Building Your Money Machine TES 044 - 5 Steps to Become Wealthy
In this episode, #1 Bestselling Author and Highly Acclaimed business & Entrepreneur Expert, Mel Abraham tackles a question that gets asked all the time which is about what it takes to become wealthy from a money standpoint. First, we need to understand that the concept of wealth building is less about the money and more about the discipline that you have in the process.
We also should take a look at how the wealthy deal with their money versus others. Most people spend their income on items that they want and they invest the remainder. The wealthy first invest and the remaining is what they use on their living. So, prioritize investments.
Understand that wealth creation is not something that happens overnight. It takes a lot of work and discipline. Here is the 5 step framework to become wealthy:
Wealth Creation Funnel
- Comfort: At first, create a comfort fund of around 2000 dollars. It will be your cushion. Get it right and you'll have a little more relaxation but if you don't get it right, you will live in anxiety.
- Consumer Debt: Get rid of the drains that are sucking out your financials such as credit card payments, car loans etc. Do not spend tomorrow's dollars for today's benefits. Start paying down your debt. Use the Debt Breakthrough Calculator which allows you to prioritize your debts. You won't have to deal with high interest if you get it right.
- Peace of Mind Fund: Beyond the comfort fund, now you build a peace of mind fund which is 2 years of your expense. Prioritize it, and make it happen with the help of your discipline and integrity. If you don't get this fund right, you won't see a vision. If you do, then a lot of possibility opens.
- Property Debt: Next, handle your real estate debt and start paying it down. You will effectively be debt free in the process. There is no appreciation or increase in your property without it but if you get it right, it builds your equity over time.
- Freedom: Finally, continue to accumulate enough wealth so that your lifestyle can be maintained even after retirement. Your freedom fund is the cash flow machine that generates earnings from the wealth that you created. With freedom fund you've got life your way otherwise you're shackled to a job for the rest of your life.
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ABOUT MEL ABRAHAM
Mel is the founder of Business Breakthrough Academy and Thoughtpreneur Academy where he helps entrepreneurs bring their businesses to the world and build the lifestyle that they want. Mel is one the most sought after entrepreneurial mentor and strategic thinkers of our time. Unlike many other so called “business coaches”, Mel has lived everything he teaches and continues to do so. Mel has built, bought and sold numerous multimillion-dollar businesses for himself as well as his clients. As the author of The Entrepreneur’s Solution: The Modern Millionaire’s Path to More Profit, Fans & Freedom Entrepreneur, Mel’s strategies have helped build thousands of businesses and have generated hundreds of millions of dollars for his clients, ranging from large corporations to startups and small family-owned businesses.
Mel is a true believer in the entrepreneurial way of life and says that this “new frontier” is the paradigm that will shift society from simply existing to living life