What separates wealthy people from most people?
Is it the family they were born into? No, because there are plenty of rags to riches stories out there.
Is it knowledge? It can’t be just knowledge, because then librarians would be the richest people on the planet.
If it’s not family or knowledge, what is it? It comes down to actions repeated over time. And if you can take those same actions, you can achieve the same results.
Like the Roman Emperor, Marcus Aurelius once said, “If a thing is humanly possible, consider it within your reach.”
Here are the 7 actions that the wealthy know how to do:
1. Liberate Your Mindset
This is about understanding your wealth imprint and how to expand that wealth imprint. A lot of what you do with money was set up before the age of 10. This is based on beliefs, decisions and ideas that you’ve gained about money. As you formulate your wealth imprint, we can find ourselves trapped by the way we think about money.
The richest of cultures throughout time such as the Greeks and Egyptians were able to take the first step and break free of the confines of the mind and actually go out there to create their own wealth.
2. Link Your Goals
Everybody has a set of goals in life: things you want to do or achieve, but there is a very specific neurological process that allows you to deeply connect your goals with money. Many people don’t realise that money can unravel every other goal in your life: you can be successful in every aspect of life, but one financial mistake can wash away all those other achievements.
3. Lockdown Your Capital
When it comes to capital or cashflow, wealthy people have a deep understanding of what and where to put their money and how to utilise it effectively.
It comes down to 3 core categories: Fixed, Fun and Future. If people have an understanding of how to distribute between fixed expenses, what they do for fun, and their future, what they find is if they lock down their capital, that will assist them in their wealth creation abilities.
4. Learn The Strategies
Once you’ve mastered the first 3 actions, you’ve got to start to learn some of the strategies people utilise inside the different asset classes that allow them to build their wealth as effectively as possible. If you haven’t heard about the 5 asset classes (education, fixed interest, property, shares and business) from our previous videos on finances, you can find out more here.
Once you’ve understood the 5 asset classes, you’ll discover the classes that deliver the most astronomical returns are education and business.
5. Lead Your Plan
From there it’s important to create a wealth plan, and lead that plan. Once you have your strategies, you need to formulate a unique plan for yourself and put that plan into action.
At the end of the day, it comes down to your value system and who you are as an individual.
6. Locate Your Team
Locating your team is the process of going out there and finding the right people to assist you in building your wealth. At the end of the day, wealth really is a team sport. A lot of people think wealth creation is something you do by yourself.
What we’ve found is that if you’re able to locate an effective team to support your wealth journey such as accountants, tax advisors, financial planners, property buyers, they are there for one core outcome: your financial success.
7. Leverage Your Profits
Once you’ve started to make profits, the next step is about learning how to leverage your profits to add a multiplier to them.