Please welcome back Anton from Dream Cash True who just launched a new ebook! let me know if you would like to guest post on RFI.
Despite what some people may say or believe, building wealth is not that complicated. You don’t need to earn a high six-figure salary, know some secret investing strategy or receive a large inheritance.
What you do need is the discipline to make smart every-day financial decisions. You may not think that how you handle money on a daily basis is important in the long-term. But I’ve found quite the opposite to be true. Those that become financially successful develop a set of financial habits that make it easy for them to build wealth. They follow a proven system that essentially puts their wealth building on autopilot.
My Wealth-Building System
For the past ten years or so, ever since I was a teenager and got my first part-time job, I’ve followed a wealth-building system. It’s not anything revolutionary and in fact is very similar to what I observed other successful people doing. I didn’t come up with it all at once and I have improved and revised it many times.
I would say that I’ve been rather successful, since I was able to grow my net worth to close to $1 million before turning 30. Granted, I’ve spent much more time managing my money and investments than almost anybody I know and lived an extremely frugal and simple lifestyle. But at the end, I was able to achieve the freedom to work for myself and will be able to retire much earlier than most of my peers.
My 7 Steps to Financial Freedom
I call my system the 7 Steps to Financial Freedom and I’ve recently published an eBook that thoroughly describes exactly how it works (in case you’re wondering, these are not the same steps described by Dave Ramsey).
To give you an overview of my wealth building system, here are the 7 steps to financial freedom I describe in my eBook:
1. Commit to Becoming Financially Free: everything starts with you. The road to financial freedom will not be easy and you need a strong commitment and powerful goals to help you keep going when things get tough.
2. Spend A Lot Less Than You Earn: in order to increase your net worth and build wealth, you first need to learn to control your spending habits and minimize your expenses.
3. Become the Enemy of Debt: debt is the absolute opposite of wealth. If you want to become financially free, you need to get rid of any debt you have and start living a debt-free lifestyle.
4. Protect Yourself and Your Wealth: there are a lot of things that can undermine your wealth-building progress if you are not prepared. I suggest a system that uses an emergency reserve, insurance and legal entities for protection.
5. Buy Assets, Not Toys: this is a key concept to understand and master – if you want to become wealthy, you need to use your spare money to buy assets that will grow in value, provide passive income or both.
6. Maximize Your Income: frugality can only take you so far. To speed up the wealth-building process you need to work on making more money as well.
7. Grow and Nourish Your Investments: it is important to understand how the previous six steps work together to create a complete wealth-building system.
Download my eBook for Free
For a limited time, I’m offering my 7 Steps to Financial Freedom eBook as a free download when you subscribe to my weekly newsletter. To get your copy, just head over to my website using the link below:
My eBook describes each of the steps in detail, gives you a step-by-step action plan for implementing them into your own life and provides links to many helpful resources and tools that will help you succeed.
I hope you enjoy reading it and feel free to contact me with any questions or comments!
This post was featured on the Carnival of Personal Finance, thank you!