7 Steps to Create More Financial Success in Life- Day 6
6. Apply the proven wealth principle
I have seen so many people skip this step and focus on just one thing to help them build wealth. The principle is just the same thing. Let’s say you want to get healthy, how do you maintain your overall health? Do you just do one thing? Do you just exercise? Or do you just eat healthily? No, you don’t.
It’s the same thing with building wealth. It’s not just about one thing – real estate, bitcoin, or stocks. It’s about strategy and principle. In getting healthy, you need a complete strategy. You have to exercise, eat healthily and take care of your body.
In wealth creation, many people forget the principle and I believe that there’s 3 we need to remember:
1. Taxes
How many of you really pay attention to taxes? Do you apply the tax principles when investing? It’s not about how much money you make that matters, but how much you can keep in your bank account.
Taxes are often overlooked and most of the time could cost you more. This is one of the areas I focus on the most when working with my clients.
When you look at your portfolio, you may be earning millions but how much do you actually get after taxes? You work hard to earn your money but what if one day, the government decides to raise the tax brackets? How much would you have left?
2. Risk
We are all familiar with the risks in investing. Markets can crash and you can lose your money, but as soon as the markets go back up we tend to forget what we went through when it crashed.
I always model success to what Warren Buffet said – when it comes to investments, always follow 2 rules:1. Never lose money2. Never forget rule number 1We all know this, but how many of you are actually applying this?
3. Liquidity
Liquidity is how fast you can have access to your money.
I used to have all my assets in real estate and as a real estate investor, there was this one common thief and it’s called “asset rich but cash flow poor”. I was one of those investors.
In the books, we had millions invested but it takes years to get the returns. So how do you solve the problem? What I did was diversified my portfolio. I created my principal-protected investment and that acted as my bank where I could borrow money if I really needed it.
If you want to learn more about these topics that I am talking about, every Tuesday, I host a free workshop to teach people about the principle of investing. Let’s go a little bit deeper and discuss how to grow your finances.
This happens every Tuesday at 7PM CST, just go to https://www.ahfmasterclass.com to register and know more!
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