The No Nonsense Approach To Building Wealth
The problem with money is that our society often thinks of it all wrong. It is hard to learn the truth because we often learn from our parents and they learn from their parents, and the school system has no interest in helping us learn about money either. Moreover, everyone around us is selling an idea about money that rich people simply don’t follow. Wealth is built on an entirely different set of rules than what society typically follows.
Get Rich Slow
I hate to break this to you, but this is not going to be an article about how you can get rich, marry someone hot and retire on a beach. Wealth building is a slow process. Warren Buffet started investing when he was seven years old; Bill Gates spent ten years in isolation working hard on Microsoft. We never hear about these stories though because no one cares about people until they are a massive success.
We live in a society of getting things on demand. As a matter of fact, the book can be sent to your Kindle right away, you can binge watch the entire season of a show, the internet is as fast as ever, we can microwave our food, and it all happens on demand. The problem with this way of living is that wealth is best built slowly over an extended period of time. Get this in your head now, if you do it quickly then so be it but you likely will not get rich fast at all.
Keep Your Overhead Low
My second mentor lived in a tiny house, and it was confusing to me. When I finally flew to Austin, Texas to meet him, I was excited to see the massive house and nice cars, and he had none of it.
He told me why would he spend all that money on a house when he can take that money and put it into other investments that will make him 10% per year. In fact, I noticed that many successful people thought this way. They always understood that they needed to spend their money at the right time, and the time was not now!
Are you keeping your overhead low? Wealth is not buying the biggest house and the fastest cars. Those people appear rich, but under the hood, they are often struggling to keep up with their bills. The truly wealthy people are hard to point out in a crowd because they are prudent investors.
Learn Real Estate
My third mentor was a real estate mogul, but weirdly he needed my help building an online presence. He had no internet presence at all and often seemed like he had never used the internet, to be honest. I told him I would help him out if he mentored me and he showed me a whole new world.
I though real estate investing was buying houses and either flipping them or renting them out. My mentor was doing neither. He was buying houses and turning them into group homes. Instead of renting houses out to a single-family he would make double or triple the money each month by renting out by the bed and having three beds per room. It was insane the money he was making doing this.
He showed me how once he built up this wealth, he started providing the actual financing for people to get homes. Now, this had my head spinning because was the bank. He directed me to this website and course and continued to teach me.
I realized while I was learning that real estate has created the most millionaires in the USA. When I say, you need to learn real estate that is the reason why. It builds real wealth, and there are more ways to make money than many realize.
Throw Away The Basic Savings Account
Savings accounts are deemed to be these safe places but they make no sense when you do the math. We don’t invest anywhere else because we think it is a risk to do so when the reality is that the risk is in NOT investing elsewhere. These savings accounts come with a horrible interest rate that does not even keep up with inflation. They just do not make sense so please do not do it.
Wealthy people DO NOT hold their money in a savings account with hopes of the money growing. They all understand savings accounts are a failing strategy, and they do not make your money work for you.
Learn The Stock Market
There are two reasons you need to learn the stock market. The first being that markets on average increase 9%/10% per year, and the second are the fact that you learn a lot about business and numbers.
I meet people on a daily basis that are scared to invest and build wealth because they don’t understand numbers at all. The best thing you can do is take the time to learn. I started reading and learning from all the best investments books and courses that I could find.
I started to study these companies and pick my stocks that I thought would be a winner. It taught me to pay attention to details, move away from my emotion, and think with a long term mindset. All of these things are valuable skills to have!
Consumer to Collector
Which side of the fence are you on? Are you a consumer or are you a collector? The debtor will always be a slave to the lender! Choose your sides wisely. Look in any areas of life, and you will see a few collecting and the rest just consuming at rapid rates.
You will never build wealth until you shift from being a consumer to a collector. When you start a business, for example, it makes you shift over to a collector. People pay you for your service, and because you need the capital, you stop spending your money and you invest it back in your business.
When I started investing in group homes, I quickly realized it was the best investment I could ever make. What else could pay me $4200 per month? I was collecting from people instead of just being the one that had people collecting from me, and it feels great.
What Are You Going to Do?
Are you just going to continue screaming YOLO and living your life like there is no tomorrow? The thing I hate the most about motivation is that it only matters if you decide to change your life and do something about it. Right now as you read this, go and find yourself a mentor, buy a book that can teach you about building wealth! Take action and change your life for the positive.
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