One of the many goals I have for my financial prosperity is to build wealth. In fact, I am not sure if I have ever shared this publicly here on IEC but one of my financial goals is to be worth a million dollars by the time I am 35 years old and I am extremely passionate about this goal!
And, I get it! Not everyone aspires to build wealth in his or her life. You may be satisfied with building enough of an income to sustain your current standard of living, having adjusted for inflation – and that’s cool! Nothing wrong with that.
But if you are reading this and thinking to yourself that wanting to build wealth and wanting to have enough money is being greedy, than the first thing you require is to focus on is building a better relationship with money because frankly you’ll never be able to earn more money or build wealth if you feel guilty about having more.
This kind of mindset often arises in people who grew up poor or in a household where ‘there was never enough’ – something I experienced and a challenge I had to overcome, myself.
When you’ve conditioned yourself (unintentionally) for years to believe that there is never enough, doing something that contradicts that belief (ike starting a business) knocks your subconscious for a loop and does everything it can in its power to
operate from dominant program it knows best, which in this case is – money is bad and there is never enough, keeping you stuck in poor mode!
Is that something you have challenges with?
How Do You Build Wealth?
It was a long enough battle for me but I finally unsubscribed from that mindset about a year ago and it took me about another good year to re-wire my brain and undo the last 2 decades of ‘poor mindset’ conditioning – now it was time to learn how to build wealth!
On my quest to build wealth, here are some of the things I’ve learned thus far:
- - Why High Assets = Awesome Personal Financial Statement
- - The Importance of Establishing Passive Income Streams
- - Why You Should Pay Yourself First
Recently, and as a result of writing my very first book, I’ve started doing more research on how the rich get rich and how the rich stay rich!
I picked up a book called The Millionaire Next Door
For instance, did you know that:
- Most of America’s rich are first-generation wealthy
- Only 3.5 million (3.5%) of Americas 100 million households are considered wealthy
- The typical millionaire has an annual ‘realized’ income of less than 7% of his/her wealth (will explain this one shortly)
I don’t know about you but the first one really excites me!
The one thing that I am finding consistent in this book however, is that most interviewed millionaires built their wealth by actively minimizing their realized income and investing in assets that pay for any liabilities. That’s how the rich get rich and stay rich!
In other words, the rich minimize their taxable income. This includes:
- Consuming less products and services than the average American
- Paying cash and never financing on large expenditures, except for their mortgage
- Investing a lot their before-tax income in a 401K or using it to start businesses or invest in appreciating assets
One of the things that I have recently started doing to build my wealth is open an IRA and start investing in precious metals like Gold and Silver. In fact, I am also taking some of my after-tax income and buying precious metals (really enjoying this).
This picture above was recently taken when I received my very first 3oz of physical silver! I hope to have 100oz of Silver by the end of next year and a few ounces of Gold as well, as I protect my hard-earned dollars against inflation.
Are You Building Wealth?
Building wealth has nothing to do with being greedy and has everything to do with having the piece-of-mind that you can do great things and live an awesome life, and share that life with others, through your wealth.
Mastermind: Are you doing anything now to build wealth? Do you want to build wealth? If so, how?
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Congrats on the silver! Great investment.
Honestly this post kind of makes me angry. Not at you…because you are absolutely right. But at people that protest about not having a job instead of trying to make something happen for themselves (although when offered a job they jump right on it).
That point about most “rich” being first generation rich is a testament to effort, will-power and self-education.
Thanks Eugene. As I continue to learn research and learn more about the destructive policies behind the US dollar it really makes inspires me to do just like Americas wealthy and that is STRICTLY minimize my ‘realized income’ (taxable income) so that I can give less and less of my money to the government (legally) and invest it in assets I have confidence in. (i.e. gold and silver) I’ve actually bought 15oz more since my first 3 and I am really excited about this new pursuit to wealth accumulation.
I read the book as well and “The Millionaire Mind” by that same author. Loved those books and I totally am doing the same steps they are doing. It was surprising how my different my lifestyles are from theirs. For example, the average millionaire car is a used Ford! And, that the average millionaire income is about $70,000 a year! I thought, wow, millionaires are simply people who live on less than they make, invest what they make, and save what they make. Great book to read, Hector.
Hey Elmer
That’s awesome. I am really glad you’ve gotten a chance to read the Millionaire Next Door. You know what, I’ll be honest. At first, wasn’t too fond of the book when I started reading it.
I am a big mindset kind of guy. I believe that our thoughts and inner consciousness manifests into the actions we take on a daily basis. The books talks a lot about how today’s Millionaires are simply people that live below their means and usually do drive a Ford, never buy clothes or suites full retail value and they are always looking for the a sale. To me, that implied a poverty mentality and I quickly stopped reading the book. I am very careful about what I feed my subconscious mind.
A few weeks back however I decided to give the book another try and as I continued reading, I discovered that Americas Rich are regularly people and they are also entrepreneurs but they are smart about their wealth. They don’t simply consume everything that they make or feel that they must consume a lot of what they make to make a statement to the world about how much better off they are than everybody else. They simply live on what makes their lives comfortable.
One of the other aspects of becoming rich is minimizing their realized (taxable) income. This is something I already knew but it’s amazing to see how little in income taxes the rich do pay because they have businesses and because they invest their income to build wealth. That is definitely something that I have started doing within the last year and recently I’ve also started buying physical precious metals to protect my dollars against what I like to call the “ghost tax” – INFLATION.
Glad to have you here on iEC and I ope to see you back soon!
Hector, awesome post. Many people should have a chance to read this mind- opening post. I just RT THIS;)
Hey Tram! Welcome to Internet Entrepreneur Connection and thanks for re-tweeting my post. I am really glad that you enjoyed it enough to feel it was worth sharing with your followers.
I look forward to seeing you back here more often!
Good and clever investment! Have a luck in the New Year also!
Anna recently posted..london dentist
Hi Anna! Welcome to Internet Entrepreneur Connection.
Glad to know that you also share my sentiments on Gold, Silver and how to accumulate wealth. Since writing this post, I’ve invested about another $500 into Silver and am getting ready to invest in about 2 ounces of Gold come January 1st! Really excited!
I hope to see you back here sharing in the discussion more often.
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