How do you turn your dream to build wealth from scratch into definite riches?
The answer is you need to do two things to fulfill your dream to build wealth.
First you need to know your present net worth. Which means you need to do a reality check on your present financial status.
The second thing you need to do is-look for proven paths to building wealth-that will help you fulfill your dream to build wealth
I want you to take this advice seriously because they are the most important steps in building wealth.
Why? Because one of the main reasons why many people fail to build wealth is: because they don’t know the true meaning of wealth.
The second reason many people fail to build wealth is -even when they know what it takes to build wealth-they don’t know what steps to take in order to start building wealth
I address the difference between wealth and income in the my article: how to build wealth starting from scratch
If you have not read the first part of this article you can click here to read more
Let’s recap the steps you need to take-if you are building wealth starting from scratch.
In order to build wealth from scratch you must:
- Determine the annual income you need to live your dream lifestyle
- Determine your ideal net worth you need to live your dream lifestyle
- Do a reality check on your present net worth. So you know how much wealth you need to accumulate.
- Choose one or two proven paths to building wealth.
In addition to these 4 steps …
- You should then draw up a plan to start building wealth with your chosen path and take massive action on your plans
We have talk about the first two steps to building wealth from scratch
Let’s now go on to…
Step #3. Do a reality check: determine your present net worth to know your income gap
The most important step in your journey to build wealth is when you do a reality check on your present net worth
Why? Because it’s only when you know how much you are worth that you can know how wealthy you want to be.
It’s easy for you to read all the motivational books in the world…attend seminars on wealth … dream about driving your Ferrari down Miami’s south beach
But if you don’t even know how much you owe, how much assets you have… you are only deceiving yourself
The best way to determine your net worth is to do a simple math of your:
- Assets… that is estimate the value of what you own (equity in your house, car, jewelry, savings, bonds, stocks and any other thing of value you have)
- Liabilities… this is the estimate of who you owe (mortgage, credit cards, personal loans, car loans, student loans, and any other person you owe money)
Then you do the math…
Assets minus liability equals your true wealth
For example if you have assets of $250000 and a liability of $100000 your net worth is $150000
Your true wealth is $150,000. Your net worth gives you an idea of how much wealth you have to accumulate in order to achieve your ideal net worth
By doing a true valuation of your net worth you’ll know how much wealth you have to acquire.
It’s easier to focus on your journey to build wealth because you know where you are going
The very act of writing down your true wealth-allows you to do a sober assessment -of what you need to do in order-to build wealth
When you know your true wealth …you are moving from being a dreamer to a doer… which means you are ready for the next step
Step #4. Choose a proven path to building wealth
The four proven ways to build wealth are…
Investments: accumulation of shares, stocks, bonds, savings
Real estate: owning rental and commercial properties
Business: marketing products and ideas
Internet: expanding possibilities
If you look at Forbes list of the richest people …they all made their wealth from one or more of these proven paths to building wealth
It’s very rare for you to become wealthy working for someone else except: you get equity from your employer. In that case you are an in-house entrepreneur
The biggest reason many people fail to build wealth from any of these proven paths to wealth is lack of focus.
Many people also fail to build wealth because they have a get-rich-quick mindset.
The truth about getting wealthy from any of the proven paths for building wealth is…
That it takes hard work, tenacity and persistence to build wealth.
So if you have a 9-5 mentality and love job security…
Don’t even bother trying to choose to start a business..or investing in shares…or an internet marketing business.
Why? Because you’ll easily get disappointed if your plans don’t work out at the outset of the journey.
You need to work hard in any of the wealth building vehicles for at least 3-7 years-before you start getting results.
Now if you are the type that prefers job security…then I would advice you…
…keep your job and instead save up for retirement
These 2 steps in building wealth is crucial because it’s the gap…between dreaming and fulfilling your desire to build wealth
I would like hear your comment on: how to turn your dream to build wealth in to riches