7 Key Principles to Wealth Building
Thursday, July 31st, 2008
1. Eliminate Your Debt: The current system is designed to keep you in “DEBT”. The banking system makes billions of dollars from our lack of knowledge of their tactics. When debt becomes an investment, wealth is created. The banks know exactly what this means.
2. Good Credit: Credit Education is one of the most important principles, because this is where we are throwing thousands upon thousands of dollars away everyday. The “Credit System” has strained and drained the finances of the average citizen. In the arena of mortgages, The Truth and Lending Disclosure dictates that a $200K home mortgage will cost you approximately $200K+ in interest payments, bringing the cost of your home to $400K+ and we have been brainwashed to believe that this is “NORMAL”. There is a system to offset those interest payments by more than 50%, with the right knowledge. Some of you will say that this sounds too good to be true but, this is exactly what your creditors want you to think. Added note, if you have good credit make sure that you have Identity Theft Protection.
3. Tax Planning: It is not necessarily how much you make, but how much you keep. Having access to tax professionals is a must to building wealth and keeping it.
4. Cash Flow Analysis; also know commonly as a Budget!
5. Financial Planning: A financial plan without action is an illusion.
6. Professional Legal Advice is a must to protect your assets and to limit your liabilities.
7. Passive Residual Income: There are many options here. You should find a niche or cause that you are passionate about and run with it. If you need some suggestions, I will be happy to assist you based upon your interests.
