Your wealth is equal to the value of your assets minus
the value of your liabilities. Therefore the only way to grow your wealth is to
increase the value of your assets or decrease the value of your liabilities.
You build your wealth upon a financial foundation, a
foundation that has three very important cornerstones which gives your
foundation strength. All three of these
cornerstones must be strong in order for you to build or grow your wealth. The
strength of your wealth cornerstones comes from your money habits and in order to have wealth building money habits you
need to be in control of your money.
Being in control of your money means that you make mindful and intentional
financial choices rather than financial choices based on your emotions.
The 3 cornerstones
of wealth are:
Spend less than you
earn:
Most people
don’t consistently do this and as a result they have money problems. The reason
people don’t consistently spend less than they earn is because they aren’t in control
of their money and consequently they have poor money habits. Therefore, it is absolutely
critical that you are in control of your money in order to strengthen the spend
less than you earn wealth cornerstone.
Invest your savings
from cornerstone 1 to make your wealth grow:
Not only do
you need to live on less than what you make but you must make your savings grow
by investing. What you are doing when you invest your savings is making your
money work for you rather than you working for money. You accomplish this by
using the power of compounding to grow your wealth with investments.
Protect your wealth by
having the proper wealth assurances:
Even if you
spend less than what you make and you make your savings grow by investing them
you need to take action to protect your wealth or you could lose it.
In order to grow
your wealth you need to learn how to strengthen all 3 of your wealth
cornerstones. You need to learn wealth building money habits and use a few
financial tools to empower you to strengthen your wealth cornerstones. One
source of information to accomplish this is the step-by-step wealth building
program called MoneyShift.