5 Things That Will Make You Wealthy
There are five primary ways people become wealthy. Many times they are steps in a process that build one on top of another to create the capital to invest for wealth creation.
Let’s look at each of the five steps.
1. Financial Goals
The first step to wealth is having goals on what it is exactly you want to accomplish, how much money you want, and how you want to get there. While most self-made millionaires don’t know exactly how they will reach their financial goals they do know what they want. Most want freedom and financial security and they know a job is not something they want to do for forty years.
Financial goals should be written down to be more quantified and also to tell your subconscious mind what you want and let it know to be on the lookout for all opportunities to achieve the goals.
2. Use your earned income to buy or create cash flowing assets.
Most people start with a job but that doesn’t mean that is where you stay. You should be converting your paychecks to capital by investing it in things that cash flow over and over. You can start small and build and grow your cash flow by reinvesting your returns into buying new assets.
Cash flowing assets can be as complex as covered calls, dividend stocks, or high yield bonds or as simple as book royalties, a YouTube channel, or a website. Physical cash flowing assets are things like vending machines and businesses like storage units, laundromats, and car washes.
3. Use debt for assets not consumer goods.
Using consumer debt to buy depreciating assets will leave you both trapped in a job and also broke as you become a company’s cash flowing asset. Using debt to purchase things like real estate, businesses, and cash flowing assets can raise your net worth over time, increase you income, and lead to building wealth.
4. Build A Business
If you look at both the wealthiest people in the world or self-made millionaire studies the majority of both built a business and used the leverage to build wealth. The bigger the business the greater the wealth.
The successful billionaires built a business, took it public, and continued to own a huge percentage of shares as they grew it into a large cap company.
5. Investing or trading a quantified strategy with an edge.
Many millionaires achieved their status by building their investments into a million dollar portfolio through compounding and investing their earned income into a 401k with an employer match speeding up the process of growth. A tax deferred 401k also helps you put in capital without losing it to income taxes and it also grows tax free until you take out.
Investing in the stock market enables you to build wealth along with the growth of publicly traded companies and billionaires holding their own stocks in their companies.
By Steve Burns
Start a blog here
There are five primary ways people become wealthy. Many times they are steps in a process that build one on top of another to create the capital to invest for wealth creation.
Let’s look at each of the five steps.
1. Financial Goals
The first step to wealth is having goals on what it is exactly you want to accomplish, how much money you want, and how you want to get there. While most self-made millionaires don’t know exactly how they will reach their financial goals they do know what they want. Most want freedom and financial security and they know a job is not something they want to do for forty years.
Financial goals should be written down to be more quantified and also to tell your subconscious mind what you want and let it know to be on the lookout for all opportunities to achieve the goals.
2. Use your earned income to buy or create cash flowing assets.
Most people start with a job but that doesn’t mean that is where you stay. You should be converting your paychecks to capital by investing it in things that cash flow over and over. You can start small and build and grow your cash flow by reinvesting your returns into buying new assets.
Cash flowing assets can be as complex as covered calls, dividend stocks, or high yield bonds or as simple as book royalties, a YouTube channel, or a website. Physical cash flowing assets are things like vending machines and businesses like storage units, laundromats, and car washes.
3. Use debt for assets not consumer goods.
Using consumer debt to buy depreciating assets will leave you both trapped in a job and also broke as you become a company’s cash flowing asset. Using debt to purchase things like real estate, businesses, and cash flowing assets can raise your net worth over time, increase you income, and lead to building wealth.
4. Build A Business
If you look at both the wealthiest people in the world or self-made millionaire studies the majority of both built a business and used the leverage to build wealth. The bigger the business the greater the wealth.
The successful billionaires built a business, took it public, and continued to own a huge percentage of shares as they grew it into a large cap company.
5. Investing or trading a quantified strategy with an edge.
Many millionaires achieved their status by building their investments into a million dollar portfolio through compounding and investing their earned income into a 401k with an employer match speeding up the process of growth. A tax deferred 401k also helps you put in capital without losing it to income taxes and it also grows tax free until you take out.
Investing in the stock market enables you to build wealth along with the growth of publicly traded companies and billionaires holding their own stocks in their companies.
By Steve Burns
Start a blog here