If you don’t want to spend your whole life selling Time for Money, then you are going to have to start Building Wealth.
There are only Three ways to do this:
- Save and Invest in Paper Assets (Moon)
- Build your own Business (Sun)
- Build a portfolio of Investment Properties (Stars)
Let’s discuss each in turn. Please keep the picture of your Fin Freedom Map in mind as we discuss this below.
1. Save and Invest (Build your MOON – retirement)
- This is the method used by most. Work, Save, Invest. If you look at your Map, you’ll see yourself spending ALL your Time working (black arrows to your Cloud), selling Time for Money, and then Saving some of it to your Moon (green arrow from Cloud to Moon).
- It is not easy to create Wealth in your Moon. If you invest ‘well’, you will preserve your Money against the depreciating power of Inflation. If you invest ‘very well’, you will create a small surplus to re-invest, or use as a ‘pension’ back to your Cloud.
- You first have to make the Money, before you can save some to your Moon. Banks don’t want to lend you money to create Wealth in your Moon. So this is a very very slow process. It takes most people to age 65 before they ‘maybe’ have enough to stop adding to their Moon.
- This is where Financial Advisors focus 100% of their attention. They want to ‘help‘ you invest your Moon Assets, invariably in products where they earn the best commission.
2. Build a Business (Create your SUN)
- Not that easy, if you look at the statistics around new business failures.
- The big advantages of owning your own Business, though:
- You can use OTP (other peoples time). As long as they produce more than what they cost you.
- You can use OPM (other peoples money). As long as you can use the borrowed money to make more than what that money cost you.
- You can spend before you pay tax. As long as the expenses are used in the production of Income. People earning salaries first pay tax, and only then are they allowed to start spending. Business owners first spend, and only then pay tax.
- These three simple advantages can help you use leverage to build your Wealth much more rapidly than any other way… except…
3. Property (The Light is in the STARS!)
- More ordinary people become Millionaires and Billionaires from property than any other asset class.
- There are lots of ways to invest in property. For the average Salary earner, we advocate only one: RRIP: Residential Rental Income Property. I learned from the No 1 Property Guru in South Africa, Coert Coetzee. Do yourself a big favour and join his Newsletter here for free. (Warning: if you ever buy something from his business, I’ll be getting a small kickback, thank you. You will never pay more, though).
- Nowhere else can you use leverage this easily. Banks fall over themselves to give you their money to buy property. After all, it’s what they do, isn’t it?
- Nowhere else can you get money at such a cheap cost. Interest rates on bonds are the cheapest finance you’ll ever get, often below the prime lending rate.
- There are tons of Service Providers available in every facet of your Rental Property Business. Outsource everything! You need to spend your time touring Europe and lying on the beaches of Mauritius, not worrying about broken geysers and obnoxious tenants. :)
And that’s it! For more info, feel free to join Your Fin Freedom Map Mini Course. It might still be available for free if you hurry.
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