INTRODUCTION
Building wealth is most often a chronic process, which includes vision, persistence, luck and a ton of things for all different persons out there. There has never been a set of formula to get wealthy and I don’t think there will be, in depth it is always a personal story. Yet we can gain few little new ways of understating to look at this perspective with more clarity. Let me give you a disclaimer that I’m not an wealthy person by now nor I came from an wealthy background but I believe I have something special for you mainly if you are finance obsessed person. Let’s start to discover.
THE 7 SECRET CHAPTERS
Beliefs around the wealth
Beliefs, values and overall mindset matters to build a powerful foundation around wealth. Certain beliefs could be such as prioritize assets against liabilities, liabilities are simply which takes money out of your pocket and assets are those, which creates money for you. Without assets it is impossible to make wealth unless inheritance or few other sources. Never celebrate capital, your loans should be for only education, strong businesses or medical emergency that’s it.
In today’s time people easily take loans for minimal things like phone or watch so on. Your loan could make sense if you have the capital, which makes businesses. If you are getting loan at 8% and your significant funds make around 11% then it could make senses because you are having profit of 3% even after the loan expenses.
Transformation of peers
Learning to nurture strong relationship. You can never get money out of nowhere, it’s always a person, people or group of people who pays the money to you directly or indirectly. So nurturing relationship with these people is significantly crucial. If you have peers who does not make you feel competitive, jealous or insecure (In healthy way) then you need to change peer groups, this will help us to make ourselves more challenging.
Valuable peer group will give more powerful insights and strong opportunities moreover it will give a powerful network. This people will always elevate your skills. Because as we all are aware of “You are the average of the five people you spend time with” so if the peers are strong you will be as well.
Avoid celebrating capital either debt or equity
In today’s time if a start-up gets funding, most of them celebrate that capital that now they are valued at certain valuation. A capital funded by few groups of investors is more of a responsibility than capital to celebrate because the funding came for a reason of profitability and scalability. Even in the case of debt it’s always responsibility rather than capital to celebrate. I had a statement around loan, a loan should always be used for either education, strong businesses and medical emergency. Always avoid taking capital for you wants like purchasing a bike or phone or others. Taking a loan will make sense if your giving is 9% and your funds having creates 12% or something like that.
Becoming Eligible to Receive Opportunity
The people who are in A grade they will never sit with a C grade person unless you have something really significant to represent. The most important criteria are mindset, if mindset we can’t match with them, they won’t find the vibes to be with us. The time they entertain you, it’s the time when you match the vibe and have something to put on table. It could be anything such as skills, dreams, your struggles anything that energies them.
We need to have a strong and ethics full of character, which will strengthen our self-value. This way sooner or later this strong network will give us opportunities to execute and grow. You can get a business deal, good position to work or funding for your business etc.
Converting Opportunity into multiple Assets
Now once you get the opportunity from these people, it’s time to convert these opportunities into assets. This time you would build royalties, future contracts, patents, getting stakes etc. These are powerful passive sources of the income. This helps grow us in a massive pace. It’s the time, when we make money even while we sleep, we see strong portfolio of positive cashflows, here you will have to manage various portfolio just to manage your finances not even your businesses. Your business is a different horizon that is about active although when it gets bigger everything becomes passive.
Prioritizing passive cash flow more against active
Passive income is one of the most powerful things one can utilize, while creating a significant net worth. Most middle-class people do not prioritize the passive income. Creating an asset portfolio might be one of first steps like building a portfolio of stock. Buying a real estate, which gives you returns is also passive cash flow. Creating royalties can also help you to build passive cash flow. Investing on personal brand can also create passive income.
There are many ways we can create a portfolio of passive cash flow, for that I will suggest to read two books as a beginner 1st “Rich Dad Poor Dad” 2nd “Phycology of Money” this will help a lot to create a fundamental base of mindset to create passive income.
Either build your own empire or own certain equity
Now this is the time we already built various portfolio of passive income. By utilizing this income portfolio either we can create our own empire or we can own some equity in public empires/private organization. Building your own business can help you take real advantage of human leverage, this way you would utilizing a group of people’s time, energy, efforts to build something which you want. In the case of owning equity you would be doing capital leveraging, which will help you to create a ginormous wealth because of compounding.
VERDICT
Building wealth is never about a set of formula, it’s always a personal story, a mix of mindset, opportunity, persistence. The insights i’v shared you on this article is to help to look at your financial journey in new way, which will help you drastically. In verdict all i will say that we need make a clear goal and we need be with quality networks as it says ” you are the average of the five people you spent time with” Hope you learned something, which you might utilize your life.
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