Wealth is not a linear path.
Each one of us has our own definition of wealth because wealth isn’t about being rich – it’s about being fulfilled, having the power of choice, and the freedom of time. If wealth was measured in money then it’d be a simple answer: whoever has the most money would be the wealthiest. But, the truth is often more complicated.
I know people who make $40,000 a year and they’re incredibly fulfilled and happy individuals. On the other hand, I also know millionaires who are miserable in their lives. Needless to say, the amount of money you have is not an indication of your wealth.
The best way to begin building wealth is to define what wealth looks like for you and your family. What are the things you value, and how much time do you need to feel fulfilled?
To build wealth, you need clarity. Ask yourself, what does wealth mean to me?
Wealth Requires a Foundation
Wealth creation requires a foundation because there are fundamental pillars you need to have in place so you can build from those pillars. I call these the 5 COREs Principle.
The 5 COREs are:
- Banking
- Credit
- Debt
- Investment
- Insurance
I chose these 5 areas because it’s applicable whether you’re an entrepreneur or a working professional. Once you have these 5 areas in place (the fundamental pillars or building blocks as I like to call them), you can then start building on top of your foundation.
For example if you prefer more protection, you can leverage insurance policies or if you’re comfortable with higher risk but larger rewards, you can focus on investments.
Again, it goes back to clarity. What does wealth mean to you and WHY do you want it? Reverse the plan from your why and then look to what are the foundations I need to have. Almost every single goal when it comes to wealth creation WILL require you to level up your financial literacy game. Knowledge is power. Learning to use that knowledge for yourself is called leverage.
Before you think about a million dollars, think about each of your dollars. Each cent can make a difference when you put compound interest into the picture. Remember, if you don’t know the value of a dollar, you will never appreciate a million.
Before you think about retirement, think about your foundation. We can help you get there.
How does financial literacy impact society? (It equals the balance)
Do you ever wonder what the world would look like if the 99% had access to the same knowledge as the 1% elites of the world?
Well…. You kind of do. It’s just mixed into some extremely confusing and convoluted jargon. As much as I hate to say it, the rich do oftentimes prey on the 99% because they’re scared that if we ever get the knowledge, we’ll be able to use it against them.
But here’s the thing, I think it’ll equal and redistribute balance into the world. There is a difference of course from $40,000K/yr to $1,000,000/yr, but WHAT is that difference apart from more money?
Assets, mindset, and leverage. That’s pretty much it.
What if, at 40K a year, you started to practice the same principles as having a million dollars? And you learn how to grow $1 – $100 and then that $100 – $1,000? We all think we want a million dollars without leveling up ourselves, but the truth is, if you received a million dollars, 90% of you would lose it within the first few years due to mismanagement.
So wealth is NEVER about the amount of money you have but rather it is: the assets (things you own that make your money), mindset (how you think about money), and leverage (how to make MORE money with your assets and capital, NOT your time).
Do financial literacy courses work?
Most financial literacy courses will teach you the basics and some will go on to show you how to apply those basic principles for yourself, but not many will have an environment to continue that conversation afterwards.
Your environment is crucial to your growth and your success, which is why we’ve created a specific group for wealth creation and a safe, judgement-free space to have these conversations. If wealth creation is on your radar, this group IS the place to be.
Join us on Facebook (Financial Literacy for the 99%) where you can grow with other individuals on the same journey as you. See you there!
