The key to wealth is not what we earn. It is in what is spent on us.

-Warren Farrell

Money, creating wealth, and the income gap between the upper, middle, and lower classes are raging debates that will not end anytime soon.

Why? The wealth gap between the rich and the middle class widened tremendously to recor.d levels since the great depression

A new report published by the Pew Research Center in the United States of America shows that the wealth gap between America’s rich and the middle class widened to record levels.

The typically wealthy American household now has seven times the wealth of the middle class.

Creating wealth is about doing things differently.

One reason identified as the accelerator for the wealth gap between America’s Rich and the working classes was the difference in how the upper class and middle class accumulated wealth.

Upper-Income families invested in the stock market and other asset classes. The middle-class families relying on higher incomes have not risen with inflation in the last decade. They also held their wealth in their homes and 401(k) that declined in value during the recession

Don’t Make this mistake about wealth creation.

The greatest mistake, you can ever make in creating wealth, is to work for money.

Why? Because when you work for money, you are less likely to become wealthy

What makes you rich: is having money work for you instead of working for money.

Wealthy individuals have learned how to invest money in acquiring valuable assets. These assets then generate income that supports their lifestyle

The wealthy know how to work financially instead of physically working for money.

I think it’s worth repeating that: wealth is created by fiscally working for money instead of physically working for money.

Therefore, for you to become wealthy, you must start thinking differently about building wealth

If you are reading this and thinking…

What do you mean by “think differently about wealth? It means you must begin to think about building wealth with an entrepreneurial mindset.

Not sure what this means? Then….

I want you to answer the following questions:

Are you curious about how why wealthy people can afford long vacations?

Are you interested in how some individuals grow more prosperous daily without working harder?

If you answered yes to any of these questions, you don’t understand the process of building wealth.

Today I am going to let you into a simple yet often ignored habit that wealthy and successful individuals do when it comes to money.

The secret to building and preserving wealth is this- don’t work for money. Instead, make money work for you.

 

If you adopt the mindset of- making money work for you- you have a higher chance of building wealth.

How do you get money to work for me instead of working for money?

It starts with you having an understanding of natural wealth, and knowing how to create and preserve wealth.

Let me explain…

What is wealth?

Wealth is any store of value. True wealth means any asset you have that has the potential to generate income.

I want you to notice that I did not mention money. The key to wealth has an asset that produces income.

When you shift your thinking from looking at wealth creation from having physical cash to the lens of an asset that produces income-you’ll begin to see why wealthy individuals become richer without working physically for money

Here are some examples of assets that create true wealth:

• Financially valued skills (marketing, sales, copywriting, management skills)
• Business ownership
• Royalties from intellectual property and works of art
• Income-producing real estate
• Cash deposits in Interest-bearing bank accounts
• Owning of stocks and shares

Real wealth comes from having assets that generate passive income.

You become wealthy when you have assets that generate a passive income that is enough to pay for your lifestyle even when you are not actively working.

You now know the meaning of wealth. The next question is:

How does creating wealth happen?

The answer is easy.  Wealth creation occurs when you bring value to the marketplace.

Why? Because any time, you create a product or service that settles a need in an industry, you create value in that industry.

For example, when Thomas Edison invented the electric light bulb, he created a valuable product that solved the lighting problem.

Bill Gates created value in personal computing with Microsoft.

I want you to do this exercise:

Think of many other examples of wealth creation you’ve seen in other industries or around. This will give you a better idea of how to create value

The bottom line is that wealth creation follows when you begin to view problems as opportunities to add value.

Here is the formula for wealth:

Wealth = n times (value created)

Where n equals the number of people you serve

This means the more people you can serve, the wealthier you’ll become.

Now to answer the final question that is how is wealth maintained?

 How do you preserve wealth?

You preserve and grow wealth by adding value to the marketplace, then saving and investing the proceeds of your income.

You must understand the secret to becoming wealthy and staying  wealth.

Why? Because it’s possible that you can build wealth and then lose it in a short time.

There are many stories of individuals who amassed fortunes and then went bankrupt.

The stories of Mike Tyson, Nicholas Cage, and Dennis Rodman all remind us of how you can quickly accumulate wealth in one breath…and then become broke if you are not careful.

That is why…

Your Cash flow pattern is crucial to creating wealth.

Another secret to building wealth that lasts for a lifetime is cultivating healthy money habits. How you earn and spend money is crucial in creating wealth.

Why? Because the way, you manage your money is what decides your financial fortune

In his book Rich Dad Poor Dad, author Robert Kiyosaki concluded that you could predict a person’s future wealth by looking at his cash flow pattern.

Kiyosaki also found that an individual’s cash flow pattern tells a story about his mindset about money.

Kiyosaki identified three cash flow patterns that reflect an individual’s money mindset:

Poor cash flow pattern: A person with a poor cash flow pattern earns money and spends all his money on expenses. As a result, this individual has no savings or assets.

Middle-class cash flow pattern: A person with a middle-class cash flow pattern earns a high income. But spends most of his income trying to look gorgeous.

He rides a luxury car, buys designer clothes, and lives in a highbrow area. As a result, he spends more than he earns.

A person with a middle-class cash flow pattern may own a few assets, but he has little to show for his high income.

He may appear wealthy because of the outward appearance of his material possessions…but he is not affluent.

Doctors, lawyers, celebrities, and other high-income earners are individuals with these middle-class cash flow patterns.

The Rich cash flow pattern: a person with a rich cash flow pattern is someone who earns most of his money from owning assets.

In other words, individuals with abundant cash flow patterns have more assets than liabilities, making more money than he spends.

Kiyosaki concluded that you must have a rich cash flow pattern to build and preserve wealth.

The author believes anyone can develop a rich person’s cash flow pattern.

What you need is to change your spending habits. This means you spend your time and money acquiring assets instead of liabilities.

The most significant benefit to having a rich person’s cash flow pattern is that you’ll earn money even when you are not actively working.

When you have a rich cash flow pattern: you no longer work for money instead, money works for you.

Do you desire financial freedom?

If you said yes, then here’s my advice…

To gain financial freedom, you must commit to focusing your time and energy on learning how to make money work for you.

In other words, you need to stop working for money.

How do you stop working for money? The answer is easy.

• Learn how to create more value.
• You need to Accumulate assets instead of liabilities.
• You need to keep growing your assets until you have enough income to maintain your lifestyle without working.

That’s it

Those are the keys to building wealth. Why not start using them to start your journey to financial independence?