How to Build Wealth in Three Simple Steps Part 1 of 3-Create a Wealth Mentality

Most get rich quick schemes will eventually just make you poorer. However, if you want to know how to build wealth, there are a few simple strategies that are time-tested. Building wealth is not complicated. It is actually very simple. In fact, most wealthy people use these (or similar) strategies to get rich slowly. Although, with a little sacrifice and risk-taking, you can shorten the time frame dramatically.When I applied to go to college, I had no idea what I wanted to do for a living. I watched my mom and dad struggle financially my whole life. So my goal was to become a millionaire. Not knowing any millionaires at the time, though, I had no clue how to become one. This was a time before Mark Cuban figured out a way to play audio over the internet. It was before Zuckerberg created a social yearbook to remember the names of girls that his friends met on campus. It was also before candy matching games soaked people for millions $1.99 at a time.Like a lot of young people, I paid my way through college by taking out student loans. When I graduated from school, my first job didn’t pay a whole lot. So, before long, just to get by, I started to charge everyday expenses to credit cards. When I entered the business world, I had a negative net worth.However, a little over a decade later, I made my first million dollars. It took 12 years to make this first million. Less than six months later, though, I made my second million.You’ll Never Get Rich Unless You Understand the Difference Between Wealth vs. Income.Although my income was well over a million dollars every year, I didn’t start building wealth right away, though. There is a big difference between income and wealth. Income is just the amount of money that you make. If your expenses are less than your income, your net will be positive. You will be able to put this excess into a savings account if you like or create an emergency fund. Over time, the savings can grow into wealth. However, this is the process of getting rich slowly. Depending on the current inflation rate, by the time you want to spend these savings, your money will likely not be worth as much as when you socked it away. Income is not wealth. In fact, saving is also not wealth.You create wealth when you create something (or invest in something) that generates income for you whether you work or not. By the way, you can start building wealth at any age. My son Ben takes after his mom — he’s very good with money. A few years ago, he pulled out his cash box that was stuffed with years of Christmas and birthday money. He had socked away almost $1500 just $20 or $40 at a time.When the Covid pandemic hit in 2020, the stock market crashed in March and April. In May, Ben bought bargain-priced stock which he sold just a few months later almost tripling his nest egg. We call the money Ben received as gifts income. When he put that money in his cash box without spending it, he created savings. However, when he invested the money he got a return on his investment. This passive income created wealth for him.For Full Show Notes, Visit How to Build Wealthhttps://www.leadersinstitute.com/how-to-build-wealth-in-three-simples-steps-wealth-strategies-for-any-age/