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!
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