3 Instant Wealth Hacks

Everyone has their own definition of wealth and being rich. Money is very personal and everyone has different goals, so it makes sense.

Here is a different definition of wealth for you: wealth is the total number of days that you can continue living your current lifestyle without having to work.

I use this definition with clients frequently. How many days is it for you?

When it comes to a full financial plan, it is very easy for me to help my clients create instant wealth. Now that I have your attention, I hope that you continue on reading to see how all of this works together.

To create instant wealth, you need to have 3 different policies. Disability Insurance, Critical Illness, and Life Insurance. Here is why they work to create instant wealth.

1. Disability insurance protects your income in the event you can’t work due to illness or injury (depending on the coverage you purchase). If you are an employee, you might have a limited form of disability through your employer, and if you are self employed, you definitely need this because WCB just won’t cut it. If you can’t work, your disability is going to kick in and you are going to receive an income, hence, instant wealth.
2. Critical Illness also protects your income if you were to get sick. Plus, depending on the illness, there are often a lot of expenses that people don’t think about until they have to pay for it. It can be expensive! Time of work, additional expenses, possibly a change in lifestyle. With this policy, you get a payout to help with those expenses, hence, instant wealth.
3. Life insurance can be used in a couple of different ways. It can be used as an investment account, which is great because this starts to build your wealth, tax free, until you have enough and don’t need Disability or Critical Illness. Or it can just be used as a wealth protector for your family in the event you pass away. I had someone tell me once that they didn’t need life insurance because they weren’t going to die. I’m not sure how they became immortal but I did immediately exit the conversation. I wasn’t sure if they were a vampire or something, and although being guaranteed a long life is awesome, I’m not sure about immortality and didn’t want to take the risk of being in the presence of an immortal for too long. It never ends well in books or movies so I wasn’t taking my chances.

With these policies set up and your financial security in place, I also set up some investments for you. This is to not only grow your wealth but to create another income stream and riches. The average “wealthy” or “rich” person has multiple income streams. I help my client create 3 different income streams, and then the rest is up to you. Actually, it’s all up to you, I just help facilitate it and help you get their faster and immediately.

These aren’t “get rich quick” schemes. I hate to tell you, there is no such thing. These are good financial wealth building habits, and the better your habits, the more your wealth will grow.

As the old saying goes, “when you change the way you look at things, the things you look at change”, hopefully this changes the way you look at various financial planning strategies, what wealth means, and that you have the ability to control it all.

I am looking for people who want immediate wealth. Is that you? Or do you know someone who does? I would love to get together and talk about how I can help make that happen right away.

3 Ways to Change Your Financial Situation TODAY!

Over the last almost 10 years of working with people and money, I have experienced and witnessed so many different things. Different money attitudes and beliefs, different financial situations – good, bad and especially the “I want that client’s financial portfolio”, different goals and objectives, and certainly varying forms of financial fear.

You have all heard “The rich get rich and the poor get poorer and the middle-class struggle in debt”, right?

Why does it work that way?

First, rich people have a different mindset. They view money differently than most people do. They talk about it differently, they use it differently, money is a different game to them altogether.

Second, rich people are more financially literate. They are eager to learn more about it and they have a whole team working with them to manage it from financial people like myself, to accountants and lawyers. Don’t be fooled in believing that they do it themselves. Not even Warren Buffet or Bill Gates manage their finances alone.

The gap between the rich, middle class, and poor happens because the subject of money is taught at home and not in schools. I often hear, “I wish I would have learned that in school!” In fact, if I had a dollar for every time I heard that, I would be rich already! But schools are designed to teach scholastic and professional skills, not money skills. That leaves us with learning our financial skills from our parents.

If your parents are among the rich, then lucky you! You are being passed down a financial mindset, financial literacy and a financial team to help you get ahead faster in life. And by rich, I mean, have more than a few million in assets, cash flow, and are at least in the top 5%.

For the rest of you, which is where the majority of people fit – 95%, you are learning from your parents the exact same mindsets as your parents. It’s not that your parents are trying to hurt you or that you as a parent are trying to hurt your kid, this is just the way it works. The following phrases are likely something you have heard your parents say, or you have said, at some point in your life, if not recently. It’s time to change that.

Here are 3 things that will help you change your financial situation today:

1. Stop saying “I can’t afford it” and start saying “How can I afford it?” Everyone is guilty of this and I hear it way too often. By saying “How can I afford it?”, you put your brain to work. It doesn’t mean you should buy everything you want; it means you are starting to think of ways to do it and you are exercising your brain. By saying “I can’t afford it”, you are automatically shutting down any creativity and problem solving skills. It’s a sign of laziness. Just like working out and eating healthy increases your chance of health, proper mental exercise increases your chance of wealth.
2. Stop saying “I’m poor” and start saying “I’m broke” instead and even go a little further to add, “I am rich”. Poor is an eternal state, whereas broke is a temporary situation and lots of extremely rich people have had periods of time when they were broke.
3. Stop saying “The reason I’m not rich is because I have you kids” and start saying “The reason I must be rich is because I have you kids”. Interestingly enough, I am guilty of saying the first one and only thinking the second one. Words are so powerful and we need to choose them wisely.

Positive thinking alone and choosing your words correctly are only the beginning of fixing your current financial situation. There is education and action as well. Financial literacy is at an all time low. Outside of our parents, it is taught by the banks and the government and they are way too corrupt to be teaching people about money. This explains the why the majority of people’s financial situations are what they are.

Money is only one form of power and security. Financial education is much more powerful. Money comes and goes, but if you know how money works, you gain power over it and can begin building wealth.

Going Broke Safely

The stock market is at an all time low for the number of investors. Before the Financial Meltdown in 2008, 62% of Americans were invested. Today, only 54% of Americans are invested in the stock market. That means that that 46% of people aren’t invested. Out of the 54% that are invested, the majority are just barely invested.
There are many reasons people don’t invest. For example, low income households are less likely to invest because they don’t have the free capital to do it. Other’s might not invest because they have a lot of debt and are more concerned about paying that down instead.
What about the rest of the people that aren’t investing?

They are going broke safely.
Fear is the biggest reason people don’t invest.
People are scared of another “crash” like 2008. While it’s hard to have your money in the stock market and watch it’s value go down, it is the best time to start buying! It’s just stocks going on sale. For most things in life – clothes, shoes, a new motorbike, a car – we try to find the best deal possible. For the stock market, we wait till it’s going up before we are comfortable investing. Even though there might be short periods in time when the stock market goes down, the stock market always goes up. There has never been a time in history that it hasn’t gone back up.
If you had of invested $10,000 in March 2009, today it would be worth $40,000.
In 2008, the majority of people were pulling their money out and trying to prevent losing any more. Those are the people that lost money. Their money wasn’t in the markets to recover. The few that started putting more money in, those are the people that made a lot!
The best thing that could happen in the next few years is another crash. It’s going to hurt watching your money that is in there. But with a good mindset and a steady strategy of investing more, that is when you will be able to catch up and get ahead.
The most recent example is at the end of 2018 and the markets went down. For my clients that kept their investment strategy going, they have earned 10%. For people that didn’t buy more, they are at a break even point now.
Not investing has far more negative consequences than investing:
– If you hold your money in bank investments, earning only 1 to 2% per year, you are losing money to inflation which is running about 2 to 3% per year. You are actually losing money, and this is what I call going broke safely.
– If you aren’t investing because you are concerned about paying off debt, you might still have debt in 10 years and still not have any money. I love putting together a good debt/investment strategy! Debt can be a “lifestyle” when taken care of and used properly. Sounds completely contradictory to everything most of you have been taught, but it’s true!
– If you don’t invest, you will still be no better off financially in 10, 20, 30 years from now. Don’t you want something to show for all your hard work?
Now that you know a few of the downsides and that not investing is the equivalent of going broke safely, there is no better time than right now to get started. Markets will always go up. As of this moment, you are actually buying them on sale. If debt is holding you back, there is a plan for that. If lack of additional funds is an issue, there could be a plan for that too. If fear is a problem, well there is some protection from the downside that I often set up but the only fear there should be is not investing. Let’s grab a coffee and discuss a plan for you!

Your Life as a Statistic

There are 2 paths that we can take in our lives. The first one is the one that we have created so far. Our families, our financial situations, our health, our hobbies. It is good, comfortable and predictable. In fact, it is so predictable that for 80% of people, scientists can project with amazing accuracy what the trajectory of what our lives will look like.

Then there is the 2nd path. The one that is scary, uncomfortable, unpredictable, and with more than a few problems along the way. It doesn’t sound very appealing does it?
Take a look at these sobering financial statistics:
“….. take any 100 people at the start of their working careers and follow them for the next 40 years until they reach retirement age, here’s what you will find:

Only 1 will be wealthy
4 will be financially secure
5 will continue working, not because they want to, but because they have to
36 will be dead
54 will be broke and dependent on friends, family, relatives, and the government to take care of them.” Hal Elrod; US Government
Having been a Financial Planner for more than a few years, I see these statistics manifest way too often. They are much more predictable than you think. Out of 100 clients, I don’t know which 36 will be dead, of course, but it is easy to spot the differences between the top 5 and the bottom 54.
What is different between the top 5 and the bottom 54? Lots! This is the first newsletter. Over time I will discuss different ideas, strategies and mindsets that really separate the two groups of people. I don’t claim to be a great motivator, great leader, or even very inspirational. The top 5 don’t actually need that. The top 5 are looking for opportunities along the second path, and that’s where I come in.

The top 5 people have a different attitude about opportunities and money in general. They treat money differently. They have a strategy and focus on long-term instead of getting stuck in the moment. They use debt efficiently and have it work for them instead of against them. They use tax strategies to keep more money in their pockets. They respect money on a higher level and take care of it differently; that’s why they have more of it. It’s not economies, stock markets, or bad luck that cause a lack of money. They use those problems to their advantage, know those problems are short term, and turn them into opportunities that the bottom 54 miss out on.
The traits, mindsets, and qualities of the top 5 can be learned by anyone. The top 5 did not become the top 5 because they naturally possessed these skills. Regardless of what end of the money spectrum you are on, there is a chance that you learned your current money skills and attitudes from your parent’s, friend’s, community or co-workers, even if unknowingly. If any of them are multi-millionaires, then great, you have likely picked up on some of the right mindsets just by association. If they aren’t, then you might have picked up on some negative money beliefs that you aren’t even aware of.
The best thing about all of this is, it doesn’t matter what situation you are in financially, how old you are, or what your current views of money are; you can start where you are and you can change it. The sooner you start, the further ahead you will get. The key is, as Tony Robbins says, “taking massive action”. The expression “window of opportunity” carries the truth that opportunities only stay open for a few, brief moments. Hesitate, procrastinate, and the window closes shut. Unfortunately, the bottom 54 don’t recognize the path they are on until later in the game.
There will be lots of tips and strategies and mindsets coming in newsletters as time goes on, but if you are wanting the opportunity to start earlier, let’s get a coffee. There really is no time like the present!