What does wealth mean to you? Salary? Lifestyle? Money?
Most people are too busy with bill bills life, bills, life and some more bills. Our everyday existance has become a long slog at work to return home at night in order to pay our bills to keep us going.
Wealth is truely more than money- Money is the vehicle to allow us to do the things we like! Money in itself can make you rich. But here is a poser- when you earn more money, you tend to be able to spend it on more expensive things- but as these things cost you more you end up with the same thing- less money as your spending it. Therefore your path to true wealth should not rely purely on a job or salary- where you trade your time for money.
When you work for a company as an employee remember one key thing- They are paying you the bare minimum to keep you- they wont say oh that John Self he is a good guy lets pay him £50k more.
As I see it there are 3 main levels of financial evolution-
1) Pay Check Existence
This is where the majority of brits and the rest of the western world live. Main source of income= You bet, thier J.O.B.’s. Here you get paid for working the 9-5 (longer if your lucky 😉 )You hope your money lasts the month/2 weeks/ week that your paid for untill you get that golden paycheck- Here, another one of my NLHWH GEMS- Buy relying on this you get so dependent on it it makes you believe that work is the only way to create income, if you lost your job how would you cope????? What happens when that golden paycheck doesnt arrive??
Trouble is these people are usually scared as they have spent all of their money and Mr Mastercard/Visa comes into play-we can put it on the good ole credit card. We wont have to pay later. This adds to the building snowball of debt- but dont worry that paycheck should arrive……. soon
2) Passive Income
The Next tier is one that over 90% of the world miss out on- so if this is you congratulations your in the top 10% of the global population! You have heard that 10% of the world control 90% of the wealth??
Here money is earned passively- so that you earn money whether you want to or not! So go to bed, earn some money. Mainstream sources of this are shares, property, businesses, royalties etc.
What is important here is to get out of the mindset that the only way to bring in money is through a job! Imagine going to bed and waking up richer, not having to do the commute to work but stay in bed, spend time with the family, doing things you want.
So very few people get to this level and this is for many reasons- too many for this post, but into that basket go mindset, fear, unclear goals, poor education (financial) .
This stage is where you have enough learn you can lead the lifestyle you want. There is no magical number here, it can be as extravagant or as frugal as you like. Warren Buffet lived in the same house in the central Dundee neighborhood of Omaha that he bought in 1958 for $31,500!! He is possibly one of the biggest wealth creators of the modern age yet lives a fairly frugal lifestyle.
This does not have to be you- at this level you will have invested carefully, created multiple streams of income and therefore you can do as you please! People like Bill Gates, Michael Yardney all have massive learns but also spend their money on what they want- Michael Yardney travels the globe, Jamie McIntyre has an amazing waterfront property in one of the most sought after areas in Australia along with a huge country retreat in country New South Wales.
My questions for you
* What level of financial evolution are you in?
* Do you live beyond your means?
* How many investments do you have?
* Where does your income from?
* How financially educated are you?
Happy wealth creation