People often ask me, how do you build wealth?
Wealth was something that was all around me growing up on Mercer Island, WA. There were large mansions, yachts and waterfront property all around us. Gorgeous skyline views. Fancy cars. Designer clothes. I was from a middle class home and didn’t have these things. I began to wonder, how do people get rich?
I embarked on a life-long journey to answer that question. Education such as a business degree and CFP® were valuable and taught me a lot, but didn’t really answer my burning question: how could I create wealth and enjoy all the things life had to offer?
I certainly didn’t learn how to create my wealth in the investment world. They teach that you should buy mutual funds and hold them forever. They look at how assets perform in the rear-view mirror. They ignore other important assets classes such as real estate, commodities and currencies. I rarely met someone who became wealthy by owning mutual funds, and never anyone young! I wanted a step-by-step plan – a formula, if you will, that wouldn’t take my whole life to become financially free and secure.
Books were where I always turned for knowledge. So it was no coincidence that to learn how to become wealthy I started reading. I read lots of books by millionaires and people who had become rich. When I was about 10 years old, I read Think and Grow Rich. Think and Grow Rich had a profound impact on my life. (Ironically, I was recently honored to be featured in a documentary by the The Napoleon Hill Foundation. I’m humbled to be featured in this film along with Bruce Lee, W. Clement Stone, Wendy’s founder Dave Thomas, Og Mandino, Chick-fil-A’s founder and other luminaries).
What I noticed was that millionaires had several steps in common. When I followed the steps, eventually I made $2 million!
I started investing in real estate foreclosures. Although my business partners and I did well (15% returns), I realized it would take a higher compounding rate (Step 5) to create the wealth I wanted. About that time, the stock market seemed to be doing well, so I bought William J. O’Neil’s book, How to Make Money in Stocks, and began to teach myself how to invest in individual stocks. This went against what the financial industry recommended and what my career was – representing money managers in mutual funds, managed accounts and institutional funds.
Soon I was making more money with stocks than I was with other investments and my net worth began to grow quickly. It was also the right cycle, the tech cycle, and when I was 38 years old, my investment accounts crossed the $1 million mark and the next year doubled to $2 million! I was ecstatic!
It’s now my mission, passion and purpose to share with you the knowledge I have about wealth building.
Are you ready to learn the 6 Steps to Wealth?
I know these steps work (yes, they will work for you).
- The first step is to simply have a wealthy mindset, because all wealth does begin in our mind. You want to keep negativity out of your thoughts and feed it as much positive information as possible. Part of feeding your mind positivity is so you can believe that you really can have wealth. You need to believe it yourself first before you will see it.
- The second step is to save a nest egg, because you need some money to start investing. Don’t worry about how much, just save as much as you can, sell an asset to raise funds, invest an inheritance, or work extra hours – whatever you have to do to get some money together to invest.
- The third step is to have a mentor, someone to show you the ropes or how to invest and make money because they have already done it. It’s my mission, passion, and purpose to show you how to build wealth and I’ve done it – you’re in the right place!
- The fourth step is to find a money engine. A money engine is simply something that grows your wealth. It can be investments (like stocks, bonds, or commodities), it can be your own business, it can be real estate. It can be lots of different things, but it’s the “vehicle” you invest in that’s is going to grow your wealth.
- The fifth step is to compound at a high rate. The higher the rate you can compound your money, the faster you grow your wealth. I’ll show you how to identify the best places to invest and the right time to own them. I noticed investment cycles – that there were times certain assets performed better than others.
- The sixth step is to protect your wealth, because you don’t want to lose the wealth you just created. You also want to see if it makes sense to use leverage (debt). A tried and true method many millionaires have used is using “other peoples’ money” or OPM. There is a time and place for that, but you also want to be protecting your wealth and not carry a lot of debt when the economy is close to the peak of a bubble.
There you have it – a roadmap that shows you the steps to create wealth. These 6 steps are the answer to my lifelong question, “How do you build wealth?” It’s most likely because they followed these 6 steps. Start today to put this into practice for yourself and move closer to YOUR financial freedom.
Secrets of Billionaires
Learning about economic bubbles and investment cycles was something that I learned more about after leaving my career in the financial industry. I learned billionaires had access to information that helped predict the future – sometimes it was so accurate it predicted exactly what would happen to the day. For example, the October 19, 1987 stock market crash was predicted in advance and allowed cycle followers such as Paul Tudor Jones to make $100 million in one day.
While I was skeptical at first, the more I explored cycles, the more I found that the elite had known about them since 1931, when President Hoover’s economic team told him their research found that the Great Depression was actually a repeating cycle. This developed into an elite team such as the Smithsonian, U.S. Vice Presidents, Princeton, MIT, and certain entrepreneurs who formed a Foundation for the Study of Cycles and kept the information about economic cycles and their advance predictions to themselves. Cycles are still not known in the investment industry and only a select group of sophisticated investors have had access to this research. After finding out cycles existed, it’s changed my life. It’s allowed me to know in advance some very important market turning points, such as the stock market peak in 2007. Part of my mission is to reveal this information to you.
Cycles repeat at regular intervals. If you can recognize patterns that go back in time, you can also project those cycles into the future and they can predict what markets will do. There are 4,200 cycles that have been identified – think of your heart beat, seasons, crops, tides, etc. They are all interconnected.
If you were around in the 1980’s, you might remember a very different cycle than what we have today. There were double digit interest rates, high oil prices, high inflation, rent control, etc. Today we have been experiencing deflation, low interest rates, low inflation, etc. Interest rates move in a 30 year cycle and peaked in 1981, bottomed in 2011 and will be heading up again. It’s like a pendulum.
Be Wealthy & Smart VIP Experience
Knowing how cycles work can help you make a lot of money because if you can be in the winning sectors and avoid the losing sectors, I believe it can help you create wealth. That’s why I started the Be Wealthy & Smart VIP Experience™. To teach investors about investment cycles.
Once you’ve created wealth and achieved financial freedom, you will want to give and create your legacy. That can involve giving money away and also creating a future legacy for your family and for generations to come.
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