Wealth means different things to all of us and if we want to pursue it, we need to know what it means to us.
I want you to become wealthy by your own measurements so keep on reading and start making it happen!
The definition of Wealth can mean numerous things…
Depending on who we ask, we will get a different answer. The only thing which is very likely is that they will think about money and financial wealth. Some people feel wealthy when they have enough money to buy what they need for themselves and their family and at the same time are living fulfilling lives and have their health.
Regardless of how many people we would ask about their definition of wealth, the answer would be different and the more we think about it, the more things we would like to include in the concept of wealth.
The thing with wealth is that you define what it means to you and what your relationship to wealth will be like. You have a certain perception of what wealth means and likely it is linked to money and the upbringing you have had and what you were taught about money as a child and young adult.
Our personal definition of wealth is: Living Life On Our Terms!
Why you need to know your definition of Wealth
I want you to be comfortable around the word wealth and what it stands for. If you are not comfortable using the word or even thinking about it, it is likely you will have a hard time becoming wealthy regardless of how you define it. I want you to have as much as you want of whatever it is that you want!
By knowing your own definition of wealth and what it means to you, both in monetary terms and in other terms, it will be much easier for you to start moving in that direction.
Why numbers matter
Have you ever heard about a marathon runner who was running a marathon but never measured the distance? Who never had a finish line? No?
It is the same with money, we have to know where we want to go so that we can start creating a plan and then taking appropriate action. The runner will train, increase the distance as time and sessions go past and eventually reach their goal! The journey towards financial wealth is exactly the same and you, as the runner, will take one step at the time but all these steps together will make the difference between making it or not!
Financial Wealth = income
One can own the biggest house on Long Island but that will not pay the bills. A house (unless rented out and covering all your costs) is a liability and will need cash to be taken care of. The focus should always be on cash flow, money flowing into your pocket. That is money which can be used to pay your expenses. Having lots of assets but no income won’t serve you.
Having income (ideally passive) coming your way all the time will create freedom as you will have time (and money) to do what you appreciate the most. Owning assets that generate cash-flow on the other hand is of course always interesting and that should always be the focus. All successful people have multiple sources of income as they don’t want to rely upon only one.
I have written quite extensively about the importance of focusing on passive income and that is something I recommend to everybody. Try to spend as much time as possible thinking of ways to create passive income, not only selling your time for money. I want you to have the freedom of choosing how you spend your time! Wouldn’t that be something to include in the definition of wealth?
Break it down and take one step at the time
If you think about financial wealth and you just blurt out a number, say 10 million USD, it will seem so far-fetched you will most likely not even get started! Let us go back to the runner. Well, 42,100 meters is a long way to run and if I told you to do it tomorrow, would or could you? Most likely not. If I on the other hand told you to do 1,000m tomorrow, 5,000m in a month, 10,000m in three months, half a marathon in 6 months and a full one in 12 months, could you do it?
The answer is a clear yes (if you are physically functional) and you know it. It will be hard, you will have to exercise but if you break it down in smaller pieces you can make it if you have a good enough reason to do so.
That is why we break it down (like with any goal) into four different categories called the Wealth Pyramid.
Wealth creation stars by laying the foundation, creating your Financial Security. When you have that base, you will just continue up the pyramid until you reach Financial Abundance. Check out this post of a detailed description on The Wealth Pyramid.
This is exactly like running, there is no difference between running the first meter versus the last. It is done in exactly the same way, by running one step at the time!
Wealth creating is the same, you start with the first steps and you just continue taking these steps and as you do, you will accumulate more and more money. The technique, strategies and habits to do so are the same all the way to the top. For sure your numbers will change but the actions will remain more or less the same all the way. You accumulate money, you make your money work for you so that you make even more money and that is how wealth is created. This means anyone can do it, there is no secret recipe and you can see that by the numerous wealthy people who have started from absolutely nothing and with very low or even no formal education.
Just like running…
Anyone can do it, it is about creating some great habits and the easiest way of doing so is to just replicate someone who has already been successful at what they do. Every little step counts and in our blog posts and training sessions we hope to show you how you too can take the steps towards creating the life you really want, a life completely on your terms.
Actions to take:
Check out these posts:
- What glasses are you wearing and why?
- Passive income and why you must care!
- How to change your money mindset!
- How to create your own vision board – we become what we think about
- Vision and Goals – create your own future now
- Habits of highly successful people – just copy them!