Updated April 21st, 2023
How is Wealth Inside and Out Created?
Many agree that wealth is created by individuals and businesses exchanging goods and services. When companies produce products or services in exchange for money, that money can be used to purchase more goods or services from someone else. This creates a cycle of economic activity as people use their money to buy more things, creating jobs for others and more wealth for the overall economy.
Additionally, investments can be made to create new businesses, which then create their products or services, increasing the goods and services circulating in the economy and creating additional wealth. Ultimately, it is up to individuals and businesses to decide how to use their money to optimize their economic growth potential. No matter how it is used, the economic activity cycle created by wealth creation is essential for a healthy economy.
The Ultimate Goal of Creating Wealth
And while this understanding is true, many people stop here or generate income only to spend it. They either do not understand or never achieve the ultimate goal of creating wealth – financial and life freedom.
It is common to earn and spend money because our society rewards this.
For over 22 years, I was a top financial advisor. During my career, I was number 1 in the world for a major financial institution. Everyone wanted to connect with me.
But when I achieved my net worth goal by accumulating my profits (18x my earnings, there were no free trips across the globe or my phone ringing off the hook). In almost every company, we are rewarded by how much money we earn, not our net profit or how much money we save or accumulate.
Here’s a glance at Creating Wealth Inside and Out Episode…
[02:21] How you can benefit from the podcast and what you will learn
[03:21] One of the biggest differences between millionaires and others
[06:04] The reality of dealing with money and why knowledge is critical to your financial future
[07:05] The journey to becoming wealthy inside and out
[07:30] Lesson #1 – There are no coincidences
[08:17] Details of what you will learn, including both the inner and out game of money
[08:55] The three pillars to win with your money and mindset
[09:38] The ultimate goal of money and mindset
[10:04] Definition of a fulfilled life
[10:27] Lesson #2: The ultimate goal
[11:14] The process to get the answers to your toughest questions and clear on what you want
[11:57] Lesson #3 – Money Matters
[12:59] Lesson #4 – Your Mindset
[13:03] Your Worth and Wealth Barometer
[13:51] Lesson #5 – Integrating Your Inner and Outer Game of Wealth
[14:36] The two primary sources for financial guidance
[16:26] Where to get investment advice
[16:45] Integrating practical manifestation and the real world how to
[17:30] About Annette, background, and money mindset issues
Rich vs. Wealthy
Early in my career, I didn’t get this. My initial goal was to earn $100,000,000. Thankfully, one of my first clients with a 9-figure net worth (over $100,000,000) said, “Annette, you are heading down the wrong path.”
Income vs. Net Worth
He said the goal isn’t to earn revenue but to accumulate wealth. Someone with a $100,000,000 net worth has many more options than someone making $100,000,000. People in charge of their futures have a net worth. They also have many more choices and the ability to control their futures.
It was a conversation that changed the trajectory of my life and focus. It is the difference between “rich vs. wealthy.”
Rich people earn and spend a lot of money. Most are new to money (like lottery winners or people who get a windfall). Wealthy people are focused on the accumulation of wealth. They focus on activities and opportunities that create wealth and allow them to accumulate assets.
Click here to access our free money mindset guide here:
They often take small salaries. And instead, focus on the investment of what could be spent on their salary. Warren Buffet is a great example. His income has been $100,000 for years, and he still lives in the home he purchased years ago.
The average millionaire has a $ 77,000-a-year salary as their focus is on creating wealth and accumulating assets.
One year I was in the top 5% of my firm. This meant that I was able to sit at a table with other top producers. The number one guy was generating 3 to 5 million dollars annually.
I sat next to his CFO (the money guy of the firm). About 30 minutes in and listening to how they marketed and what they were spending, I realized I was generating more profit each year than he was. It was a huge eye-opener and kept me on the path of accumulating wealth.
Additional Ways to Create Wealth
In addition to goods and services, wealth can be created through investments in stocks and bonds. By investing in these securities, people can gain access to the capital they accumulate and provide assets to be used later for purchasing other investments and accumulating wealth for retirement and/or creating generational wealth.
Investing your business and personal profits (income less expenses) that grow is a powerful tool for creating wealth for you and your family’s future.
In my 35+ years of advising the upper echelon of millionaires and seeing thousands of people through their accumulation of money and retirement where they spend their money, I have never had anyone tell me that they have too much money in retirement.
A helpful tip is to understand that earning and spending money is a short-term dopamine hit and is rewarded by society. Wealthy accumulation is a long-term dopamine hit that requires discipline and delayed gratification.
Creating Generational Wealth
Many people want to create wealth that benefits their children and family.
What is generational wealth?
Generational wealth is a term used to describe the accumulation of financial resources and assets that can be passed down from generation to generation. This type of wealth provides long-term economic stability to families, allowing them to build upon their previous success and make further investments over time.
Generational wealth typically includes investments in stocks, bonds, real estate, and businesses that can help families create financial security for future generations. Having generational wealth allows families to provide greater opportunities for their children and grandchildren while increasing the chances of future success.
Building Generational Wealth
There are many ways to build generational wealth, such as investing in stocks or starting a business. Investing in real estate is another great way to create a lasting family legacy. For example, purchasing property in an up-and-coming area could result in steady appreciation over time, which can then be passed down from generation to generation.
Generational wealth is not just about money but also about passing down knowledge and values instilled in each generation. Teaching children and grandchildren about the importance of saving, budgeting, and investing can help ensure financial success for many years. Building relationships within the family is also important, as those connections can provide emotional support and guidance that will last for generations.
Your Family’s Legacy
Generational wealth is an important part of a family’s legacy, allowing them to create financial stability and provide opportunities for future generations. By investing in stocks, real estate, businesses, and other resources, families can ensure their legacy will continue growing. Passing down knowledge and values is also a great way to ensure the long-term success of a family’s generational wealth. With proper planning and dedication, generational wealth can provide financial stability and many opportunities for years.
Finite and Infinite Wealth
Another important insight is that you often have infinite earning potential while creating wealth. Once you retire and begin spending your money, you have a finite amount of money. While many people will share that you only need 60% of your income, many people need more because once they are retired, they have a lot more time to do what they want (travel, golf, etc…)
And while it is essential to enjoy your life now, the secret is to create a plan for the future so you can also love your life once you retire.
The Ultimate Goal
Before we dive into today’s episode, I want to remind you that the ultimate goal is to create and live a fulfilled life. And regardless of what anyone tells you, only you can decide what your ideal life of financial well-being and fulfillment looks like.
That said, the choices you make today will dramatically impact your tomorrow. So, choose carefully. There is nothing fun about enjoying life today without a plan for your future life. And living broke in retirement is never a good option.
Today, I share 5 Insights on Creating Wealth.
Lesson One: There are no coincidences.
There is a reason you are here and that our paths have crossed. The secret is to start where you are and do the work required to achieve your goals. There are three pillars you need to master to win:
1. Create your success foundation. As a result, you will be much better prepared to handle the challenges that you encounter.
2. Money mastery, including creating a spending plan and generating income
3. Wealth accumulation – how to grow your net worth.
Lesson Two: The Ultimate Goal for Creating Wealth
In this module, we dive into the problem of focusing on an emotion. The ultimate goal is to live a fulfilled life. You will learn how to tap into your subconscious mind to identify your ultimate goal.
Lesson Three: Money Matters
Money won’t bring you happiness, but neither will poverty.
Why people say, “Money doesn’t matter,” and how this often keeps them broke.
Lesson Four: Mindset Mastery
You will learn how to master your Worth Barometer (belief and self-esteem). Your Worth Barometer leads to your Wealth Barometer.
Lesson Five: Integrating your inner and outer game of wealth.
There are two camps of experts. One group is advisors. They teach you how to build wealth. And, they typically focus on financial planning and teach you how to save for retirement and start investing in the stock market, exchange-traded funds, Roth IRA, or real estate.
They often are experts in 401K plans, employer offers, and other technical topics.
The other is more focused on coaching regarding money.
Many support you in manifestation, the law of attraction, etc. They also often provide advice relating to building an emergency fund, how to save money, practical strategies for paying off debt, etc.
And while both provide valuable insight, the secret is to combine both camps.
Conclusion: Creating Wealth
One of the most important steps on your journey to living a financially free life you love is creating wealth.
The sooner you create a plan and consistently execute it, the further along you will be.
This episode provides you with the basics you need to start and build your plan so you can achieve your goal and live your dream.