Which Money Cycle Are You In?
Even without winning the lottery, your chances of becoming a millionaire are a lot better than you think. In fact, if you have the desire and conviction to be wealthy, you have a better chance of generating and, more important, sustaining wealth than someone who has won the lottery.
You can take all the mystery out of wealth building. Anyone can take a prescriptive, step-by-step approach to eliminate financial hardship and build wealth of a million dollars or more. And I don’t mean just net worth; I mean cash flow- cold, hard cash in your pocket.
Wealthy people get to where they are not by chance, but by taking specific, tangible action. There is a very clear difference between the flow of money for most people, and the flow of money for someone who is wealthy. It looks something like this:
In the Least Cycle (because most people do it, but they end up with the least), wealth can never be created because all the money which comes in (through income), goes right back out to pay expenses- housing, food, credit card debt, consumer goods, etc. Even your home is a liability because it takes money out of your pocket every month, instead of putting money into your pocket. Compare it to the Cycle of the Wealthy:
In the Cycle of the Wealthy, a portion of the money which comes in (through income, which is usually a job when the process is started) goes to investing in assets (a definition of an asset is something that provides cash flow or capital). Those assets in turn produce more income, which goes back into building more assets, and thus creating more wealth.
Besides that, they structure their life to run like a business. They create entities (Corporations or LLCs) that they run all ‘business’ related expenses through before paying taxes, so it reduces their tax liability.
Creating wealth is as simple as deciding what Cycle you want to live in. If you live in the Least Cycle, you will never create wealth. If you live in the Cycle of the Wealthy, wealth is guaranteed.
That is why some people can make a lot of money, even a million a year, and still be broke. If they live in the Least Cycle, they are not wealthy. They’re still living paycheck to paycheck, albeit a very large paycheck, but they are not creating wealth.
The goal is to increase your income so that you can buy assets that will create more income, until this becomes a passive process and you create freedom to live as you want.
