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A Secret Lesson in Growing Wealth

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Top Secret money strategies

Top Secret money strategies

A secret lesson in growing wealth

By Douglas Vermeeren

 

There are many financial programs, seminars and advisors that provide  the promise of financial abundance and instant changes to your current financial situation. Yet many of these programs offer complex strategies on money management and investment that either require a degree in economics to implement or in the end don’t provide the pay off that they promise. Is there a formula or system that will work to create greater financial security and an abundance financial future? Is there a strategy that will work for everyone, even those who don’t have extensive financial education?

 

Some gurus suggest there is no such thing as a blanket answer that will provide a solution to the financial challenges that so many people face today.  But is there?  And if there is, where do I find it and what do I do with it once I possess it?

 

There is a solution. One that will will work for everyone. The only difference will be in how it is applied. The challenge for most people is that this solution has been a secret. When you hear what it is you may not agree that it’s a secret, because it is so simple. But just because an idea is simple – don’t mean it is well understood. In fact, we generally measure how well something is understood by how common it is practiced. If that is the measurement of how well something is understood – then this is one of the greatest secrets ever revealed to mankind about money. Here’s the secret to become debt free, financially abundant and achieve incredible prosperity. Are you ready?

 

The Secret: It’s not how much money you make, it’s how you spend it!

 

The illusion: Most people think that how much they spend day to day is not really going to make a difference to their overall experience financially. But this is far from the truth.

 

The way money is spent in your life will either create freedom and opportunity or take it away.  Too often people assume that incredible opportunity and extreme freedom are given only to those with a lot of money. Again, that freedom and opportunity are found in how the money is spent. We see examples are around us (especially among celebrities and professional athletes) who make millions of dollars but become victims of vice and in a short time find themselves with a shrinking experience of freedom and opportunity until their popularity and money have both vanished. on the contrary we also see many who begin with very little money and ultimately become highly freedom and experience an abundance of opportunity. Such was the case with Warren Buffet who at his first job made close to $12,000 annually but later became one of the wealthiest men in the world.

 

So how should you spend your money for greater financial success? Before I answer that it is important to remember that every purchase you make is an investment. You are trading your money for what you value most. Having said that keep in mind that there are purchases that return value (appreciate) and purchases that do not return value. (Depreciate)

 

The difference between high net worth individuals and those in poverty situations is found in where they spend their money. A recent study demonstrated that people in poverty situations, or paycheck to paycheck survival mode typically spend an average of 97% of the income on purchases that do not appreciate or provide a return in value. This could include things like entertainment, shopping, eating out and so forth. So what amount do you think high net worth individuals spent on items that appreciate in comparison. I am always amazed when I ask this question at seminars. Attendees usually shout back answers like 50%, 60% or even as high as 80%. Is that what is required to become financially abundant – to dedicate the vast majority of your entire income to your future financial self. It doesn’t sound like fun.

How are you Spending your money?

How are you Spending your money?

 

Thank goodness that is not what is required. In fact, the difference is quite small. High net worth individuals actually spend only an average difference of 5% on assets that appreciate. But that 5% makes a huge difference. It reminds me of the saying that a large ship is steered by a small rudder. This is true in wealth building as well. The difference in the large things comes down to consistency and effectiveness in the little things.

 

One of my favorite life experiences so far has been to stand on the Great wall of China. Although the Great wall can be seen from outer space, when you get up close its interesting to see that it is really made up of small tiny bricks. This is the same way financial abundance is created. Small moments assembled to create significant victories.

 

One other thought: You may have heard about the expression – ‘Disposable income.”  I don’t believe it exists. Disposable means to throw away. If you are in the habit of throwing money you will never be financially free. There is no such thing as disposable income. And if you have been throwing away your money – stop it.

 

Remember how you spend your money makes all the difference.

 

So what can you do about it?

 

– Start looking more carefully at your purchases every day.

  • Consider what these purchases are costing you monthly and yearly
  • Explore where you can better use your money

 

Remember it doesn’t take a large shift in your money to make a difference. But it does require that you make some changes and you become consistent in better spending habits. As you do this you will find greater financial abundance and more freedoma nd opportunity.

 

Douglas Vermeeren - Millionaire Mentor

Douglas Vermeeren - Millionaire Mentor

Douglas Vermeeren is the CEO of the Monthly Millionaire Mentor program (www.TheMonthlyMillionaireMentor.com) He is also the author of Guerrilla Millionaire, Self-made Millionaires for Dummies, The Millionaire Myth, Millionaire Wisdom. He is considered one of the top wealth trainers in the world today. You can find out more at www.DouglasVermeeren.com

One Response

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  1. Reblogged this on wisdomandfunny.

    wisdomandfunny

    April 10, 2012 at 1:21 am


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