Building Wealth Is Really Simple, but not necessarily easy. All you have to do is create and purchase assets that increase your income while also keeping your expenses in check.
How Do You Create & Purchase Assets
To increase your income, you only have to focus on 3 areas. And I suggest picking 1 and mastering it before expanding to another. The 3 areas are:
- Real Estate
You can significantly increase your income by focusing on any of the 3 areas. However, to see the best results you should pick one of those areas and study and apply the information to increase your income and wealth.
Many people want to increase their income and wealth and think getting another job is going to help. While getting a higher paying job can technically increase your income, the problem is you’re still trading time for money and creating value for someone else.
A job is not meant for you to generate wealth, it’s meant to keep you one misstep away from financial disaster. It’s extremely hard to create a large income and wealth from a job.
Instead, focus on creating a business, purchasing real estate, and buying stocks. These types of assets are going to make you wealthy.
How Do You Keep Your Expenses In Check
Once your assets start to produce income for you, you’re most likely going to have the urge to spend more money. Now, I’m not saying to not spend any of the increase in income you’re going to be receiving.
Instead, resist the urge to spend all of your increase in income and not have any left over to invest. When building wealth, you have to have a significant portion of your income that can be invested.
If you’re spending the entire increase, then you’re not really building any wealth. Increase your spending at a rate lower than your increase in income.
For example, lets say you start a business and your income goes from $5,000 per month to $10,000 per month. This doesn’t mean you should increase your spending from $2,500 to $7,500 per month.
A better way to do it is to increase your spending in a smaller increment. So, if your income doubles, increase your spending by a quarter. It would look something like this:
- Income: $5,000 –> $10,000 per month
- Expenses: $2,500 –> $3,125 per month
This way, the more money you make the larger amount of money you are able to invest. Ideally, you want to get to the point where your expenses are tiny in comparison to your income. So, if you want a $100,000 per year lifestyle, your income is $1 million per year.
Thanks for reading Building Wealth Is Really Simple. For business ideas, download our free guide here: 25 Six Figure Businesses You Can Start Today.