WealthWeek

PART III – PLANNING

So far, we’ve discussed optimal mindset and vision and how important they are for wealth creation.

Let’s continue with our example of netting $2 million in five years so that a passive residual income of $200,000/year can be generated at a yearly return of 10%.

The next question is: what is the best way to net $33,000/month?

There are opportunities that you can pursue in order to generate this income, but it may be hard to believe at first if you currently only make a percentage of this income at work.

Adjusting your mindset will provide your access to the increase in income that you desire. Unfortunately, many people would simply give up far too early and declare the task as unrealistic… There are the odd few though who persist and race past their own doubts and these are the small percentage of people who make up the wealthy few we touched on at the start of this series. Through an ideal mindset, these are the people who ask the right questions and find ways to make it all possible.

So, in considering all of the above – how shall you go about making your target of $33,000/mo?

A good place to start would be to asses your finances. Ask yourself: how much money is being expended monthly that doesn’t have to be? Could you be saving more of your income (above and beyond the usual 10% that’s commonly suggested)? Find ways to cut our useless spending – the sort of expenditures that you won’t necessarily miss all that much – and you will automatically lessen the amount you need to bring it. This part is easy, but it usually results in small gains.

For larger gains, you need to find ways to increase your income. If you are employed, find out if you (and your partner if you’re in a relationship) can look into getting a raise, change jobs (move up in the company), or take on extra work (perhaps your on commissions and can sell more)? Any extra gains here can prove to be quite useful in helping you reach your income goals.

Lets see how this all looks so far… Suppose both efforts mentioned above result in a savings of $1,500/mo combined and a net increase in salary of $18,000/year combined (or, an additional $1,500/mo above and beyond that found with the decreased expenditures). That’s $3,000/mo that is now taken care of. You can start investing this money immediately so that it can start working for you. What’s interesting about this exercise is that when people do this, they actually find more money to put away than what they originally think they can.

Now, the above savings and increase in income make for a good start, but there’s till a lot of ground left to cover… That is, there is still $30,000 left to generate every month. The good news is that there are plenty of options available to help you. You can start a home business (network marketing is a great option, dare I say – just in case you’re strictly opposed to it and need to hear me vouch for it). If you can’t give network marketing a nod, why not consider going online. Many people are making their fortunes online these days. Why not join them and start an online business venture? If you think you need special skills, think again… There are plenty of people without skills who are still making money online in ways that you can’t even imagine. How about Real Estate? The markets may be uncertain at the moment, but that doesn’t mean opportunities aren’t present. You can make a lot of money in real estate if you get creative and understand how to invest in different market conditions. How about exploiting your own unique skill set? You can start a weekend business and make a great deal of money part-time.

Let’s explore this last option a little further…

Suppose you are a great cook and your partner is good at designing websites. If you were to split the $30,000 down the middle that would leave an amount of $15,000 each that you’d both have to generate.

That works out to $3,750 per week for each of you.

Based on what can be charged for typical website projects these days, your partner decides that he would have to generate anywhere from 4 to 8 websites projects that will bring in his share of the income. Or, he could charge less for the site design and put his clients on a monthly billing cycle for regular updating. However the side business would be structured, he could easily generate the $15,000/month if time, dedication and creativity were applied on a consistent basis.

As for you, suppose you decide to utilize your cooking skills but determine that a little research would have to be done in order to flesh out a good strategy. You start to consider your options… How about a catering business? Or, why not sell your special baked goods to restaurants, stores, cafeterias, etc? Lets say you decide to pursue the catering route. At first, you’ll be building up your clientele and so the money won’t come as quickly. However, soon enough, you’ll have repeat business plus all the new business you’ll still be generating. When this happens, you’ll be generating the needed $3,750 fairly easily.

As a bonus, as the months continue to turn over, all this additional income will be going straight into your investment vehicle. So, you won’t be the only one who will be working so hard – your money will be earning its own interest income and adding to the pot as well. What a beautiful system.

Make no mistake, people do this. It may be a lot of work at first and perhaps a little tiring along the way but once they start, it is highly rewarding and addictive. Once you prove to yourself that you can easily make the extra money you need, you’ll be laughing all the way to the bank.

The example above might seem far-fetched to some (even, down right unrealistic). If you are in this boat, I highly urge you to observe your thought patterns because it is this mindset that keeps you out of the wealth you want and deserve.

Never acknowledge defeat. Instead,
explore possibilities.

This article series has introduced to you a simple look at how wealth can be created. I wanted the series to be simple and uncomplicated so that you could see just how easy it really is to visualize and implement a plan. The hardest part is dealing with your mindset. Once you get past your own limiting thoughts, you will surprise even yourself as to what is possible.

I hope to hear about your inspiring stories very soon!

To Your Success,

Eff Jay