WEALTH WILL CHANGE YOUR LIFE
All millionaires and financially successful people have habits which help them attract wealth to themselves.One major habit is that they measure their financial success by their “net worth”.The majority of people today who may be financially struggling are measuring their success by their income.
This is not correct because their financial success is not only measured by income but also by;
• Their savings
• The investments the make
• How they keep their financial life simple
Our question to you is- do you measure your financial success by your income or net worth?If the answer is income or you are not sure of net worth systems then we are here to help you now!
Here are top tips for you to use to now and start on the correct path to wealth;Your net worth is essential because it is the ultimate measure of wealth because it can be liquidated into cash if the need arises.
There are two types of income, one is working income like a wage packet or passive income which money that you make automatically, like from an internet business.
Your savings are part of your net worth because they make up part of your financial future and security.The investments that you make are crucial to be recorded as they give you a higher achieved net worth.Finally keep your spending simple. Avoid debt or car loans and budget very carefully because what ever is owed has to be taken of your income, savings and investments.
Can you no see why net worth is a mindset of successful people?
It tells you the big story of your finances and wealth and also can be generated into cash if needed.
Do you have a net worth spread sheet?
Please go to a search engine and type in “net worth” we are sure you will find what you need.
Please remember this principle; "It’s not what you make, but what you keep." That will make you wealthy.
Once wealth planning strategy that is very popular deals with real estate. The strategy focuses on making a fixed asset, the equity in your home, grow. Many homeowners do not realize that the equity in their home is not growing. Instead, it is the value of your home that grows, which creates ADDITIONAL equity. Let’s look at an example.
Assume I own a home worth $1,000,000 and have $500,000 in equity. The equity is just sitting there. It does not grow. If the value of the home drops to $900,000, I still have the same amount of equity. If the home appreciates by $100,000, I get an additional $100,000 in equity because the house increased in value, not because my original $500,000 grew in any way. If you can get your mind around this concept, you will realize the problem.
The strategy for this situation involves turning the equity in your home into a growing asset without taking on any additional risk. The process is very simple, but a masterful one. You refinance the home to remove as much of the equity as possible. The equity is then put into no risk custom life insurance product.It grows tax free in the product, which is based on the performance of the stock market. If the stock market has a negative annual return, the insurance policy is tailored to eliminate the risk by setting your annual gain or loss at zero. Put another way, if the market loses 10 percent this year, you lose nothing.
|
