Are you ready to start building wealth rather than just making a living? If you already have a good income, are you ready to get off the high income/no net worth treadmill and start down the road to financial freedom? No matter what financial circumstance you’re in, here’s how you can achieve financial freedom:
1.A mentor in the family, neighborhood, school, public, or in books who can serve as a role model.
2.A marketable skill that can earn money will become gainful employment. A skill that does not earn money will just become a hobby.
3.Delayed gratification priorities. A dollar invested today instead of spent today will add up to many more dollars to spend in the future.
Know these critical distinctions
1.Good debt vs. bad debt—Bad debt is debt that requires you to use your work, time, and effort to pay off, and after 10 to 20 years you’re left holding something with little or no value. Examples of bad debt are unnecessary consumer credit card debt, expensive cars, big RVs, and large boats, all purchased with borrowed money. Good debt is debt structured so someone else uses their work, time, and effort to pay it off for you, and they leave you with something that has more value than what you started with. With income-producing real estate, such as affordable rental homes, your tenants will work more than a week each month to pay your mortgage, your property taxes, and your insurance. After 20 years, they will leave you with a debt-free, income-producing asset to fund your retirement.
2.Rich vs. wealthy—Rich is a high income/high expense lifestyle. Rich is usually also a high income/no net worth treadmill that some people are on until the day they die. Wealth is a measure of both time and money. It is how long you can live the lifestyle of your choosing supported solely by your investment income. Wealth is true financial freedom and it does not require a high net worth to achieve.
Consider a financial advisor
Your efforts should be guided by a qualified accountant, tax attorney, estate planner, and financial advisor. Remember, it’s always best to obtain advice from someone who has already accomplished what you’re trying to achieve. Do not expect someone to guide you up the “net worth mountain” if they haven’t been able to do it for themselves. Get your financial advice from those higher on the financial food chain.
The (your name here) economy
Remember, it is your economy, the (your name here) economy that effects you the most. You can only balance your own checkbook, service your own debt, and build your own wealth.
Yes, you really do have the potential to build wealth! Use the basic tools of putting your hard earned money into assets instead of liabilities, be aware of the implications of the coming demographic changes, and always know where you are on the economic cycle.