Are you looking for an abundant lifestyle? Do you want to increase your income and standard of living? Well you’re not alone.
Financial Freedom is an important goal for 82% of Australians. That’s according to a recent survey we conducted on over 25,000 Australians. Off the back of that survey, we received hundreds of questions.
What I'd like to do is answer The Top 5 Questions for you. Who knows, one of the questions might have been yours! Get some answers and clarification around some of the areas around your own wealth creation endeavours.
So the very first question was actually our number one question. And we received this from more people than any other question:
#1. How can I create a wealth creation journey without any money?
A lot of people were asking the question "If I want to go and create wealth, how do I do it if I don't have any money?" Well the fact is it is actually called wealth creation, not wealth multiplication.
If it was called wealth multiplication, then it would make sense. You know, you need wealth, then you multiply it. But wealth creation is actually building wealth up from scratch.
The best way to begin the journey of wealth creation, I believe, is to first of all increase your wealth vocabulary. Increase the knowledge you have around wealth. Because the funny thing about how our mind operates is we are conditioned to only observe and experience, and be aware of the opportunities that we can fathom inside the dialect we have inside our mind.
So if your brain can't fit an opportunity into the language that you have inside your mind, it just deletes the opportunity altogether. So one of the first things that I did in my own personal wealth creation journey was I increased my vocabulary and my knowledge around wealth creation concepts. Things like asset classes.
There are five core asset classes that people build wealth in all over the world. And so, learning just about asset classes is a starting point that will actually allow you to open up to see opportunities around you.
Things like debt reduction, debt recycling, debt leveraging. These kind of concepts are phrases that actually mean something. And if you understand the meaning behind them, they open you up to a new world of possibility.
So one of the easiest starting points for anybody who's wanting to join a wealth creation journey without much money, is to just start learning as much as possible. Increase your wealth vocabulary and you'll find the opportunities start to present themselves. And you realize that wealth creation is something that can be done by anybody, even if you have no money right now to talk about.
#2. How can I earn money without stress?
I know a lot of Australians out there are very stressed when it comes to earning money. In fact, unfortunately money creates a large amount of stress in the body, and we also know that stress is one of the leading causes for heart disease and cancers, and a whole range of different illnesses that we experience really do have the origins in stress. And what we do find is that money is one of these things that creates a large amount of stress. Both in the creation of wealth, itself, but also in not having money.
If you want to start to create money without being stressed out, first of all you have to understand how money is created.
And money basically is created through exchanging value in a marketplace.
For example, you can get a piece of wood. And you can carve that piece of wood into a beautiful drum stick. And then you can go and sell that drum stick to a drummer.
In doing that creation of value, you in fact make money. So the key to actually making money without stress is to find some things that you are inspired to create. Now you may be inspired creating a healthy mind set in people. You may be inspired helping people create a loving relationship.
You may be inspired helping people build a business, for example. But you can't begin to generate income without first creating value in the marketplace. So to answer your question, if you would like to be create money without being stressed, then you've got to find something to create that doesn't stress you. That is valuable in the marketplace.
#3. How can I avoid impulse buying and spending?
If you impulse spend, you are definitely not alone. A lot of people do impulse spending. In fact, there are entire shopping centers designed just for those people. I guess the thing is not really how do you avoid it.
I don't think you need to avoid impulse buying and spending. I think, if you're able to generate and create value in the marketplace, then you can consume whatever it is that you like.
There are standards out there of living that people are able to achieve in their life, and they're not greedy. They're just reserved for people who want to provide value in the marketplace. So here's my little statement that I would like you to think about.
First create, then consume. That would be my philosophy.
So, you're allowed to consume. You're allowed to do impulse buying. You're allowed to spend things, you're allowed to buy your sister a house. You're allowed to take your friends on a holiday. You're allowed to do whatever you want with your money. You earned it, you created the value. You can do whatever you want with it.
Don't let anyone tell you, ever, what you're allowed to do with your money. But if you're not going to be told what to do with your money, my advice would be to seek out experts to give you some advice around that.
However, rather than trying to curb your impulse spending, what I would first look at is to try and increase your creating of value ability. Because if you do learn to create value in the marketplace, then you're able to consume whatever it is that you like.
And that consumption could be the building of charities. It could be the feeding of people around the world. It could be setting up philanthropic organizations. It could be setting up libraries. It could just be buying a nice car or traveling the world. Or just retiring young. But you can only consume, if you create.
So the big problem is actually, people who consume way before they've created value. So, consume whatever you like. Don't try to curb your impulse spending. But make sure that your ability to create value in the marketplace outstrips your desire to do impulse spending and buying.
#4. I've realised I'm psychologically comfortable with debt. How can I change this?
Well, here's the thing. If you are psychologically comfortable with debt, that's actually a good thing. Because some of the wealthiest people on the planet, as a vehicle for wealth creation, is to do something known as leverage.
Now leverage is where you use a little bit of your money, and a large amount of OPM: Other People's Money. Banks, most predominantly.
Now, if you're comfortable with debt, then that is a good thing because, as you go down a wealth creation journey, depending on the structure and strategies you use to build your wealth, quite often you'll find yourself in significantly greater levels of debt.
Now there's a time in my life where I was $137,000 in debt. Just in consumer debt. And I had nothing to show for it. I had a very dodgy $350 canary yellow Alfa Sprint.
I was living in a rented apartment. I had very little furniture. I mean I was really in a bad financial position. So I had debt, but the debt was not serving me. The debt was not doing anything to grow my financial position. But one thing I did learn about that debt was this.
That debt taught me how to save money. Cause think about it. Every week or month, or fortnight, you have to pay an amount towards that debt. You have to pay that debt off at some point.
Every time you're paying that debt off, you're actually developing a habit of saving. Because if we remove the debt, but left the exact same behavior behind, you are in fact saving.
So debt is designed, fundamentally, to teach people how to save. And so even though I was in debt since I was 14 years of age, I learned, throughout my whole life, to save money. I know I didn't actually accumulate any of it cause I was paying debts off, but the behavior of putting money into an account regularly, like clockwork, taught me over the years to eventually learn how to save.
Nowadays, I've cleared all of my consumer debt, but I have millions of dollars worth of debt now that is leveraged out from the banks to increase my assets in my portfolio.
So, being comfortable with debt is actually a good thing, because you get to leverage other people's money, and if you feel comfortable with debt now, then you'll feel comfortable with debt when it is an asset-based leveraged debt. However, keep in mind that your debt really does assist you to learn how to save. So just keep that thing in mind.
#5. What are the three best action steps I can take towards my financial freedom starting today?
The three best action steps anyone can take right now would be simply this. First of all, work on your wealth imprint. Inside online, we have a set of belief systems that formulate something that modern day psychologists call a wealth imprint.
And whether or not you're surrounded by abundance, or you're absolutely broke as you can be, the fact is all of that is generally driven by your imprint inside your mind.
So the very first step I would take is to start to look deeply at the beliefs you have around money. How you feel about money, and the actions you take towards money all being born out of the way you think about this thing called money.
Look inside your mind, and check out your beliefs and the meaning you put on money.
Step number two would be learn some of the tools. Start to learn different tools that are actually utilized for wealth creation. Start to get an understanding more deeply about taxes and insurances and what to do with your money and how to budget and cash flow.
Just get some general knowledge around the actual utilization of your money.
Maybe speak to a financial planner or financial adviser, or someone like that to give you a generalized idea, a little bit more about the whole game of money itself.
And the third big thing would be to get yourself a vehicle of some description. Not a car, but a vehicle. A wealth creation vehicle. And it's generally five wealth creation vehicles out there.
There's education, there is fixed interest, there's property, shares, and business. But get yourself a vehicle and start to understand and learn about the actual vehicles, the mechanisms that people all over the world utilize to build wealth.
And if you're willing to work on your mindset, to learn some of the tools, and get yourself a great vehicle, you'll be well on your way to building wealth in no time.
Read more about: Wealth