On a basic level, wealth-building starts with nothing more than spending less than you make. The problem is that most of us do the opposite. I’ve been fortunate enough to have done a few things right, and I’ve gone from having $200 in my pocket many years ago to currently having a net worth of over $10,000,000. These are the steps that I used to achieve that.
The first step is to start now. The earlier the better, of course, but even if you’re in your 50s like me, saving and investing still works. The longer you do it, the greater the snowball effect you will have, but it’s never too late to start. Pick an amount you will absolutely commit to, like 20 percent of your income, and do itno matter what.
The second step is to have a “why” and a detailed vision of what you want your life to look like when you achieve your dream of wealth. If you aren’t passionate and completely committed, you will give in to the temptations of our consumption economy. When I was young, I saw that money gave you options and that it allowed you to help more people and make a bigger impact in the world around you. I decided that if I worked hard enough and invested well in the first half of my life, I would be able to make a bigger impact through giving in the last half of my life. That vision was so clear in my mind that I never strayed from my original goal, which has gotten me to the point today where I’m living the life I dreamed about so long ago.
The third step is to create a plan and buy assets, not liabilities. I used real estate and rental properties as my vehicle for wealth-building, but the fundamental concept is to invest your money into assets that will produce income. It could be the stock market or any other business for that matter. I knew that if I invested in an asset that was able to give me cash flow from my initial investment, I could use that cash flow to buy more properties or any other asset. I grew my wealth by using other people’s money, and I didn’t buy liabilities, such as big boats or expensive cars. I lived way below my means, and I still do.
The fourth step is to get educated. Any investment has some inherent risk. We live in a world where anything you need to learn is at your fingertips, but it takes time and commitment. No matter what you’re investing in, learn the fundamentals and manage the risks. There are always ups and downs or booms and busts in our economy. In most cases, enough cash reserves and a good knowledge base on how to handle market changes will help you create the life of your dreams.
By Paul Wheeler
If you have any specific questions, or if you’d like a free copy of my wealth-building eBook, don’t hesitate to call me at 918-665-8559 or email me at [email protected].
Workman Success Systems’ team coach Paul Wheeler started his team as a licensed agent and broker in 1992. Leading his team with energy, experience and a vision for the future, as well as a better business model in the real estate industry, Wheeler and his team strive to continually improve their processes with a focus on learning and staying on top of market trends. His passion for real estate is only surpassed by his commitment to community service and his family. For more information, please visit www.workmansuccesssystems.com.
Photo by Fabian Blank on Unsplash