So part of being a ‘Success Junkie’ is about wealth building.
There are 3 steps to wealth building :
1. Cut Costs : You can’t keep on upping your spending as you get more wealth, you have to manage your costs properly. It’s not how much you make (although that is important too) it’s about how much you get to keep. You can end up saving say £250 a month – that’s £3,000 a year. A nice sum of money with which you can do something with. A little bit of money saved here and there adds up.
2. Generate Cash : You have to find a way of increase your cash. I did a video recently (on Facebook LIVE) which talks about ‘pre-tax pound investing’ which shows the difference between someone employed and someone selfemployed and how different it can be money wise to have extra cash being self employed.
Generating cash is vital if you want to get wealthy.
3. Invest the rest : So today I live on my income that’s generated from my property portfolio.That pays for the villa in Spain and the house in Leeds, the cars, the bills – all of it. It also pays for all my flights, holidays etc.
That portfolio was designed to be income generating for me. It means I don’t need to work during the daytimes and can do whatever I want generally.
It takes time to build up a portfolio like this, but actually you can shortcut it.
But it starts by making investments.
I hear people talking about getting a 10% return (which is great) but then have credit cards at 24% APR.
So step one – cut your costs, pay down your debt.
Step two – while you’re doing that – generate more cash to pay down debt quicker and create a surplus with which to invest in.
Step three – get educated on how to build wealth for the long term that will generate income on a monthly basis for you (We’re monthly beings, which means our mortgages are monthly, our car payments are monthly, our mobile phone bills are monthly – so generate monthly cash to cover those items)