The 3 Fundamental Wealth-building Principles Which Have Stood the Test of Time (Part 3)
This post is the last part of the The 3 Fundamental Wealth-building Principles Which Have Stood the Test of Time series. You might be interested, please check out Part 1 and Part 2 of this blog series.
Wealth Principle 3
It is not how much you make, it is what you do with what you make is the difference
I have met people that earn millions of dollars a year and yet are still broke at the end of the month and by the looks of their current trajectory, they are going to stay that way and struggle in retirement, never achieving financial freedom and tied to a job. I have also met single mothers earning under $40,000 a year build a solid financial fortress around themselves and get on the way to building sustainable wealth, financial freedom and leave a legacy for their family despite the odds being stacked against them and it all has to do with this principle.
Although of course, the more income you can pour in the top end, the better; but the differentiating factor of those who build wealth versus those who stay in struggle is what they do with the money they earn.
This is really critical to take in, as so many people are waiting until they have more money before they start or before they have a better job, or they own their home outright, or their kids are grown up or . They keep waiting and waiting for what they perceive to be the right time to start investing and focusing on growing their wealth and are left waiting for years often until they then decide it is too late to start or go into panic mode. The sooner you begin focusing on getting your money working hard for you instead of you always having to work hard for money, the closer financial freedom is going to begin moving towards you.
Of course you want to continue increasing your income and your cash flow from what you do which is for most people earning an income from a job or a business, but this could also be from creating a side business or multiple income streams, the more cash flow you throw into the top end, the more you have to get working for you on the backend.
- Continuously increase your earning power and cash flow by focusing on adding more value instead of just exchanging time for money.
As income flows in…
- Have a plan, a flow and system for what is going to happen to money when it comes into your life and begin managing your financial life like a business.
The money, which goes into your investment buckets, you will…
- Invest and grow your capital in a strategic way with a plan which is designed to begin moving you from where you are right now to a place in your life where you have all of the choices and freedoms to spend your life how you want to, with the people you love.
At every stage…
- Protect yourself, your family and your wealth for the long term. Stuff is going to happen along the way, it probably won’t all be smooth sailing and you need to be able to weather the storms when they roll into our lives and then come out the other end and continue building in the sunshine of our lives.
Do what you can, With what you have, Where you are
- Make a written commitment to yourself that from this day forward you are making wealth and financial freedom a priority in your life. On this commitment write the strong reasons why you are doing this and what building wealth and financial freedom will do for you in your life.
- Review these 3 wealth principles and identify in your life where the opportunity is for you to get started with and with every opportunity you identify write down 2-3 small action steps you can take to build momentum.
- Start. Just start. Do what you can with what you have, where you are.