Once we get the blueprints finalized, it’s time to work on creating wealth. In this step, we will be doing the following:
- Generating Income
- Paying Ourselves Firstand Budgeting
- Being Fiscally Frugal
Generating Income
Your journey may vary. It has to be funded somehow. There are three ways we can generate income to fund out dreams and continue our journey to financial wealthy.
- Working for ‘the man.’ It’s a tried and true way to make money. The upside is that you know your roll in an organization. The downside is that your employer may not have a roll for you in the company, asks you to leave, or cut your hours.
- Working for yourself. It can be scary but very rewarding. Many millionaires started and ran their own businesses. It’s a great feeling knowing that you’re in control of your destiny to a certain degree and that you created something on your own.
- Investing. Investing is an important part of generating income. The more you learn, the more you earn. By investing in yourself, you add value to yourself for the job market or learn to help build your business. Passive investing allows the money you earned to work for you by generating income for your goals.
Paying Yourself First and Budgeting
I’ll be the first to admit that budgets suck. If it worked well, then we’d all be doing it. We’re placing our priorities in the wrong place and not focusing on our goals. Budgets become a practice of self-deprivation instead of an area of growth. We pay everyone before we pay for our goals and dreams. Paying yourself first is a budgeting strategy to set money aside for our goals that we outlined in the planning phase of becoming wealthy. This money becomes seeds that we plant for our goals. Don’t have enough money to pay yourself first and pay the bills? Look at the previous step and the next step to find (or make) more money.
Fiscally Frugal
Our resources are finite so we need to be smart about it. We can spend our resources on things we love and have a passion for and cut out things that does not contribute to our dream. We need to learn to want less. It will feel like we can afford anything. So stop spending money on things that are not important. Cut cost and expenses without compromising your goals and dreams. The money we saved can be used to generate more wealth OR be used on what we love and our passions. Saving money is the chic thing to do!
We’re along our way to become wealthy. We’re making money, we’re saving for our goals and passions, and being spending smart with out money. The next phase on our journey is maintaining what we started.