How To Create Wealth

How to Create Wealth

Although many may not admit it, most of us desire to be rich. We want to create wealth and not have to depend on ourselves or anyone else to live comfortably. How to create wealth is the stumbling block that holds us back.

That being said, our perception of "comfortably" is what seperates the wealthy from the middle class. If you want to increase your financial intelligence and create true wealth for your family, you must organize, plan and take action.

MUST HAVES:

A Burning Desire - It's one thing to say you desire to be wealthy, but it's another to be driven by your desire.

Specialized Knowledge - organizing and using your knowledge with a definite plan of action.

Call to Action - Once you are organized , you must put your plan in action with a consistent effort.

WHAT IT TAKES:

Conditioning of your mind – You are where you are today without accident. Your mental conditioning is inherent. In order to prepare yourself for the future you must prepare your mind with mental conditioning.

Change of habits – You have habits now, good and bad. If you want to change your life, you have to change your habits.

A solid foundation – to create true wealth you must create a solid foundation. A solid foundation means protection, savings and growth.

Consistent effort and attention to detail – A consistent effort to improve and attention to detail are essential for long-term growth.

ACTION STEPS:

Organize Your Financial Filing Cabinetr
What does it look like now? Do you have a financial junk drawer?
Create a Filing System (Organize by date and kind)
• Insurance Statements
• Bank Statements
• Investment Account Statements
• Credit Card Statements
• Expenses
• Phone, Utilities
• Business Entity Documents
• Real Estate Documents
• Wills and Trusts

Open Your Wealth Accumulation Account
• Money Market or similar with EFT options
• Deposit at least 10% EVERY time you get paid

Create Your Income Statement
• Balance Sheet
• Income and Expenses
• Cash-Flow

TIPS:

Have an emergency fund - Have at least 6 months' income in a money market account that can be accessed easily.

Pay yourself first - Start a systematic savings plan. Discipline yourself to save 10-20% of your pre-tax income into a wealth accumulation account.

Spend less than you earn – This may seem obvious, but discipline is key here.

Pay your bills on time - Avoid needless late fees.

Avoid debt to the highest extent possible - Student loans and mortgages can be "good debt", Use “tax advantaged” liabilities whenever possible. But, make paying them off a priority.

Set a budget - live by it, use a software program or just a paper and pencil.
A consistent effort is needed to preserve wealth once it is created. "Easy come, easy go" is relevent here. A continuous curriculum of financial education will create confidence, success and happiness.

Start your journey of creating wealth today by acting now. Procrastination can substantially affect your ability to create wealth. Act now!

Until next time,
Barry Page, RFC
Registered Financial Consultant