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:
Download the 7 Steps to Financial Freedom eBook for Free
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!
Not trying to start a debate, but I would argue that this point definitely isn’t always true -> “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.” There are many, many wealthy individuals who leveraged debt to help them build wealth.
I would tend to agree with DC. I understand the sentiment, but if used wisely, debt can be leveraged to create and build wealth. Of course, it is easier said than done, but still think it is totally possible to do.
Sounds like a great book! I agree that spending less than you earn can take you far….even if you don’t earn a ton to begin with.
#5- Buy Assets Not Toys really resonates with me. I see sooo many people who get a raise and buy expensive crap that they don’t need. It’s a huge waste, especially if they aren’t putting enough money toward retirement, etc.
Im trying to get the book but the link is not opening up! 🙁
I’ll try again later 🙂
All sounds rather sensible.But then life gets in the way sometimes…for instance I’d love to spend less then I’m earning, and can do that, but then my shoulder is in pain, and I would need to pull some money from my e-fund to get it treated. That’s just one small example. But yes, overall if you follow small, simple steps daily you’re going to be doing so much better in life than other people financially.
Looks like you have a great system in place – I especially liked your next-to-last point, that you need to maximize income! That’s really crucial. Saving can do a whole lot for your net worth, but when you only have so much to save there’s a limit. Earning more is the solution to that limit!
I read this not too long ago and found all kinds of great information inside. Great book for anyone on the journey to financial freedom. And at the low price of free it something everyone should get!
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The one thing that you absolutely must avoid if you are wanting to be financially free is debt. The quicker you can get out of debt and avoid it, the better. Sometimes, it takes a financial planner to help get you there, but it is definitely worth it!
I think that people who make enough money live pretty well, but they are not saving enough. Selling on internet can also help to make wealth You might sell physical products or digital items but if they are relevant, people are going to buy. Become the Enemy of Debt – This one is so true! Thankyou for the free ebook
im thinking and dreaming with financial freedom almost every day!!!! good post
Nice! This was the best article on finances I’ve read in my entire life. I’m still a beginner, but these tips will help me a lot! Thank you very much.