guarded. Therefore having the correct method to grow money involves having proven foresight of wealth creation strategies.
A Mindset in Wealth Creation
According to Jamie McIntyre, having the correct wealth creation strategies is only 20% of the puzzle. The bulky 80% starts with having the right mindset. Having the right mindset governs an individual’s actions to orient him to act and think as a wealth builder. This way, he is able to grasp the different wealth creation strategies today and even devise his own strategy for his own advantage.
People wrongly assume that they can be responsible wealth builders if they just have seed money to start with. In this wrong mindset, strategies go out of the bunker and thinks that money easily begets more money. As a simple example, more people will take the one million dollars rather than be blessed with a millionaire’s mindset. “Give me the million first then I will buy my own strategies,” one can say. However, things just don’t work out that way.
To develop effective wealth creation strategies starts with developing a millionaire’s mindset. Strategies only serve as a vehicle of a master plotter. Therefore, a master plotter has to exist. Finding wealth creation opportunities does not rely on the best wealth creation strategies. Instead, opportunities are found by people with the mindset to create opportunities. Thus, the primary strategy in creating wealth is to develop a successful mindset. The faster that we change our mindset, the faster we can create what we want.
A sound wealth creation strategy without mindset will get you nowhere. However, someone who is lacking of strategy can get nowhere. People with a millionaire’s mindset find ways anyway. However having the correct wealth creation strategies and mindset is the measure of complete success.
Thus, a question is asked. Why do people fail? Jamie McIntyre, the author of “What I didn’t Learn in School but I Wish I Had” tells us that the cards dealt to us do not matter. There are different reasons why people fail to develop the correct mindset. Perspectives do give us the tool to look at things, but having the ability to change our perspective involves a set of positive traits that we should develop. By having accountability, gratitude, and the will to act, we as success-seekers can break barriers towards a more positive mindset.
It is important to know that one can learn wealth creation strategies just about anywhere. You find strategies in texts and in motivational materials. However the right mindset is found within you. No one can create and shape a mindset for you. Finding your mindset is perhaps the best strategy above all wealth creation strategies.
EMORY
Introduction
Reaching the parallax of wealth creation is like reaching the top of a hard mountain. However with innovative methods and a shift in mindset, the once hard trek to the top becomes a fair trip with paved roads, an overnight lodge, and some barbeque. Equipping ourselves with the right wealth creation techniques will make tall orders turn into silly hurdles.
However, people mistake that creating wealth is a trivial matter. People wrongly assume that a few wise investments and a lot of hard work will make them happy campers. However, after retirement, they find themselves wanting to go back to their working years once again. People thereby tend to underestimate the journey of creating wealth.
Wealth Creation Strategies
Wealth creation is not a random exercise. Using the analogy of a plant, we do not expect a beautiful plant to bloom as soon as you start throwing the seeds in your garden. Like plants, wealth and money should be patiently groomed, trimmed, and carefully guarded. Therefore having the correct method to grow money involves having proven foresight of wealth creation strategies.
A Mindset in Wealth Creation
According to Jamie McIntyre, having the correct wealth creation strategies is only 20% of the puzzle. The bulky 80% starts with having the right mindset. Having the right mindset governs an individual’s actions to orient him to act and think as a wealth builder. This way, he is able to grasp the different wealth creation strategies today and even devise his own strategy for his own advantage.
People wrongly assume that they can be responsible wealth builders if they just have seed money to start with. In this wrong mindset, strategies go out of the bunker and thinks that money easily begets more money. As a simple example, more people will take the one million dollars rather than be blessed with a millionaire’s mindset. “Give me the million first then I will buy my own strategies,” one can say. However, things just don’t work out that way.
To develop effective wealth creation strategies starts with developing a millionaire’s mindset. Strategies only serve as a vehicle of a master plotter. Therefore, a master plotter has to exist. Finding wealth creation opportunities does not rely on the best wealth creation strategies. Instead, opportunities are found by people with the mindset to create opportunities. Thus, the primary strategy in creating wealth is to develop a successful mindset. The faster that we change our mindset, the faster we can create what we want.
A sound wealth creation strategy without mindset will get you nowhere. However, someone who is lacking of strategy can get nowhere. People with a millionaire’s mindset find ways anyway. However having the correct wealth creation strategies and mindset is the measure of complete success.
Thus, a question is asked. Why do people fail? Jamie McIntyre, the author of “What I didn’t Learn in School but I Wish I Had” tells us that the cards dealt to us do not matter. There are different reasons why people fail to develop the correct mindset. Perspectives do give us the tool to look at things, but having the ability to change our perspective involves a set of positive traits that we should develop. By having accountability, gratitude, and the will to act, we as success-seekers can break barriers towards a more positive mindset.
It is important to know that one can learn wealth creation strategies just about anywhere. You find strategies in texts and in motivational materials. However the right mindset is found within you. No one can create and shape a mindset for you. Finding your mindset is perhaps the best strategy above all wealth creation strategies.
EMORY
Nov
28
Filed Under (Finance) by wealth
Koz Huseyin asked:
Turning debt into wealth can seem like an impossible task, especially if you find yourself in a position of debt. But, the principle of transforming debt into wealth is a sound one. And is a principle which has allowed many people to really make mass wealth thanks to the principle of turning debt into wealth.
Your principle is the most important thing to remember about wealth building and wealth creation. Your principle is the amount you start with, and if every gambler knew the principle of that first part of the money you have in your hands, they would never gamble!
You see, the principle amount of money you start with is the most important thing to protect. Someone should have told me that years ago! After having started my first real company, it started achieving success, but then turned for the worse. It ended up with me using up my credit card debt just to survive.
No, no, and no! I wish I learned this principle years ago! I am glad you are learning it now. Turning debt into wealth is not difficult when you know how, but the foundation is what counts, and that is the principle amount.
So, how do you turn debt into wealth? Realize that your principle could be your own money, but it does not have to be. I re-iterate that it doesn’t have to be your own money! When businesses want to expand, they get into debt!
Debt is the most important part of wealth, because it starts with some other person’s hard earned money. This saves years of effort to get to the first step.
To accomplish this needs some wisdom. If you are new to investing, making money for yourself instead of for someone else, you will not likely get the results you seek. Math comes in handy here, and here is why.
Understand the basics of math, which you did in school, and you will succeed in the wealth creation process. Imagine for a moment, you start with your principle, and after going through an equation, you get 1.5 times your principle.
This principle and the extra is essential. You protect the principle and the extra is profit, albeit gross profit. You need to factor in the debt to be able to convert into wealth. After all you want a profit.
So, you can put it in a high yielding savings account. Now, you have your principle protected, but if your credit card charges 30% per year compounded, then you have a problem with only getting a few percent from savings.
The biggest key is this - your debt can transform into wealth. Debt into wealth is not difficult, when you treat any kind of debt as a principle which can grow into a large tree of wealth.
BUD
Turning debt into wealth can seem like an impossible task, especially if you find yourself in a position of debt. But, the principle of transforming debt into wealth is a sound one. And is a principle which has allowed many people to really make mass wealth thanks to the principle of turning debt into wealth.
Your principle is the most important thing to remember about wealth building and wealth creation. Your principle is the amount you start with, and if every gambler knew the principle of that first part of the money you have in your hands, they would never gamble!
You see, the principle amount of money you start with is the most important thing to protect. Someone should have told me that years ago! After having started my first real company, it started achieving success, but then turned for the worse. It ended up with me using up my credit card debt just to survive.
No, no, and no! I wish I learned this principle years ago! I am glad you are learning it now. Turning debt into wealth is not difficult when you know how, but the foundation is what counts, and that is the principle amount.
So, how do you turn debt into wealth? Realize that your principle could be your own money, but it does not have to be. I re-iterate that it doesn’t have to be your own money! When businesses want to expand, they get into debt!
Debt is the most important part of wealth, because it starts with some other person’s hard earned money. This saves years of effort to get to the first step.
To accomplish this needs some wisdom. If you are new to investing, making money for yourself instead of for someone else, you will not likely get the results you seek. Math comes in handy here, and here is why.
Understand the basics of math, which you did in school, and you will succeed in the wealth creation process. Imagine for a moment, you start with your principle, and after going through an equation, you get 1.5 times your principle.
This principle and the extra is essential. You protect the principle and the extra is profit, albeit gross profit. You need to factor in the debt to be able to convert into wealth. After all you want a profit.
So, you can put it in a high yielding savings account. Now, you have your principle protected, but if your credit card charges 30% per year compounded, then you have a problem with only getting a few percent from savings.
The biggest key is this - your debt can transform into wealth. Debt into wealth is not difficult, when you treat any kind of debt as a principle which can grow into a large tree of wealth.
BUD
Nov
08
Filed Under (Finance) by wealth
Kevin Sinclair asked:
We are only on this earth for a short time and wealth creation can seem a real mystery. A lot of people apparently have no problem becoming wealthy but others struggle to make sense of how to get on their feet, let alone experience financial abundance.
No matter how discouraged you currently are about your financial situation, you too can become wealthy if you are willing to learn the keys to wealth creation.
The first step to wealth creation is to actually get some perspective. If you are reading this article on your own computer, you are really already wealthy. Compared to most of the world’s population, a warm comfortable home, plenty of good food and the benefits of a first world society are signs of great wealth.
Unfortunately, most of us take these things for granted and do not recognize them as wealth. Understandably, when we struggle to support ourselves from week to week we can feel poor. Certainly, when we are under financial stress it is hard to feel wealthy.
However, wealth is a state of mind. Our focus predicts the outcomes in our lives so we need to control the way we think if we want to become wealthy. For example, if you are always thinking about bills you’ll find it difficult to pay them. If you wallow in how bad your life is, you can become entrenched in poverty.
The way you think about wealth will determine whether or not you have any. It starts in your mind. The answer to poverty is abundance, so focus on all the abundance in your life right now. You will have to be disciplined to ignore mounting bills or insufficient income and focus on all the things you have to be grateful for.
With the right mindset, your world will suddenly present a host of new opportunities to choose from. All you have to do is open up to the possibilities and appreciate everything that is in your life already. Begin to pay attention to the good and you will see more good appearing in your life.
Wealth begins in the mind. You will find that your thoughts and emotions are the powerful creators of your life experiences. If you want to experience prosperity, take charge of your mind. Ask yourself better questions. Look positively at your current circumstances to find the seeds of future abundance.
Sometimes you cannot think prosperous thoughts until you get rid of unhelpful beliefs about wealth. Pay attention to the things you say to yourself about money and begin to turn negative statements around. Once you think prosperous thoughts and speak prosperous words you will be in a better position to become wealthy. Be patient with yourself and make one change at a time.
Once you have put your mind into the right gear to become wealthy, the next step is to deliberately look for opportunities to become prosperous and successful. Remember, we get what we focus on. Simply by focusing on opportunities, we will find them showing up in our lives.
Then we have to take action. Wealth doesn’t magically appear. We have to take the right action to create it. So, as well as discovering wealth creation opportunities, you need to take action to turn them into reality.
Perhaps your local community can benefit from a product or service you can sell. Alternatively, online opportunities for wealth creation abound. Whether you can sell your services online or market products, there is a vast potential to create wealth on the internet. Begin to focus on the possibilities.
Be proactive and be willing to continually make adjustments in your life to improve your financial position. Do you waste a lot of time in front of the television? How about reading up on internet marketing instead? Perhaps you could invest in your education instead of being the passive beneficiary of somebody else’s creativity while your watching “the box.”
This article doesn’t have all the answers. It is meant to be a gentle push in the right direction. If you use these ideas to start you on your journey to wealth, you will be well on your way to a more prosperous life.
Spiritual teachers say that the teacher appears when the student is ready. By being willing to change and looking for the answers all around you, you are showing that you are ready. You will find that people and opportunities will begin to appear in your life that will move you towards a more successful and abundant future.
ELISHA
We are only on this earth for a short time and wealth creation can seem a real mystery. A lot of people apparently have no problem becoming wealthy but others struggle to make sense of how to get on their feet, let alone experience financial abundance.
No matter how discouraged you currently are about your financial situation, you too can become wealthy if you are willing to learn the keys to wealth creation.
The first step to wealth creation is to actually get some perspective. If you are reading this article on your own computer, you are really already wealthy. Compared to most of the world’s population, a warm comfortable home, plenty of good food and the benefits of a first world society are signs of great wealth.
Unfortunately, most of us take these things for granted and do not recognize them as wealth. Understandably, when we struggle to support ourselves from week to week we can feel poor. Certainly, when we are under financial stress it is hard to feel wealthy.
However, wealth is a state of mind. Our focus predicts the outcomes in our lives so we need to control the way we think if we want to become wealthy. For example, if you are always thinking about bills you’ll find it difficult to pay them. If you wallow in how bad your life is, you can become entrenched in poverty.
The way you think about wealth will determine whether or not you have any. It starts in your mind. The answer to poverty is abundance, so focus on all the abundance in your life right now. You will have to be disciplined to ignore mounting bills or insufficient income and focus on all the things you have to be grateful for.
With the right mindset, your world will suddenly present a host of new opportunities to choose from. All you have to do is open up to the possibilities and appreciate everything that is in your life already. Begin to pay attention to the good and you will see more good appearing in your life.
Wealth begins in the mind. You will find that your thoughts and emotions are the powerful creators of your life experiences. If you want to experience prosperity, take charge of your mind. Ask yourself better questions. Look positively at your current circumstances to find the seeds of future abundance.
Sometimes you cannot think prosperous thoughts until you get rid of unhelpful beliefs about wealth. Pay attention to the things you say to yourself about money and begin to turn negative statements around. Once you think prosperous thoughts and speak prosperous words you will be in a better position to become wealthy. Be patient with yourself and make one change at a time.
Once you have put your mind into the right gear to become wealthy, the next step is to deliberately look for opportunities to become prosperous and successful. Remember, we get what we focus on. Simply by focusing on opportunities, we will find them showing up in our lives.
Then we have to take action. Wealth doesn’t magically appear. We have to take the right action to create it. So, as well as discovering wealth creation opportunities, you need to take action to turn them into reality.
Perhaps your local community can benefit from a product or service you can sell. Alternatively, online opportunities for wealth creation abound. Whether you can sell your services online or market products, there is a vast potential to create wealth on the internet. Begin to focus on the possibilities.
Be proactive and be willing to continually make adjustments in your life to improve your financial position. Do you waste a lot of time in front of the television? How about reading up on internet marketing instead? Perhaps you could invest in your education instead of being the passive beneficiary of somebody else’s creativity while your watching “the box.”
This article doesn’t have all the answers. It is meant to be a gentle push in the right direction. If you use these ideas to start you on your journey to wealth, you will be well on your way to a more prosperous life.
Spiritual teachers say that the teacher appears when the student is ready. By being willing to change and looking for the answers all around you, you are showing that you are ready. You will find that people and opportunities will begin to appear in your life that will move you towards a more successful and abundant future.
ELISHA
Sep
06
Filed Under (Finance) by wealth
Trish Davies asked:
Women are discovering that money is power. They are now learning how to earn it, accumulate it, invest it, spend it and manage it like a professional.
According to a special programme presented by BBC Radio4’s Money Box which looked at women and finance they revealed that within 20 years women will control 60% of the personal wealth in the UK, claimed research published earlier this year. There are also 24% more women millionaires under the age of 44 than men, the report added.
This is a trend occuring in the United States and also here in Australia. However, there is still some catching up to do according to Forbes.com of 497 billionaires on the Forbes ‘World’s Richest People’ only 35, or 7% are women. Among them, only one is self-made. The other women on the list inherited money and in some cases whole companies, from their fathers or husbands. The reason being is that equal opportunity for women has only been around in the last 20 years.
Women now starting to take control! Women now are experiencing more opportunities, education and financial independence. If they need any reason to have control of their own money, here are some facts that may surprise you.
Women are marrying later, however, the money mistakes that are made early can linger into marriage and causes stress. With divorce dissolving almost one out of two marraiges, money is the leading cause of all divorces.
The poverty rate among children quadruples when they live with a divorced mum instead of married parents. When women are left to bring in the income, raise children and manage a home there is no time left whatsoever and the money does not go very far.
Women outlive men by an average of 7 to 9 years, many of them spending the better part of the last decade of their lives on their own. But many are widowed long before retirement. The average age when a woman is widowed is 56.
The income of widows drops 44% within three years after a husband’s death, due in part to the loss of the husbands private pension benefits. Social security is anything but secure.
These statistics indicate that women must learn to become financially literate and take control of their financial destiny. It is a known fact that a lot of women have not been raised with the same thought processes around money.
Men and women think very differently about money. The way girls were taught and conditioned about money was different than how boys were ‘initiated’ into money matters. Not that boys are given any better training about money! But the presumption was they had to learn financial responsibility as they approached adulthood.
Our culture doesn’t automatically support women in gaining financial competence. Worse, we draw much of our training from the media or people who are not skilled in money matters.
Building wealth is all about money and money is a highly charged, emotional topic. Most women function better in a non-threatening, non-confrontational learning environment that doesn’t intimidate them. Women need to seek out education and mentors they are comfortable with to develop their confidence around money and give them the steps to build wealth.
Building wealth is all about having a system that implements fundamental steps that once you have learned can be applied to create wealth. These steps are crucial to achieving your Financial independence.
It is never too late to build a financial wall around you and your family that nothing can get through. This would be referred to as financial security. We call it your Financial Freedom Day! It is the day when you have enough assets that pay for all your expenses now and in the future. The quicker you identify your financial freedom day the better. It does not have to be 10, 15, 20 or even 30 years down the track. It is not unrealistic to have a Freedom Day of between 3-5 years. It is the day that you can travel with your family when and where you like with no restrictions, afford the home you want, put your children into the schools you desire and teach your children there are no limits.
Financial independence is having an asset base which generates the income to not only meet your needs but to create a lifestyle that you dream of. You do not want to be relying on anyone for your financial independence, the government, your employer, your partner, your husband, your family. Financial freedom changes your life!
So now you ask; how? How do I set a financial freedom day? How do I achieve fianancial independence? Ask yourself At what age would you like to be financially free?
You need a system. A proven, step-by-step, time tested system comprising of 8 fundamental steps to building sustainable wealth. All entrepreneurs have a system to build wealth.
The system 8 fundamental steps are as follows: -
1. Financial Conditioning
One of the first areas that must be looked at is your mindset with regards to money. Your mindset is a result of your financial conditioning, you must be aware of your conditioning and the impact it has on your potential to create wealth. You must be able to make the changes necessary to bring money and wealth into your life. We have been conditioned about our money beliefs from a very young age from people around us that loved us very much, like our parents, grand-parents, teachers, coaches, peer support leaders and other family and friends. They only know and understand what they have been taught about money from the family that raised them.
Start to think about the language that was used in the home when your were growing up. Was it “money doesn’t grow on trees” or “no, we can’t afford that” or “Do you think we have a money tree growing in the yard” or “I’ll put that away for a rainy day” or “Money isn’t everything” and finally “Money is the root of all evil”. These are just some of the beliefs that have been handed down generation to generation in countries all around the world.
We encourage you to sit down and write down some of your beliefs around money. Also, ask your children whether they hear your limiting beliefs around money and what are they.
2. Financial Baseline
Your financial baseline is all about identifying where you are right now with your finances. You must take a look at the reality of your present financial situation. Start today, from where you are right now. It might be a little scary or fearful. You cannot get to where you want to go without knowing exactly where you are today. Start asking some very basic questions like How much money do you currently earn? How much money do you spend? For how much, and to whom are you in debt? Do you have anything set aside in savings?
Just remember, what you did yesterday, last month and last year does not have be indicative of what you are capable of doing in the future. The most important thing you can do is take stock of where you are right now!
Also, how do you keep your financial records. Do you keep things in a shoe box and only empty it out once every year. Do you have piles and piles of paperwork everywhere. Do you have a filing system set up? If you don’t have your finances organised then you will not have a good clear picture of your financial baseline.
3. Financial Freedom Day
Millionaires always have a plan. They determine their financial goals and take action to make them happen. Your Financial freedom Day is the day when you’ve reached your financial goals. To determine when your Financial Freedom Day is you need to know what your vision is. Your vision is a picture of how you want to be living sometime in the future. In order for you to be motivated and move towards your vision it must be exciting, realistic and must never compromise your valuues. You must also excercise no limit thinking. There are 3 things you need to clarify in order to declare your Financial Freedom Day. They are your monthly cashflow, your total net worth and the day, month, and year that you want this to occur.
4. Managing Your Lifestyle Choices
Managing lifestyle is all about managing your debt levels. It is about creating a debt elimination plan that will eliminate credit card debt. There is good debt and bad debt. Bad debt is debt associated with lifestyle choices. It is where you’re using your income to increase your liabilities. Good debt is debt that is acquired through the purchase of assets, assets that are then invested to produce passive income.
5. Foundation of Your Wealth Cycles
A wealth cycle is a process whereby you are paying yourself first before paying anyone and anything else. This ensures that money is being allocated to your asset column. It is something that is ongoing and the purchasing of assets does not just happen once. A wealth cycle also includes an understanding of entity structuring for the purpose of protection and tax. You must also make a decision about the type of investor you are whether you are active or passive. You must also develop some money rules and stick to them.
6. Acceleration fo Your Wealth Cycles
This is all about education. You must educate yourself in the areas you want to invest whether it be stocks and shares or real estate or international securities or commodoties or collectibles. Seek mentors and coaches that specialise in those areas of wealth creation.
7. Leadership of Your Wealth Team
No-one creates wealth without a team around them. No more ‘Lone Ranger’ you must surround yourself with team. Leadership of you wealth team is one of the most under-discussed areas of leading your wealth. Make no mistake, you are the leader of your wealth team, whether you realise it or not. Your job is to inspire, motivate, hold and communicate the vision to all of those on your team.
8. Creating Sustainable Action
Keep taking action each and every day. You must every night right out a list of revenue producing activities. You must work towards your Financial Freedom Day, every day. Even if they are small action steps it does not matter.
Expand your knowledge in these 8 fundamental steps through education, mentoring, coaching and acquiring specialised knowledge and it won’t take you long at all to achieve levels of wealth you never thought was possible.
ADAN
Women are discovering that money is power. They are now learning how to earn it, accumulate it, invest it, spend it and manage it like a professional.
According to a special programme presented by BBC Radio4’s Money Box which looked at women and finance they revealed that within 20 years women will control 60% of the personal wealth in the UK, claimed research published earlier this year. There are also 24% more women millionaires under the age of 44 than men, the report added.
This is a trend occuring in the United States and also here in Australia. However, there is still some catching up to do according to Forbes.com of 497 billionaires on the Forbes ‘World’s Richest People’ only 35, or 7% are women. Among them, only one is self-made. The other women on the list inherited money and in some cases whole companies, from their fathers or husbands. The reason being is that equal opportunity for women has only been around in the last 20 years.
Women now starting to take control! Women now are experiencing more opportunities, education and financial independence. If they need any reason to have control of their own money, here are some facts that may surprise you.
Women are marrying later, however, the money mistakes that are made early can linger into marriage and causes stress. With divorce dissolving almost one out of two marraiges, money is the leading cause of all divorces.
The poverty rate among children quadruples when they live with a divorced mum instead of married parents. When women are left to bring in the income, raise children and manage a home there is no time left whatsoever and the money does not go very far.
Women outlive men by an average of 7 to 9 years, many of them spending the better part of the last decade of their lives on their own. But many are widowed long before retirement. The average age when a woman is widowed is 56.
The income of widows drops 44% within three years after a husband’s death, due in part to the loss of the husbands private pension benefits. Social security is anything but secure.
These statistics indicate that women must learn to become financially literate and take control of their financial destiny. It is a known fact that a lot of women have not been raised with the same thought processes around money.
Men and women think very differently about money. The way girls were taught and conditioned about money was different than how boys were ‘initiated’ into money matters. Not that boys are given any better training about money! But the presumption was they had to learn financial responsibility as they approached adulthood.
Our culture doesn’t automatically support women in gaining financial competence. Worse, we draw much of our training from the media or people who are not skilled in money matters.
Building wealth is all about money and money is a highly charged, emotional topic. Most women function better in a non-threatening, non-confrontational learning environment that doesn’t intimidate them. Women need to seek out education and mentors they are comfortable with to develop their confidence around money and give them the steps to build wealth.
Building wealth is all about having a system that implements fundamental steps that once you have learned can be applied to create wealth. These steps are crucial to achieving your Financial independence.
It is never too late to build a financial wall around you and your family that nothing can get through. This would be referred to as financial security. We call it your Financial Freedom Day! It is the day when you have enough assets that pay for all your expenses now and in the future. The quicker you identify your financial freedom day the better. It does not have to be 10, 15, 20 or even 30 years down the track. It is not unrealistic to have a Freedom Day of between 3-5 years. It is the day that you can travel with your family when and where you like with no restrictions, afford the home you want, put your children into the schools you desire and teach your children there are no limits.
Financial independence is having an asset base which generates the income to not only meet your needs but to create a lifestyle that you dream of. You do not want to be relying on anyone for your financial independence, the government, your employer, your partner, your husband, your family. Financial freedom changes your life!
So now you ask; how? How do I set a financial freedom day? How do I achieve fianancial independence? Ask yourself At what age would you like to be financially free?
You need a system. A proven, step-by-step, time tested system comprising of 8 fundamental steps to building sustainable wealth. All entrepreneurs have a system to build wealth.
The system 8 fundamental steps are as follows: -
1. Financial Conditioning
One of the first areas that must be looked at is your mindset with regards to money. Your mindset is a result of your financial conditioning, you must be aware of your conditioning and the impact it has on your potential to create wealth. You must be able to make the changes necessary to bring money and wealth into your life. We have been conditioned about our money beliefs from a very young age from people around us that loved us very much, like our parents, grand-parents, teachers, coaches, peer support leaders and other family and friends. They only know and understand what they have been taught about money from the family that raised them.
Start to think about the language that was used in the home when your were growing up. Was it “money doesn’t grow on trees” or “no, we can’t afford that” or “Do you think we have a money tree growing in the yard” or “I’ll put that away for a rainy day” or “Money isn’t everything” and finally “Money is the root of all evil”. These are just some of the beliefs that have been handed down generation to generation in countries all around the world.
We encourage you to sit down and write down some of your beliefs around money. Also, ask your children whether they hear your limiting beliefs around money and what are they.
2. Financial Baseline
Your financial baseline is all about identifying where you are right now with your finances. You must take a look at the reality of your present financial situation. Start today, from where you are right now. It might be a little scary or fearful. You cannot get to where you want to go without knowing exactly where you are today. Start asking some very basic questions like How much money do you currently earn? How much money do you spend? For how much, and to whom are you in debt? Do you have anything set aside in savings?
Just remember, what you did yesterday, last month and last year does not have be indicative of what you are capable of doing in the future. The most important thing you can do is take stock of where you are right now!
Also, how do you keep your financial records. Do you keep things in a shoe box and only empty it out once every year. Do you have piles and piles of paperwork everywhere. Do you have a filing system set up? If you don’t have your finances organised then you will not have a good clear picture of your financial baseline.
3. Financial Freedom Day
Millionaires always have a plan. They determine their financial goals and take action to make them happen. Your Financial freedom Day is the day when you’ve reached your financial goals. To determine when your Financial Freedom Day is you need to know what your vision is. Your vision is a picture of how you want to be living sometime in the future. In order for you to be motivated and move towards your vision it must be exciting, realistic and must never compromise your valuues. You must also excercise no limit thinking. There are 3 things you need to clarify in order to declare your Financial Freedom Day. They are your monthly cashflow, your total net worth and the day, month, and year that you want this to occur.
4. Managing Your Lifestyle Choices
Managing lifestyle is all about managing your debt levels. It is about creating a debt elimination plan that will eliminate credit card debt. There is good debt and bad debt. Bad debt is debt associated with lifestyle choices. It is where you’re using your income to increase your liabilities. Good debt is debt that is acquired through the purchase of assets, assets that are then invested to produce passive income.
5. Foundation of Your Wealth Cycles
A wealth cycle is a process whereby you are paying yourself first before paying anyone and anything else. This ensures that money is being allocated to your asset column. It is something that is ongoing and the purchasing of assets does not just happen once. A wealth cycle also includes an understanding of entity structuring for the purpose of protection and tax. You must also make a decision about the type of investor you are whether you are active or passive. You must also develop some money rules and stick to them.
6. Acceleration fo Your Wealth Cycles
This is all about education. You must educate yourself in the areas you want to invest whether it be stocks and shares or real estate or international securities or commodoties or collectibles. Seek mentors and coaches that specialise in those areas of wealth creation.
7. Leadership of Your Wealth Team
No-one creates wealth without a team around them. No more ‘Lone Ranger’ you must surround yourself with team. Leadership of you wealth team is one of the most under-discussed areas of leading your wealth. Make no mistake, you are the leader of your wealth team, whether you realise it or not. Your job is to inspire, motivate, hold and communicate the vision to all of those on your team.
8. Creating Sustainable Action
Keep taking action each and every day. You must every night right out a list of revenue producing activities. You must work towards your Financial Freedom Day, every day. Even if they are small action steps it does not matter.
Expand your knowledge in these 8 fundamental steps through education, mentoring, coaching and acquiring specialised knowledge and it won’t take you long at all to achieve levels of wealth you never thought was possible.
ADAN
