Wealthier by the day is a blog where I periodically write about how to grow your wealth. I say periodically because once you know the basics or fundamentals of how to grow your wealth they won’t change. There won’t be a new way to grow your wealth tomorrow. Sure there are many who talk about getting rich or making money fast but this is not how to grow your wealth. There will be no get rich quick schemes presented in this site; this site is about growing your wealth not getting rich.
Since this site is about growing your wealth it is important to understand what wealth is. What do you think wealth is? Well I can tell you that wealth is measurable while rich is not, wealth is tangible while rich is subjective; wealth is an equation while rich is abstract. Your wealth can be determined by subtracting the amount of your liabilities from the value of your assets. Therefore, your wealth equals your assets minus your liabilities; this is also referred to as your net worth.
Before I go on it is very important that you understand that you grow or build your wealth upon a foundation, a foundation which has 3 cornerstones that give it its strength. If all 3 cornerstones are not “strong” (sturdy) you won’t be able to grow your wealth. Most importantly, the strength of these 3 cornerstones depends on your money habits; you either have wealth building or wealth depleting money habits. Moreover, what determines if you have wealth building money habits is whether or not you are in control of your money. Once you are in control of your money you can begin to remove your financial roadblocks, strengthen your wealth cornerstones and then build your wealth.
You just don’t run out and “get” wealth. You need to grow or build your wealth and just like building a pyramid you need to start with a strong financial foundation upon which to build your wealth. A foundation whose strength comes from the strength of its 3 wealth cornerstones, the strength of your wealth cornerstones is based on your money habits and your money habits are based on whether or not you are in control of our money. Being in control of your money means that you make conscious (mindful, deliberate, intentional) financial choices
The 3 cornerstones of the foundation that you use to grow your wealth are:
- Spend less than you earn. Most people don’t do this and as a result they have money problems. The reason people don’t consistently do this is because they aren’t in control of their money and consequently have poor money habits. I will discuss in the blog articles how to take control of your money and how you can develop wealth building money habits to grow your wealth even if you are living paycheck to paycheck. This is the first wealth cornerstone that needs to be strengthened in order to grow your wealth.
- Invest your savings from cornerstone 1 to make your wealth grow. Not only do you need to live on less than what you make but you must make your savings grow by investing them to offset the effects of inflation. What you are doing when you invest your savings is making your money work for you rather than you working for money.
- Protect your wealth by having the proper wealth assurances. Even if you spend less than what you make and you make your savings grow by investing it you need to take action to protect your wealth or you could lose it.
Since your assets and your liabilities are what determine your wealth (wealth = assets – liabilities) it is crucial to understand why you have the assets and liabilities that you have. Your assets and liabilities were built upon your cornerstones of wealth based on all your past financial decisions. Every past financial choice you made either created a solid foundation with strong cornerstones for your wealth to grow upon or it created a foundation with weak cornerstones which inhibited you from growing your wealth. What this means is that what determines your wealth are the financial decisions or financial choices that you make. Each decision you make regarding your money either has a positive, neutral or negative impact on one of your 3 wealth cornerstones, which will have a negative, neutral or negative impact on your wealth.
Because your financial choices determine your wealth you need to know how you make your financial choices and why you make the financial choices you do. Your financial decisions are made using what I call your money habits or money skills. The good news is that your money habits are learned habits; therefore it is possible for you to learn money habits that will help you to strengthen your wealth cornerstones and grow your wealth.
Since your wealth is the result of your financial decisions it is important to understand that every single one of your daily choices concerning money will impact your wealth. The subjects of the articles in this blog will address how by changing your money habits you can strengthen your wealth cornerstones and become wealthier by the day.
A word of caution: there are a lot of blogs and websites with meaningful quick little one or two paragraph tips on how to grow your wealth. Tips such as: “Pay yourself first”, “Don’t go into debt”, “Don’t use credit cards”, “Have an emergency fund”, “Have financial goals”, “Use a budget”, “Create a financial plan”, “pay off your credit card debt”, “Invest for your retirement now”, ”buy no load mutual funds, “get an IRA”, “have a will”, “buy term life insurance” … These are all good pieces of advice but they are just that; pieces. These tidbits assume that you have strong wealth cornerstones and use wealth building money habits, and this is wherein the problem lies. The majority of Americans don’t have strong wealth cornerstones and because they don’t have wealth building money habits.
What you need is a step-by-step program that walks you through the wealth building process and teaches you how to build your wealth (since you weren’t taught by your folks or in school). A step-by-step program to empower you to understand how to create strong wealth cornerstones and what you need to do in order to build your wealth upon them. A program that empowers you to remove your financial roadblocks such as credit card debt and living paycheck to paycheck. A program that teaches you wealth building money habits and how to use them in conjunction with wealth building financial tools in order to strengthen your wealth cornerstones and grow your wealth. A program that will show you where to “find” money from your current income to do the things mentioned above. A program that will empower you to eliminate your excuses of why you can’t grow your wealth and empower you so you can grow your wealth. A program that I recommend is my step-by-step wealth building program called MONEYSHIFT.
Let me warn you now, if you aren’t ready to change, or if you are looking for a quick fix, or if you are not willing to put in the time and effort into changing then don’t checkout the MoneyShift program. It is a program about doing, it is a program about change and in order to change it requires you to take action. If you are willing to take action and the program will walk you through a step-by-step process to empower you to remove any roadblocks that you may have that are preventing from growing your wealth. Click the link if you would like to learn more about the step-by-step wealth building program. MONEYSHIFT
