Summary
We’re all in a hurry to get to big wealth. But there’s only so much to be gained by daydreaming and thinking about the end result. The truth is that wealth is not an event that hits you out of the blue, as much as the lottery players out there would like to believe. Wealth is a process.
You might aim to get there sooner or be content to ride out a strategy for the long haul – but you will need a process in place. I have experimented myself with short-term and long-term tactics that have helped me to reach my finance goals. They both have their advantages and disadvantages, but the important thing is to get started! Read on to learn more about how to set up a process to help you begin to live the life you want.
Transcript
Many of us dream of it. That big day that big influx of cash hits the bank account and you add another comma to your net worth. It’s an event that’s fun to daydream about.
But by and large, wealth isn’t a matter of events. It’s about process. It’s about the habits you execute over and over again to hit your goals. And it’s about following a plan.
What’s your plan?
Do you have a blueprint in mind to reach that extra comma? Do you have an idea for how you can accrue a multi-million dollar net worth in the next three to seven years?
For far too many of us, that plan includes the word “lottery”. In Canada, one of the largest banks, the Bank of Montreal, conducted a survey that found that as many as 30% of the population was actually banking on a lottery win to play a major role in their retirement plans.
Friends, building wealth does not, and should not, need to be considered a divinely inspired event that you can only hope and pray to happen at some point in your life. It’s like building a car, success and wealth can be condensed into a sequential chain of events that you choose and that you control.
What’s Your Pace?
I personally have two methods that I call the “get rich slow” and the “get rich fast” methods. Anyone can get rich slowly with a proper plan. Much of it involves setting aside extra income that you create and turning it into passive income, most often with real estate. Most of us know that if we truly set aside the right type of discipline, we can get there.
But the fast past is just as attainable. We hear “get rich quick” and we sometimes think that a ruse is being pulled on us. But the reality is that you can enjoy wealth before old age. It simply involves a bit of creative thinking, getting some extra income and putting it to work for you, rather than just trading your time away for it.
Ownership Is Essential
That’s why your plan should involve sources of income beyond a salary. You can only make so much when you’re dependent on a time sheet, there’s only so much time in the day. The path forward that you need involves becoming an owner and buying assets. Your plan should very likely include ownership, owning real estate and owning a business as a means of increasing your personal cash flow.
When you look around, there’s a whole world of opportunity made possible by technology, allowing ordinary people a shot at building significant wealth like never before. Web services, drones, the Internet of Things, autonomous cars, robotics, apps, 3D printing; imagine all of the new goods and services growing out of the emerging technology we’re seeing. A few months ago, who would have anticipated that virtual reality games like the Pokemon app would be setting Nintendo’s stock afire? It’s impossible to have a crystal ball when it comes to market developments, but you can prime yourself for opportunity by continuing to learn and engage with new technologies and businesses. Look forward to the future, not back.
What’s important is that you decide for yourself early on which track works for you. Are you more comfortable with going slow and steady to accrue wealth? Or do you want to achieve Wealth Freedom fast? I would define that as being in between three to seven years.
I’ll admit it’s a bit of a trick question, these paths aren’t mutually exclusive. You might build the strongest portfolio possible by actually doing both. And that’s what I suggest, doing both.
Get Real
I have certainly done both in my time. You should build long-term equity in your home or other properties that you hold onto for passive cash flow. But I also know what it’s like to have the thrill of house flipping and high-stakes real estate. It takes a lot of hustle and some risk, but the payouts can be unbelievable. That said, you must know how to do without leveraging yourself, a topic for another time.
For your safety net approach, look at buying a modest home or condo that will provide rental income. Over time your tenant will be on paying off the mortgage to free up your cash flow to become the income you live on. In the meantime, you are also picking up additional properties to rent out.
I encourage you to seek out mentors who can help guide you based on their practical experience. There’s no need to make the same mistakes that others have made if you can avoid it, so soak up their experiences like a sponge. I often introduce people to the experts I know, that give quality information that will set you on the correct path for success.
Take Stock
In addition to real estate, another part of your process will likely involve the stock market. But there is more risk and knowledge required. I don’t suggest this for everyone. I personally follow a small number of excellent and impartial newsletters which provide me with expert information to help make the most of the ups and downs of the market. As in any endeavor, having the right mentors and guides can shave many years off your journey to wealth.
The important thing when you’re working with any type of advisor is to do your homework on their track record and results. Not just over the last year but over the course of market fluctuations throughout the long haul.
Of course, investing in real estate and stocks alike requires that you have some cash flow of disposable income. For those of us whose primary skill sets aren’t in investing and real estate, these activities should be seen as complementary ways to build upon. They preserve wealth that we accrue by pursuing the skills and subjects that we’re most passionate about or have the best aptitude for. Some might be skeptical that you actually can generate cash in the short-term that can make available for investing.
What you should understand is that there is substantial money to be made with the power of technology by helping and serving a large number of people. Our culture often demonizes the wealthy, but I’ve long believed that your wealth is often an illustration of how many people you’re affecting and helping. Whether you are branding yourself as a trusted expert, setting up a website with affiliate marketing revenue streams, or developing a new product, the sky is truly the limit. Don’t limit your thinking. The most successful people tend to try more things and to incorporate all of them into their process. By thinking of your wealth generation as a journey not a destination, you can make your career into a great adventure and have a good time along the way creating value for others.
You can start by deciding what your time horizon is for your goals, whether you want to emphasize short-term or long-term gains. Then spend some time thinking about the pillars of your wealth process. Real estate should be a cornerstone for long-term passive cash flow. But also consider what value you can create to generate cash flow that will allow you to jump on investment opportunities and create your Wealth Freedom. This may seem overwhelming at the beginning, but you can systemize your wealth and cash flow creation. It may start small, but will grow exponentially over time. So take action and get started making your own personal wealth creation plan today.
You can also learn more by visiting my website: tonyneumeyer.com and registering to receive free trainings articles and more. Also subscribe to my YouTube channel and follow me on Facebook. You can get your copy of The 7 Minute Millionaire and check out my other books at https://tonyneumeyer.com/books/.
