| We all wonder about the secret to accumulating wealth, don't we? The truth is, it's not hidden in complicated formulas or exclusive strategies. Let me break it down for you in the simplest terms. |  |
The Simple Formula: Earning More Than You Spend
The ultimate key to wealth is straightforward – earn more than you spend. It sounds almost too simple, but it's a fundamental principle. Imagine having a leaky bucket (your spending) and a tap (your earnings). If your tap pours in more water than the bucket leaks, you'll accumulate water (wealth).Make up your mind that you are going to be honest in all your dealings even if it cost you money. Your reputation is everything… the money will always come back faster to an honest person.
Invest in yourself and not so much in the stock market.
Save until you can purchase an investment property. If you can't save fast enough, find a partner to invest with.
Let the tenant in the property pay your mortgage off for you as you collect rental income.
Start your own small business. Buy the real estate your business can use as rapidly as you can. Let your business pay for the real estate. Sell the business, finance a portion of it, and give the new owner of the business a long-term lease so the rental income from them will pay your building off for you. Theoretically, while the balance you owe on your property is being reduced each month, the property is also appreciating in value annually.
Never depend on the stock market, some illusive CRYPTOCURRENCY SCAM or Forex Trading Shills to make you wealthy. The first sign of a low-IQ person who will never get wealthy? He’s looking for a short-cut. He’s looking for something that will make him wealthy without mastering skills. Dumb. Just dumb.
If during any time you are not buying additional properties, pay additional funds towards your principal balances to reduce your debt faster.
If you buy and hold your investment properties, you should have adequate cash flow for your retirement years… all your properties could be paid off within 20 years of purchase dates.
As a general rule, buy assets that appreciate in value, instead of wasting money on depreciating assets.
There are great tax advantages to owning your own business as well as owning investment properties.
Hire a good CPA firm that will council on some of your business and investment decisions as well as help you plan for retirement. That's part of investing in yourself.
Don’t live too big, but occasionally you'll want to reward yourself for your larger successes as a motivational tool for your future success.
Buy quality, rather than quantity…I’d rather invest in one quality Rolex watch that tends to appreciate in value over time, rather than thirty less expensive watches that will all depreciate in value and will eventually be tossed away.
Realize what your time is worth: I can pay someone to mow my yard for less than it would cost me in time, aggravation, and effort. While it may be good exercise, there is always the risk of injury. I can invest that same amount of time making more than enough money to cover the expenses of a yard service with zero risk of being injured and without breaking a sweat. Time truly is money…invest it wisely.
Don't marry for money. Money can come and go. Love and family can be there forever. Marry for love. Find a supportive companion and the money can come later.
Prioritize your time. Make time to help those that are less fortunate than yourself. Be a mentor.
Provide Value: The market doesn't give a damn about your due rent or medical problems. You will get paid in proportion to the value you provide.
The Compound Effect
The magic happens when your savings start earning, and those earnings also start earning. It's like a snowball effect, growing larger as it rolls. This phenomenon is called compounding, and it's a powerful force in building wealth.The greatest secret of wealth isn't a complex code; it's a simple formula of earning more than you spend and putting your savings to work through smart investments. It's a journey anyone can embark on, and the earlier you start, the more significant the results.
Remember, wealth-building is a marathon, not a sprint.
Embrace the simplicity of this secret, take small steps, and watch your
financial well-being flourish over time.
