If you’re a newbie to money, there are a few things you should know before you begin. First, a wealth mindset must be developed. Once you establish that mindset, you can focus on creating your wealth.
1) Money Beliefs
Developing a wealth-creating strategy is based on understanding your underlying money beliefs. Money worshipers believe that more money will solve all their problems. In their mind, the accumulation of money will lead to happiness and satisfaction. Often, money worshippers prioritize work over family and social relationships. These beliefs can have a negative impact on their life, especially if they do not have any assets to protect.
It is important to understand that accumulating wealth is not easy, and high salaries do not guarantee it. It takes deliberate budgeting and investing to create wealth. Moreover, money will lose its value with inflation, so we need to be intentional about budgeting and investing. This personal wealth guide is written by the Founder of Global Wealth Hub, Alex Silva, whose clients are first-generation millionaires. However, even the richest people will need a wealth-creating plan to achieve success.
Alex Found out that The beliefs of money are a key component in creating massive wealth. You can have all the knowledge in the world, but, if you believe that you cannot/deserve wealth in your life, you are over, even before you start playing.
Brief Exercise about Money Beliefs:
Complete the sentences below, hold your inner critic, and be Authentic.
Money makes me feel…
I believe that in this world money is…
People who have money are…
If I were to get really wealthy, my friends and family would…
When I think about financial freedom, I think about…
My parents believed that money is…
What beliefs or associations do you have about money ? Are they positive or negative? If you resent wealthy people and think that they are evil, then your unconscious mind will NEVER allow you to become wealthy. Why? This is because if you become rich, then you will become a ‘bad person’.
2) Cashflow strategies
Developing a cash flow strategy for your business will help you set goals, know where to save, and when to save. While you may be a good manager and can control your expenses, you can still create wealth if your spending habits are bad. The key to wealth creation is living below your means and saving for your retirement, or debt repayment. These are common and effective cashflow strategies that can be implemented by couples and individuals alike.
One strategy is to consider the amount of cash you generate each month and divide your income into pre-tax and post-tax accounts. Pre-tax accounts, such as your 401(k), can be withdrawn when you are experiencing low taxes. On the other hand, high-tax accounts, like brokerage accounts, will require you to pay taxes when you withdraw money. By contrast, a Roth IRA, on the other hand, will not require you to pay taxes upon withdrawal.
We teach you the cashflow of the rich in our online Program – Personal Wealth Creation.
3) Massively Increase your income
You need to build a solid emergency fund. This is like self-funded insurance – a reserve fund of money set aside to pay unexpected bills or to invest in the event of a catastrophe. It will help you survive a job loss, pandemic lockdown, or other unexpected circumstances. You should also set up recurring payments for all bills and investment accounts. You should review your automated plan annually, and try to increase the amount of funds you transfer over time.
A person’s income is determined by the amount of value he/she creates multiplied by the time he spends creating value multiplied by the scalability factor. Formula for Increasing your income
INCOME = VALUE x TIME x SCALABILITY
4) Create Multiple streams of income
One of the most common strategies used by wealthy people is to create multiple streams of income. The main benefit of creating multiple streams of income is that they leverage existing resources and require less work to operate. However, one must be aware of the potential traps that multiple income streams present. For example, purchasing rental properties can pose headaches and stress, as well as the looming bubble. This is why it is recommended to start with one income stream, and then build the other one as it develops.
Developing a passive income stream may be the most challenging part of creating multiple streams of revenue. However, if you choose a passion, you will have more motivation and drive to grow your business. By systematizing your first source of income, you’ll build foundational skills and abilities that will enable you to build additional streams of income. In the long run, you may even be able to quit your day job with multiple streams of income. While this may take time in the beginning, the rewards will be great and can help you build your net worth exponentially.
5) Managing your money & controlling expenses
Managing your money and controlling expenses is an essential skill to build wealth. Most people spend their money without thought or rhyme, but a wealthier mindset allows you to allocate your finances in a wiser manner. Rather than focusing on what you can afford to spend, consider where you can invest your money. Then, make your decisions based on your tax status and how much you can save. This approach will give you a more accurate view of your overall wealth and allow you to plan more effectively how to divide it.
Having a financial plan and sticking to it will give you the ability to make important financial decisions. A strong financial plan will help you avoid debt and lead you to financial freedom. By managing your money, you can afford to fulfill your family’s basic needs, create security for yourself and your family, and live a life free of financial stress. By taking the time to develop a personal financial plan, you can create wealth and achieve financial freedom.
6) Build a million dollar stock growth portfolio
When it comes to creating wealth, investing in financial markets is the best long-term plan. Most investors wonder how long it will take to build a million-dollar stock growth portfolio. Historically, the S&P 500, which tracks the performance of the largest US companies, has returned 9.25% per year between 1928 and 1966. This was followed by an increase to 11% in 1967 and a drop to 7.1% between 2007 and 2018.
While investing in the stock market can make you a millionaire, you must be patient and disciplined. Achieving success in this area of the market takes time, and if you start small, you can achieve massive wealth over a long period of time. It’s important to keep some emergency cash aside in case you run out of money or need to use it for some emergency. By diversifying your investments, you can create a multi-million-dollar portfolio in no time. Achieving mediocrity is fairly easy, however if you want to make the most out of your time & money you have to get the highest possible returns targeted between 15%-25% per year. This is the strategy of picking a winning portfolio of ten to twelve individual stocks. While this is highly risky to most people who don’t understand the business behind the stock, you are going to learn specifically how master investors like Warren Buffett employ this strategy in a low risk and very high return manner. I have personally achieved an average of 22% return a year from building my own portfolio.
7) Build a million dollar real estate portfolio
Real estate is a great way to create wealth, but you have to be careful. It’s very important to research the market before investing. You also need a minimum down payment of 20%. Luckily, technology has made this process very simple. You can buy a low-cost property outside of your city, or work from home using a local real estate team. You can use leverage and financing to buy multiple properties and spread the risk.
The key to creating wealth in real estate is to be patient and consistent. It’s easy to get discouraged if you’re only investing a small portion of your money. Fortunately, you can avoid that if you use the methods described here. By following the steps, you can build a real estate portfolio with multiple streams of income and a million-dollar goal. Just don’t forget to invest your time, and have a great team!
8) Protect your Net Worth
Developing a wealth plan includes saving, investing, and paying off debt. Developing your plan requires protecting your assets and creating a ‘trust but verify’ process. You must know where your assets are held and where they are not. Avoid putting all your assets in one place. You should be able to see each account. It is crucial to avoid making impulse purchases and avoid spending beyond your means. Listed below are some tips to help you protect your net worth when creating wealth.
Start by setting targets for your net worth. Make sure that each element is contributing to your goals. You may want to focus on increasing your net worth, saving more money, or investing more. You may also want to reduce your debt, depending on your current financial situation. Remember that your ultimate goal is to be able to meet your financial needs, not your debt. Identifying your net worth will help you to stay focused and take action.
There are in Total 8 Steps you need to achieve in order to be in the Top 1% of wealthy people, because there is so much stuff to learn, we cannot compile everything into a article, so, to cut short your learning curve, join our Personal Wealth Creation Program, and we will teach you every step.
Join The Personal Wealth Creation (PWC)™ – Launching (50% Discount)
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On the Personal Wealth Creation, you will learn:
- Beliefs of The Multi-Millionaires
- How the Wealthy Manage their Money
- How to Increase Your Income
- How to Manage your Money & Reduce Your Expenses by 20-35%
- How to Build a Fortune by just Investing 15% of Your Income
- How to Design Your Millionaire Master Plan
- And Much More…