My dad always used to tell me that money doesn’t grow on trees. That was just his view of things and of the world.
I don’t share that philosophy.
In fact, money does grow on trees. All sorts of economic benefits come from selling fruits and nuts and using trees for wood. Aside from the obvious literal meaning of that statement, It seems like everywhere you look there are opportunities for financial prosperity.
People are becoming wealthy in businesses that range from porta potties to law firms, despite a difficult economic climate. Because of the calculated risks that some are willing to take, more millionaires are made during a recession than at other times.
Building wealth for yourself and your business is no easy task. But I’m here to tell you it’s 100% possible. It all comes down to the work you’re willing to put into it and the small sacrifices you’re willing to make along the way.
These 5 wealth strategies have helped me stay afloat in my entrepreneurial and home-life endeavors and I want to share them with you.
I hope they resonate with you and help you achieve the life you are building for yourself and for your family.
1. Have The Right Mindset
“All things are created twice. There’s a mental or first creation and a physical or second creation to all things.” – Steven Covey
What does this mean? It means before you do anything, you have to have the mental image of you being wealthy. Before the real-life wealth comes, you need to see it first.
Getting yourself into the mindset of being wealthy doesn’t have to be met with hours of meditation or reading every self-improvement book that’s ever been written. It all comes down to having a large vision for yourself and your life. And then doing the small things every day that get you one step closer to making that vision a reality.
Imagine envisioning your life a decade from now. Here are some questions you can ask yourself that will help you better formulate that vision:
- What car am I driving?
- How do I start my day?
- What’s my overall net worth?
- What does my body look like?
- What does my house look like?
- What differences have I made to it?
- What kind of events am I attending?
- How much money do I have in the bank?
- Does my wardrobe look different than it does now?
- What hobbies and activities am I doing that bring me joy?
- What’s the next vacation I’m planning to take my family on?
- Who have I had the chance to meet in person and learn from?
When it comes to having the right mindset to build wealth, I live by Warren Buffet’s quote when he says, “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”.
2. Invest in Yourself
The best financial investment you will ever make is in yourself.
Education is key when it comes to building wealth. Invest in yourself by reading books, attending seminars, and talking to financial/business experts. The more you know about finances and investing, the better equipped you’ll be to make informed decisions about your money.
A few years ago, I did a podcast episode with Derick Van Ness, the founder of Big Life Financial. This man is passionate about helping business owners create financial certainty and confidence.
3. Start a Business
According to a Wall Street Journal report, small business owners are the largest class of millionaires; larger than investors, executives, and those who got lucky and inherited their money.
Starting a business can be a great way to build wealth while doing something that you love. With the advent of the internet, it’s easier than ever to start a business from home. Whether you’re selling products online or providing a service, owning your own business can give you control over your income and financial future.
You may have multiple business ideas and don’t know where to start.
Don’t worry, you’re not alone. Here is one of my past blog posts that addresses this very concern.
4. Create Passive Income Streams
Passive income is another way to increase your wealth.
Passive income includes money that you earn without actively working for it. Examples of passive income streams include rental property, dividends from stocks, and interest on savings accounts. Building passive income streams takes time and effort, but it can be a reliable source of income in the long run.
Those who are willing to play the long game are the ones who will ultimately become wealthy.
5. Diversify Your Investments
Not investing in the stock market yet?
Before you read any further, create an investment account and then come back and read the rest of this article.
Diversification is one of the most important strategies when it comes to building wealth. By diversifying your investments, you spread your money across different asset classes, which can minimize your risk.
Yes, there will always be risk when you invest, and I would argue that risk is a key component of success that you should intentionally become more familiar with. A life without risk isn’t a life of fulfillment and adventure.
You can diversify your portfolio by investing in a mix of stocks, bonds, and real estate. Maybe even some crypto if you’re feeling adventurous. This way, if one asset class performs poorly, the others can pick up the slack.
As a modern family man, building wealth can seem like an insurmountable challenge.
But with the right strategies, you can create a secure future for yourself and your family.
The 5 strategies I laid out in this article are things I have done to build wealth and if you follow them like I did, you’ll be well on your way to financial prosperity. Remember, it takes time and effort to build wealth, but the payoff is more than worth it.
Start today and secure a bright financial future for yourself and your family!
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