Do you feel like a total baller because you make a bunch of money each month? Are you living high on the hog because your business is making 6 or even 7 figures? That’s great! Hats off to you. But… we’re here to burst your bubble a little.
While you may be making a really great monthly or yearly income, and you are totally killin’ it at what you do, income is not the same as wealth. Income is literally what is coming in each month from your work or revenue streams. But wealth is the “abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.” Basically, they’re what you already have that you can use to get by — and thrive.
So, this episode, we’re getting into why income is not wealth and how you can actually start building true wealth so you can feel really rich.
[00:48] The perfect example of a business owner who relied on income, not wealth
[03:20] What happens when people hit the 6- or 7-figure mark
[03:45] What “wealth” really entails
[04:05] 4 scenarios where you’re not truly wealthy
[04:56] The risk of assuming people are wealthy when they have a lot of money
[06:33] How we define wealth
[07:53] The importance of protecting your wealth with insurance
[09:56] How to transition your business income from money to wealth
[10:54] Why you should treat your income like a well
[12:24] Ways you can restructure your business to move beyond working IN it
[13:04] Diversifying businesses, investments, and saving strategies for maximum wealth
First and foremost, we want to talk about a few scenarios we see play out time and time again with clients. They are making a ton of money (yes, sometimes over a million a year!), saving a bit of it, and really rockin’ in their business. But we tell them they ain’t that wealthy. Why??
Because they usually fall into one of four categories:
So, if all of the scenarios above don’t make you wealthy, even though you’re making money, what does?
In this episode, we get real clear on what we mean by wealth. Wealth is your net worth, straight up. It is your total assets minus your total liabilities, and the more assets you have than liabilities the better. Notice how we said assets, not income. Assets include things like stocks, bonds, property, businesses, art, etc. How do you get these assets? By having income, of course. But you need to be putting that income to use by saving and investing in assets that keep you wealthy well after you stop working for a paycheck.
If you’ve read this far, now would be a good time to pop over to the podcast and listen. Because we drop a few actionable steps you can implement to build (and protect) your wealth. Things like:
You should also be doing all of it if you want to truly diversify your income and build wealth. So if you want to dive into this topic and really figure out how to move from “money-rich” to “wealthy-rich,” tune into the episode. And then go build dat wealth!
This material is for general information only and is not intended to provide specific advice or recommendations for any individual.
Check the background of your financial professional on FINRA’s BrokerCheck.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Advisor Launchpad to provide information on a topic that may be of interest. Advisor Launchpad is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Copyright 2019 Advisor Launchpad.
Securities offered through LPL Financial. Member FINRA & SIPC. Advisory services offered through GWM Advisors, dba Toujours Planning, a registered investment advisor. GWM Advisors and Toujours Planning are separate entities from LPL Financial.
The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: AL, AR, CA, CO, DE, DC, FL, GA, ID, IN, LA, MI, MS, MO, OK, TX, VA.
While we work with clients nationwide you can find us at:
Office: (337) 602-6740
1 Lakeshore Drive Suite 1200
Lake Charles, LA 70629