Believe it or not, when I made my first million dollars, I was terrified. That is because I had no practical tips for maintaining my wealth. Any financial advice I found seemed complicated and unrealistic. That’s when I dug in and discovered how the super-rich stay that way.
This is what I found …
Wealth Tips to Fortify Your Finances
As I mentioned, becoming a “millionaire” made me uneasy at first – despite it being a goal I had always wanted to achieve.
Making money is the easy part of becoming wealthy, but I didn’t know how to keep it. I was so afraid of losing it all that people couldn’t tell I had money because I was so cheap!
Finally, I decided to stop living in fear and figured out this finance game. It’s not as scary as you think. In fact, there are only three wealth tips you need to know.
Create a Rock-Solid Financial Plan
This first wealth tip is probably one you’ve heard from everyone. There are countless articles and resources on the subject.
However, there is only one element that matters: How much money do you need to become truly financially free? More than likely, it’s a much larger amount than you originally thought. And I encourage you to take it a step further and aim for a number bigger than that.
But once you have a number in mind, the next step is to make the wealth you currently have keep growing on its own.
Don’t Spread Your Assets Too Thin
Out of all the wealth tips out there, the one people get wrong the most involves assets, but in two different ways.
The first way is they think that they can “save their way to wealth” with a 401(k). That is easily disproved by the fact that if it was true, many more people would be rich!
The second – and the biggest investment myth on planet Earth – is that you should diversify. Not only does this limit your returns, but it also complicates managing your finances. Put your eggs in specific, cash-flowing baskets – and then thank me later.
When it comes to wealth, there is only one element that matters: How much money do you need to become truly financially free?”
Find Ways to Reduce Your Taxes
Unfortunately, when you make more money, you must pay more taxes. Therefore, the last wealth tip I am going to give you is to find ways to reduce them.
How Big Earners Reduce Their Taxes to Zero
There are many ways to accomplish this: Certain assets can give you tax breaks. Giving to charity is another great way to reduce taxes as well. Plus, it makes you feel good. Regardless of what route you decide to take, use them to get any breaks you can.
Final Notes on These Wealth Tips
These wealth tips are purposely broad so that you can adapt them to your circumstances. That being said, some of you reading this article are putting the cart in front of the horse. What I’m saying is that you are too concerned about maintaining your wealth when you should be building it.
You need to be opening up the faucets on all the income flows you can.
However you come by your wealth, don’t do what I did and get scared. Develop your plan and take action and I promise you will be great.
