The Four Key Financial Behaviors to Building Wealth! November 12, 2008Posted by shaferfinancial in Uncategorized.
Tags: active investing, building wealth, cash flow machine, cash flow management, key financial behaviors, reducing taxes
I will keep this simple:
1. Cash Flow Management. Whether you are an employee or commission salesperson or own your own business, this is critical. There should be a permanent space between cash flow coming in compared to what is going out. Once this difference is an established habit, then you can weather the bad times with the good times. With this habit, you can understand and use debt as a tool. All those debt is bad folks miss this point. Good cash flow management leads to lowered risk leading to successful leverage leading to wealth.
2. Learn to become an active investor. No matter what your investing medium (real estate, stocks, options, stamps, etc.) become an expert in that field. Read everything you can find dealing with that investment. Learn how others have made money investing. Learn to ask the questions that amatuers don’t even know enough to ask. Don’t turn over your investments to anybody else, no matter how well they dress or how nice their office is or how big the companies they work for are. Only you will have your best interest at heart. Virtually everybody is intelligent enough to learn how to invest. No excuses, no fear!
3. Learn how to reduce your tax liability legally. I believe we should all pay our fair share of taxes. However, the key to wealth is to keep as much money as possible. There are multiple strategies and products that will allow you to avoid overpaying the tax man, use them!
4. Build a cash flow machine. Whether you are a life long employee (or plan to be), you need to build a cash flow machine. This can be a small internet based business or income producing real estate or stock/options trading or investment in a closely held business or consulting. The possibilities are endless. But discovering it should be your number 1 wealth building priority.