Have you ever had a desire to be financially free and debt-free?
I'd like to take a moment to talk about the type of people that become debt-free
and financially free versus the people that become full of debt and have no
wealth.
Money circulates through the economy from those who value it least to
those who value it most. So if you have a very low value on wealth building,
you will tend to put your money into consuming items that depreciate in value.
And if you have a very high value on wealth building,
you'll tend to want to put your money only in things that go up in value,
an asset.
Most people don't know the distinctions and they just keep spending their money
on things that give them immediate gratification and fulfillment,
usually other people's brands that they live vicariously through those brands
because it makes them feel important.
So they go around and they'd rather instead of building their own brand,
live in other people's brands.
And that's okay that can help you leverage yourself in life.
But what most people do is they end up in debt.
The average person in the world will have at least 10% of their
gross income per year on credit cards, in the form of debt. It's insane.
I'm amazed at how many people. But if I ask people by the thousands,
how many of you want to be financially independent, put your hands up.
Everybody puts their hands up.
And if I ask how many are financially independent,
most of those people put their hands down,
unless I'm in an executive program with leaders of different fortune 100
companies or something.
And so what I find is the majority of people haven't discerned what's really
true in their value system.
The hierarchy of your values dictate your financial destiny.
If you have a value on immediate gratifying consumables that depreciate value,
and you quickly buy things for quick fix,
don't expect to be financially free and don't expect yourself to get out of
debt.
But if you have a desire to actually take the money that you've earned and take
a portion of it and put it into savings until you have liquid cushion to deal
with the volatilities of daily life and unexpected.
And then on top of that begin to actually put your money into assets and
investments that actually give you dividends and give you capital gains or give
you rental property income.
If you have a desire to put your money into something that actually brings you
money back, a return on investment,
now you're moving in the direction of wealth building and potentially financial
independence.
And the majority of people when they go and get themselves in debt,
they borrow money and they borrow money for things that go down in value and
burden themselves with debt that just stays with them and lingers with them
through many years of their life.
Instead of only buying things that go up in value and only buying debt,
using debt in something that gives a return.
So if you use leverage and debt at a bank, for instance, or lending institution,
to help you buy properties,
that go up in value and you then have people buy rental,
use that to as rental properties and they help pay off your debt,
and you end up with a net worth that's growing. Then that's a wise use of debt.
Debt is not bad or good. It's just how it's used. And if you use it wisely,
to go and appreciate more in value,
you're using other people's money to make you rich.
But if you just keep buying things that depreciate in value,
every time you get in debt, well, you're foolish, particularly on banks.
They have a fractional reserve process and they charge you very high interest
rates.
And if you basically get into high interest rates and buy things that go down in
value and you're constantly paying a debt, you'll never get out of debt.
And if you only pay the amount that the bank asks you to pay,
you're making sure they make the money instead of you actually getting out of
debt. So you want to make sure that you don't use debt foolishly.
You want to make sure that you actually buy things that go up in value.
If you really value yourself and you really value wealth building,
you're not going to want to put your money anywhere,
but something that's going to go up in value.
The way you spend your money is according to where values of wealth building is
on your value list.
If you have a high value on buying things and kids and kids clothes,
and kids' education and shoes and house and furniture and everything else and
way down at the bottom is wealth building, when the money comes in,
you're going to run out of money.
You're going to have more month at the end of your money than money at the end
of your month.
And you're going to spend it on all these other things that are more valuable to
you because you spend money according to what you value.
And if you don't have a value on wealth building,
it's going to go out of your hands and it's going to go into the hands of people
that value it. So if you don't have a value on wealth building,
don't expect to have it. It's not going to happen.
And you want to make sure that you really stack up,
I have six steps to wealth that a person can do that help you raise the value
of wealth building on your life.
And if you don't have a desire to serve people and build a business that serves
people, you're really saying, I don't really care about wealth building.
If you don't have a desire to make sure that the business is profitable and
managed wisely to where it has a profit,
you're not really interested in building wealth.
If you don't have a desire to save a portion of it,
and then invest a portion of it with ever greater degrees of leverage and
accumulate it and have a cause for it, you're really saying,
I don't have an intention of being wealthy.
If you don't know exactly where your total assets are, your total liabilities,
your net worth is, what lifestyle you want for financial independence,
what the average interest rate you can earn, what the inflation rate is,
what amount you need earning that interest rate against inflation and what your
strategy is to get those outcomes, you really are saying,
'I don't have a value on wealth building',
cause those are necessary to be able to have financial independence.
So where is wealth building in your life? Look at your life. It will tell you,
and if you'd like to change it, use the six steps to wealth to raise it up,
but don't expect to be financially free and debt-free,
if you don't have a value on buying things that go up in value and you keep
buying consumable items that depreciate in value as a compensation for you not
feeling great about yourself and not being fulfilled.
It's wiser to build a brand around yourself than live through other people's
brands.
Because otherwise you're going to be giving your money to all the people that
are going to get wealthy,
and you're going to end up with the money out of your pocket in other people's
hands. So value yourself, value wealth building,
and you'll change your life financially.