We all desire to become financially wealthy. I am confident in this because I have never met someone who desired to be broke. Even those who ridicule the wealthy only do so because they wish they too were wealthy and these ridiculers feel it is unfair. No matter who you are, becoming wealthy will empower your life. Here is the problem: Somewhere along the lines we were convinced that becoming wealthy is a 40-year game. We were sold on that fact that it takes time. I am writing to you today to inform you that time is a choice and to empower you to become wealthy in the next 4 years.
Every question I get is centered around this topic. No matter what, it is a variation of "I've decided to get serious about my life/finances and I want to know what my plan should look like." Today I am going to give you the plan that is applicable to anyone who is making a change for the better and intends to build wealth! Before you read on, I want to admonish that you can have results or you can have reasons. You cannot have both. 98% of those who read this will get to the end and think something along that lines of "that's cute but it doesn't actually work that way because of _________." If you are that person, this kind of thinking and self-talk is why you are where you are and why you probably won't ever move forward. There is another group of people, the other 2%, that has realized their lack of results invalidates the correctness of their thoughts and beliefs and therefore they cannot trust the reasons and doubts that rise. Now that I've got you in your 2 separate groups, let’s get started!
First things first, go through your house, garage, storage unit, workspace, and any other location you store the things you own. With a notepad and a pen label everything (literally everything!) on a 1 to 5 scale.
1: I don't need it and its costing me money by being here.
2: I don't need it and I should not have bought it.
3: Maybe I need it but it is negotiable.
4: I need it because it is vital to living.
5: I need it because I will use it to generate income.
Sell everything that is a 3 or lower. Don't worry about the mechanics. Go on Facebook Marketplace, Craigslist, Etsy, your pawn shop, make up a price and sell it. Don't even worry what you get for it. You're not going to get rich off these numbers. What you are doing is creating a flow of income and outgo. If you're not wealthy it is because your money is stagnant. You don't have enough incoming and outgoing activity with your finances.
Now with the excess cash you've made I want you to do a few things.
- Subscribe to audible.com. Begin listening to your first book on selling immediately. No books on investing or other novelties. You're done learning information you're not yet ready or willing to apply. That was the old you.
- Buy 3 books on selling. One of these books must be Sell or Be Sold by Grant Cardone. You may choose the other two if the authors are reputable and good at what they do. Read all 3 books this weekend. No tv, movies, or time wasting this weekend. You're in an emergency condition financially and you don't have the luxury of wasting time if you're serious about your goals.
- Take the wealthiest person you know out to dinner. You need to hang out with different people. This is a start. Ask great questions. Learn about this person. Make sure dinner is nice and make sure you tip well! The wealthy version of you does this regularly and you can get started now.
Now I want you to look at your past 30 days of expenses. If you don't know what they are, this is one of the main reasons you aren't where you want to be. You will now begin expending money with intention. Go find all your credit card statements, bank statements, and receipts from the last 30 days.
You will rate your past 30 days of expenditures on a 1 to 5 scale just like you did with your stuff.
1: I REALLY shouldn't have bought it and I can return it.
2: I should not have bought it and I can return it.
3: Maybe I need it but I could return it.
4: I bought it because it is vital to living.
5: I bought it because it was needed to generate income.
Go return everything below a 3. Take it back to wherever you got it from. This is what 30-day return policies are for. You just increased your income again! You probably did not make as much on this round as you did on the last one but you should have a few extra dollars now. I want you to use the money you got from returning these items and I want you to buy a nice thank you gift and deliver it to the person you took out to dinner the other day. You may be asking: "Why do you keep having me spend all of the money I make from selling and returning things?" That is a great question! By hanging on to that money you will get comfortable and settle back into your old ways. I call this The Go Broke Principal. By getting rid of the money you are not allowing yourself room to slow down and you are investing it into future opportunities.
Now go to your boss. Tell your boss you desire to increase your income and ask if there are products and services you can sell that will benefit the company and pay you a commission. No smart employer will turn this down. In fact, if your boss is not open to this or if you work in a company where there are not products and services being exchanged with the public I would honestly recommend searching for a new place to work. You're talented, committed, and have goals. You are what every employer is looking for! Now if your boss did give you a list of products and services you can sell, go sell them. Talk to everyone you know and when you run out of those begin talking to everyone you don't know. You won't like it, it will be uncomfortable, you will get rejected, and that's okay. It's better than being broke and complacent. Go exchange your company’s products and services abundantly until your income begins increasing.
Every increase you get should be immediately re-invested into your own learning & education, other people in your network that can assist you in your goals, and marketing yourself and your product. That's it. 3 things. Keep reinvesting every penny until you begin noticing a 40% margin in your paycheck. What this means is that when you get a paycheck, after you pay taxes and bills, there is still 40% of that gross paycheck left over. If you aren't experiencing this phenomenon you need to keep your head down until you do. Earn income and get rid of it on personal development, networking, and marketing. That is your cycle until you see 40% of our gross paycheck leftover every month.
Keep asking your company how you can earn extra income. Do not start a part time business or get a second job if you don't have to. Earn income through a second, third, and fourth source that is parallel to your primary income. This will keep your time and energy focused in on one area and be most effective.
If you have that 40% margin, setup a sacred account. Either a low accessible bank account, a CD, or a Bank On Yourself life insurance policy. This is where you will put that extra money. This account "doesn't exist'. You don't touch it for any reason and don't even acknowledge its existence until there are at least 6 figures in there. The hustle doesn't stop you must earn, continue to invest in yourself, your network, & marketing, and save 40% of your gross income into your sacred account. Rinse. Wash. Repeat. You will do this for probably 2-3 years.
Once you have $100,000 or more in this sacred account you will want to look at potentially investing. What you will realize is that once you have $100,000 on the line you will be pickier about your investments. In addition to that, because you earn so much income you will compare the income and ROI on each investment to yourself and this will cause you to be even more picky. These are good signs and it means you are on track. If you've could save 6 figures it means that you earn more than that annually and a smart investor is going to look to maximize their best investment before they look at other possibilities.
At some point, either an investment will have such great cash flow that you purchase it or the economy will crash to the point that an investment is too cheap to pass up on. These are your two green lights. Don't invest just because everyone else is. Wait for the right opportunity and earn income while you wait. The only thing that can happen is your sacred account will grow.
I MUST add this in here: Do not for any reason spend any of your savings on a house. Only put money into things that produce an income.
A $100,000 investment should pay you $1200/mo. or more in net income. If you wait until year 4 you should have several hundreds of thousands in your sacred account. Let's imagine you have $250,000 put away. You can leverage that money 4 dollars to 1 and go invest in real estate. With $250,000 you'd acquire $1,000,000 worth of real estate and you'd earn an income of approximately $2,500/mo. from your new investment, plus your earned income which is easily over 6 figures, and you own a $1,000,000 asset. You're in the upper echelons of wealth in America. You aren't safe yet but it's 4 years and you've got a $2500/mo. minimum income for life!
From here, go increase your income again from your earned income and from your new asset. Save as much money as possible (40% of your gross income) to replenish your sacred account and then look for the next investment. By 10 years in if you don't quit you can expect your assets and your passive income to more than double. You may find yourself an executive at your company, owning your own business, or even quitting your job to become a full-time investor.
I want to stress that literally anyone can do this. It does not take any money to start. It takes commitment, creativity, and courage. If you have those 3 things, the money will show up.
If you'd like a custom plan like this drawn out for you then contact one of my Wealth Coaches. This is what we do! Contact me to set this up!
Own Your Potential!
Jerry Fetta
Jerry Fetta is a husband, son on Yahweh, Entrepreneur and owner of 5 privately held companies. Jerry lives in Alaska with his wife and 2 dogs. His no-nonsense approach to business, finances, and life speaks truth and provides clarity to his clients and followers. His personal mission in life is to empower millions of leaders to own their God-given, ultimate potential to begin creating a life by design.
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