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Why is wealth important?

If you want to never stop working hard and make lots of money, wealth is an irrelevant topic. But if you want to actually buy back some time and freedom in your life, that’s where wealth creation comes in. 

Before we dive in, let’s talk about the distinction of choice. Financial literacy is available on the internet today. Not tomorrow, a month, or a year from now. If you want to take matters into your own hands, you can access the same knowledge that millionaires and billionaires have right now. 

The truth is, you don’t need me or some other wealth money coach to tell you anything more than to simply Google what you’re looking for. You can search how to make a chocolate chip cookie and you’ll get thousands of results back with a list of the exact recipes you need. But you’ll still need to do the work to make that cookie. 

There are thousands of resources out there on how to create wealth. But there’s a reason why some people don’t start. It’s not a question of “how” but rather, what’s stopping you? And what’s stopping most people from attaining financial freedom? 

It’s simple – choice. 

Sure, I’m acknowledging that there is information overload and confusion, contradicting information, and a lot of wrong information, but if you’re committed and you cross reference your sources, I’m sure you’ll get there. So again, why are MORE people taking advantage of this “free resource”?

Free doesn’t actually exist. You can do free searches but you pay for that with one of your most valuable resources that not even billionaires can buy back – time. 

Most people don’t understand the value of time, or it’s misinterpreted. So why is wealth important? Because real wealth (not rich) buys you freedom and time!

Wealth is a mindset, and it’s one not often found among working professionals or even entrepreneurs. It’s not quite the same as running a business because, in business, it’s more about how to generate sustainable revenue and then scaling your team.

When it comes to wealth, it’s not so much about getting more money, but rather how to leverage the resources you already have to do the heavy lifting for you. 

You can be rich and work very hard for your money, or you can choose wealth, lay your foundation, and make your money work for you

Why Is Wealth MORE Important Than Income?

Too many people confuse wealth with being rich. Being rich means you have a lot of money, but having wealth means you have created the freedom and time for yourself. Essentially, wealth provides you with the things that money can’t buy if you stopped working.

Your income is determined by an exchange of value. Meaning, you get paid a certain amount based on the work you produce. This amount you get paid, your income, is determined by how much someone else thinks you are worth. Entrepreneurs have it slightly better because they get to say how much their time is worth but, ultimately, your time is priceless. 

When you focus solely on your income, you’ll never create wealth. Wealth requires a foundation, and you have to be intentional when laying your foundation or no amount of income will ever be enough for you.

Is Income Part Of Wealth?

100% yes! Now, let’s clear something up. Your income is a PART of your wealth. However, there are different types of income. The one we mentioned above is specific to earned income. Meaning, you’re exchanging your time for money. Even if you have multiple streams of income, say you’ve got a job and some side hustles, all those are still under the earned income category. 

There Are 7 Different Types Of Income:

  • Earned
  • Profit
  • Dividends
  • Capital Gains
  • Interest
  • Rental
  • Royalty

90% of millionaires have at least four to help them build wealth. The most common incomes are earned, profit, dividend, and rental. Profit income comes from your business earnings, earned income is what you pay yourself, dividend is through investments, and rental is through real estate. Each of these income types are taxed differently and each serves a different purpose. For example:

  • Real estate offers more protection so it’s a great investment vehicle to shelter your assets
  • Dividend and capital gain income comes from your investments generally in the stock market
  • Royalty comes from products or other assets that you own – think musicians, or software you use as a subscription service
  • Interest income can be as simple as the bank paying you monthly interest from the money you’ve saved 

By the way, if you still have all your savings in a regular basic savings account, please go read this article and find out why you’re losing money every single day. Interest income is often forgotten because it may not make much of a difference when you’ve got $500 or $1,000. However, when you’re looking at numbers in the millions range where 1% of a million is $10,000, that 1%-2% can make a big difference in your earnings. 

What Is The Difference Between Wealth And Assets?

Earlier, we talked about real wealth as leveraging the resources you already have to do the heavy lifting for you. Those “resources” are your assets and I’m going to give you the secret or “spill the tea” – listen up…… the 1% of elites use their money to buy assets and then leverage those assets to do the work FOR them so they can enjoy their time however they choose. 

Trust me when I say that no wealthy person ever got there by hoarding onto their money. Because money is worthless when it’s not put to use. It’s like going to the grocery store but refusing to buy anything because you can’t part with your money but at the same time, you’re starving. That’s the image I want you to picture everytime you hesitate when buying an asset. 

This is where the “foundation” that I keep talking about comes in. You lay your foundation for wealth by using building blocks in sequence or what I call the 5 COREs Principle (grab your copy of the free ebook here) because again, money is a currency. You can either hold onto it and watch it lose its value (because it always will – you can thank inflation for that) OR you can create some cashflow by buying assets to create wealth. 

So How Important Is Wealth? 

Well, you get to choose and define that for yourself. How important is having time and freedom for you in your life? What I’ve learned through my work is that we are all different, each one of us, and it’s okay for some of us to choose our 9-5s and enjoy our life as is. In fact, there’s actually NOTHING wrong with that. 

But if you feel like you want more time or freedom, or simply just want to do MORE with your money, we teach the 5 COREs Principle and help our students create a personalized roadmap to jump start their wealth journey. And we can help you get there faster by cutting through the noise and information overload. 

With that said, the actions you choose to take towards building your wealth is not a choice I can make for you. The very distinction of choice means that YOU, and you alone, have the power to create what you want in life. 

And if you want wealth, you know where to find me. 

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