Today’s Financial Strategies
Many people mistakenly believe that wealth is simply having lots of money, but there are many who are very rich who do not live a true wealth lifestyle. At Thrive Team, we know that true wealth is not only about having money, but having the time and freedom to choose what to do with that money. True wealth lends itself to creating purpose and significance and living the fullness of life.
For decades we’ve been told that the way to wealth is to go to school, get a good job in a company that will take care of you, put in the years, and retire comfortably on your pension or 401K. But how is this working for us? The truth of the matter is that this ‘industrial age’ thinking is no longer relevant—and we see that in the financial reality around us. Most people today live paycheck to paycheck and average consumer credit card debt is more than $8,000 per household. And, if this is how we’re living day to day, what does that mean for retirement? The numbers are, sadly, quite bleak.
Current statistics show that out of 100 people who reach retirement age:
What if there was a better way? What if instead of working for 40+ years and hoping for a good retirement, you could create a true wealth lifestyle in less time while living a life of significance instead of survival? The good news is there are new strategies for today. At Thrive Team, we’ve found the following 10 principles to be game-changers. These aren’t just thoughts or theories, they are proven principles, supported by financial experts and in practice by those who are choosing to create their own positive financial reality. We invite you to read through them and begin incorporating these principles into your financial life today to create true wealth.
1. You own your wealth situation. Responsibility = ownership. When you take true ownership of the wealth situation in your life, it will change how you believe, how you think, and how you act toward creating wealth. Instead of treating your wealth casually (or even carelessly), or giving responsibility to someone else (such as your spouse, boss, or company), or leaving your wealth up to chance (can you say ‘the lottery strategy’?) choose instead to actively create the wealth reality you want for yourself.
2. It’s about more than the money. As we said before, true wealth is about having both the money and the time to live life how you choose. It’s about creating significance and purpose in life. And all of this comes back to one simple question. Why? Why do you want the wealth? The answer to this question has been referred to as the Big Why. If you can’t answer why you want the wealth and tie it to some purpose in life that is bigger than the money, then you’ll never create wealth. Get clear on the why and nothing can stop you.
3. Be in business for yourself. From tax savings to unlimited income potential to pursuing your passions, there are scores of reasons why experts agree that being in business for yourself is a sound financial strategy for today. Love your career? That’s okay. Simply having a side business can yield many of the benefits of business ownership. But not all businesses are created equal—so take care and choose wisely so that you don’t simply ‘buy’ another job for yourself.
4. Create leverage. Leverage is a beautiful concept. Let’s say you have a huge superbowl party at your house and each of your 100 guests consume 5 bottles or cans of their favorite beverage and left them sitting wherever they were when they finished drinking them. Which would be the most efficient way to clean the mess: Going through the house after everyone leaves and picking up the cans and bottles yourself? Or having each person grab five bottles or cans and throw them away as they go? Obviously the latter. That’s leverage. Leverage is about efficiency (and so much more) and when it comes to building true wealth, you can leverage your money, you can leverage your time and you can create win-win scenarios by leveraging with people.
5. Create recurring income. With recurring income, also known as residual income, you do the work once and get paid multiple times for it. Think about authors—they do the work and write the book and once the book is published, they receive royalties for years as the book continues to sell. The same is true for musicians with their albums or actors with their movies. Can’t see yourself writing a book or acting in a movie? Then there are many other ways of creating recurring income—from consumable product sales to rental properties. The bottom line is, when you create recurring income, you create a stream of income that is no longer tied to your time which makes this a brilliant strategy for creating true wealth.
6. Have multiple streams of income. This is the only financial safety net of today. The industrial era taught us to be cogs in the wheel: simply show up, punch the clock, put in the hours, collect your paycheck and go home. In our changing world today, lay-offs, company closings or differing regulations can very drastically and very quickly affect your income stream. The best way to deal with this is to prevent being in a situation where your entire livelihood depends on just one source of income.
7. Eliminate debt. At Thrive Team, we don’t necessarily believe that all debt is bad debt, but there is no doubt that being debt-free reduces stress and empowers a more free life. If you are currently in debt, seek out intentional and strategic plans for systematically eliminating the high interest debt in your life. And, as a general rule, always avoid putting consumable items on a credit card—especially if you carry a balance. Many times you end up paying a long time and a lot more for something that was used and gone a long time ago.
8. Wealth comes from assets, not paychecks. People with a poverty mindset seek paychecks so that they can buy stuff. People with a true wealth mindset build assets so they can live freely. Assets are simply items you own that have saleable value. Many assets, such as a business or investments, can even pay a recurring income—and again, an income stream that is not tied to your time is key in creating true wealth.
9. Make saving automatic. Saving is becoming a lost art in our world today, but it is such an important part of creating true wealth. The best plan of action for saving money is to make it automatic. Use bill pay or automatic transfers to take a certain percentage of your income and move it into an interest bearing savings account or safe investments. Saving consistently and automatically allows you to build an emergency fund, secure your retirement, and can even empower you to acquire assets to further build your true wealth.
10. Tithing and giving back lead to increase. When it comes to tithing and giving, at Thrive Team we believe that where money flows, more money goes. It is a universal truth and even a Biblical promise: When we give to those in need or to organizations who wisely and positively impact our community and our world, our wealth will increase.