Updated May 26th, 2022
Many of us are curious to discover how wealthy individuals continue to grow their wealth. What secret wealth-building strategies do they know that the rest of us don’t?
Building wealth is a process that includes multiple components and options. Some are more obvious, like creating a financial plan, setting up a retirement account, and saving and investing money. But others, such as removing money blocks, creating a money mindset, or manifesting goals, may not be as easily understood.
Traditional wealth accumulation consists of setting financial goals and accumulating wealth over time. This may include investing in the stock market, mutual funds, or exchange-traded funds. It can also include funding a retirement account, IRA, Roth IRA, or even acquiring a real estate investment. Non-traditional venues may consist of generating revenue from an online business, “side hustles,” affiliate marketing, JV partnership, and network marketing opportunities, just to name a few.
Regardless of your savings plan, the ultimate goal is to create a financially secure future.
This is what separates the wealthy from everyone else. Financially successful people invest their money in assets and live off the income those assets generate. In comparison, others spend the money on things such as vacations, toys, entertainment, etc.
And while this might make sense, too often, the people who share wealth building strategies are focused on get-rich-quick scams, leaving them wondering where they should begin or what they should do to secure their financial future.
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Why is Building Wealth So Important?
It’s important to first understand that money and wealth are not the same thing. Money is the physical or digital currency that you earn from working a job, making investments, or generating revenue from other methods.
Wealth is the accumulation of assets that grow over time and generate income. Examples include real estate, stocks, bonds, and business ventures.
True wealth is essential because it equates to financial freedom. It provides consistent cash flow, freeing you from that 9-5 job or being required to work. As a result, you get to choose exactly how you want to spend each day of your life.
Over time as your assets grow, generational wealth is created and ultimately extends to children and even grandchildren.
What Are Some Effective Wealth Building Strategies?
While various options are available for accumulating assets, these insights and tips are an excellent place to start.
Create a Healthy Relationship with Money
People who have money respect it and understand its value. They treat it like a valuable tool within their wealth accumulation toolbox.
Those without money often see it simply as a means to an end, something to be used for their wants and needs, not to be invested for generating more money. For example:
- I earn money, and I need to eat. Therefore, I spend my money on food and dining out.
- I work hard, and I go on vacations. But, I have no money.
With that said, some people are doing everything they can to survive. Perhaps you have children to feed and are not receiving any support. If this describes you, I encourage you to see the value in money, work to release money blocks, pay close attention to how you spend it, and start saving it – even if you begin with a minimal amount.
When I first began saving, I funded my emergency reserve with six months of expenses. Then I started investing just $25 per month. Now, I have over seven streams of passive income. We all have to begin somewhere. The key is to start.
Regardless of your situation, work each day to remove money blocks and improve your relationship with money.
Understand Wants and Needs
Affluent people understand the difference between what they want and what they need.
- Purchasing healthy food for your meals is a need. Eating out five nights a week without regard for your budget is a want.
- Paying your utility bills is a need. Taking vacations is a want.
- Filling your car up with gas so you can drive to work is a need. Purchasing your dream car is a want.
If you are not clear on your wants versus needs, click here to download our “Magical Budget.” This budget breaks down wants vs needs and works whether you currently have money or not.
To build wealth, you must first understand it and then create the mindset to attract it.
Most people trade their time for money. They work, and they get paid. If they are on vacation, having lunch with friends, or even sleeping, they are not earning any money. Because they are not accumulating assets, they must use their money to pay their bills. It leaves very little left to save or invest.
Affluent people understand that the secret is to build wealth by creating assets that generate passive income streams. They continually ask, “How can I generate passive income?” instead of “What can I do to earn money?”
Examples of passive income may include rental properties, guaranteed income, online business revenue, network marketing, and affiliate marketing.
Before getting back to your day, schedule a meeting with yourself to determine one action you can take to start building wealth. If you need help, click here to access “The 7 Principles of Becoming a Millionaire for Life.” At the end of Chapter 1, in the section called, “Releasing Mental Blocks and Core Beliefs,” there is an exercise that is helpful for determining your next best step.
Helpful Asset Accumulation Tips
1. Little things create big things. Saving a small amount can lead to something big. Spending small amounts here and there can lead to debt.
2. Get clear on what you really want and then stay laser-focused on making it a reality.
3. Write out your goals in positive, declarative statements using “I am” or “I (active verb).”
4. Simplify your life; less is more. Stuff complicates our lives and shows the universe we do not know how to handle our money.
5. Consider hiring a financial planner or money coach to help you create and implement a plan.
Building Wealth Conclusion
Building wealth takes time and patience. While it may be enticing to take shortcuts or follow shiny silver objects, the goal to keep in mind is long-term wealth creation.
Regardless of the wealth building strategy you select, it is helpful to remember that building and growing wealth does not happen overnight. Rarely does a person become rich overnight and maintain that status. Remaining steady and committed will win the game as you create and diversify your different revenue streams.
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To your fulfilled and wealthy life!