I am asked in every seminar: how do I get started in building wealth when I don’t have any money? Getting started wealth-building involves four key learnings.
1. Learn to Invest in Yourself. In 1982, I was given a “cassette tape” by a friend. As I listened to it, Jim Rohn captivated me, as he talked about the importance of “investing in yourself.” He said, “you don’t take time to the market place, you take value. So make yourself more valuable.” The same is true in getting started in building wealth. The first place to invest is in yourself. It will increase your income.
2. Learn to Live on 70%. The other 30% has very specific purposes. They are:
- 10% you invest
- 10% you give to someone else to invest (a professional)
- 10% for tithing
3. Learn the Difference between an Asset and a Liability.
- Asset increases in value over time
- Liability decreases in value over time
(Think of the difference between purchasing a car and house. A car depreciates in value while a house increases in value.)
- Asset puts money in your bank account
- Liability takes money out of your bank account
4. Learn to Eliminate and avoid consumer debt. We are taught in America from an early age how to be consumers. The word “consume” means to “destroy.” What are we destroying? We are destroying our ability to build wealth. The truth is how we spend money should be only on those things that are actually important to us. Avoid all the things that we think we need to keep up with the Jones’s.
We will be publishing a new post every Sunday, Monday, Tuesday and Wednesday. Join me tomorrow for some real estate investment tips!