10 Wisdom-Based Wealth Creation Strategies

“It’s the business of your life…

And you’re the CEO!” Gala Gorman

Imagine you are Noah and God tells you that you need to build the ark. You might suspect that Noah was a bit skeptical. Could it really rain for such a long period of time that a small boat would be needed to survive the storm? According to the Bible, the answer is “Yes!”

So when I suggest you build your own chest, one of the financial variety, how much convincing will you need? Fortunately, this ark won’t require you to assemble a seemingly useless structure in your backyard and it won’t require a 1,000-year flood to be useful either. This chest will be something you can be proud of and will provide you with financial security every day of your life.

While any approach to creating financial security must follow the values ​​and needs of the individual, here are the top 10 wealth building strategies that I believe will ensure you can weather whatever storm life throws your way.

1. Use the AR-KTM Technique.

A. A is for asset accumulation. This may seem like a simple concept, but in today’s difficult circumstances it’s all too easy to spend everything you earn and more.

B. R is for Retirement Debt. Debts are not called liabilities for nothing. You have to work to reduce and eliminate debt when everyone else is focused on using every ounce of capital.

C. K is for Fulfilling Commitments. Once you commit to applying the ARK™ Technique, you must stick with it! You build confidence in yourself and others this way.

2. Prepare for the inevitable rainy day.

A. Understand the cycles of life. It is a fact of life that you will experience hard times; In a way, times like these are destined to set your course. Life’s challenges are much easier to face with financial security.

B. Maintain a positive AND realistic attitude. It may not seem like a positive thought to plan for a rainy day. I believe that planning and preparation are the most valuable tools you can use to deal with life’s problems.

C. Develop plans for your ARK. You need a plan. God gave Noah a “blueprint” to build on. You need a financial plan. What will your ark look like when it’s finished?

3. Recognize where your wealth comes from.

A. GUS is the source. Some call it “God”, some “Spirit”, others “the Universe”, and still others have developed their own term to relate to it. The acronym GUS (Universal Spirit of God) honors all wisdom traditions.

B. Give back to those who gave to you, spiritually and otherwise. You could consider this. Tithing is your way of demonstrating your faith in an endless supply.

C. Subscribe to the Universal Law of Use. This universal law applies to all departments of your life. Get rid of clutter and anything else that isn’t serving a purpose. One person’s trash is another person’s treasure.

4. Develop sufficient liquid resources.

A. Cash is king! I cannot stress enough the value of having readily available funds that can be accessed without a significant reduction in value. This is the “hull” on which your ark is built.

B. Calculate your cash reserve requirement. Do you know how much you would need to meet your minimum financial responsibilities over a six month period?

C. Define “liquid.” Liquid resources are assets that can be converted to cash without penalty or market fluctuation. You need a six month cash infusion plan that is easy to execute in an emergency.

5. Understand real estate investments.

A. Own your home “free and clean.” Mortgage brokers encourage you to borrow every dollar you can, especially with interest rates at record lows. With this approach, you’ll always make your house payments!

B. Use conservative values ​​for planning purposes. With real estate, values ​​can fluctuate dramatically based on factors completely out of your control. How much would you realize if you HAD to sell?

C. Are you prepared to run a business? Owning real estate (unless it is your personal residence) requires you to run a business that you may not consider a valuable use of your time.

6. Understand investments in the stock market.

A. Assess your risk tolerance. Investment advisers often discuss the concept of risk with their clients, but they don’t face reality. Investments come with a significant chance that the value will decline significantly.

B. Accept that the stock market is illogical. There are many “systems” available today that claim to make the market predictable. The truth is that there is not much logic behind market values.

C. Fund managers get paid even when they’re wrong. Most mutual funds underperform the market by 3%. This is partly due to the fact that money managers are paid handsomely whether they perform well or not.

7. Know the value of your income stream.

A. Build a salable business. When you’re ready to “retire,” will the work you’ve put in to build your business have lasting value, with or without you there? With proper planning, your business is a valuable asset.

B. Create lasting value from your career/work. If you’re not working your own business, you can take full advantage of the income stream from your paycheck and benefits. Take advantage of employer-sponsored programs.

C. Complement with investment income. Your investment strategies can generate additional cash flow if necessary. Depending on the phase of your financial plan, you have the option of adding usable resources.

8. Limit your “use” assets.

A. Assets that depreciate are necessities or luxuries, perhaps both. In most geographic locations, a vehicle is a necessity. Does your vehicle meet your transportation needs or fulfill a wish?

B. Know the hidden costs of expensive “toys.” We all have them, assets that are nothing more than adult toys. You need to know how much it really costs to maintain those toys.

C. Money buys experiences. When people are surveyed about what makes life more fulfilling, the answers vary. People consistently agree that they like to travel, dine, and be outdoors. It takes money to have fun!

9. Set goals.

A. Have a goal toward which you are moving. Without a comprehensive plan, you’ll have a hard time adjusting when faced with life’s challenges, financial or otherwise.

B. Define your wealth creation strategy. Once you know where you want to end up, you can determine what strategies need to be implemented to achieve your goals.

C. Embark on the journey. Just start! Realize that you will have setbacks, but you will never get there unless you start rowing in the direction you have determined you want to go.

10. Protect what you have built.

A. Buy insurance for predictable losses. Homeowners insurance protects some of your assets, but you must also consider the risk of losing your income stream. Life and disability insurance can provide additional protection.

B. Add layers of protection for unpredictable losses. There are many ways to protect assets from a rare disaster: a lawsuit or other event. Asset protection tools can help give you peace of mind.

C. Create a succession plan. Whether you own your own business or want to provide for your family in case you’re unable to, any effective financial plan must consider succession.

You may feel like a solid financial plan doesn’t leave room for fun or enjoying life’s pleasures. Rather, your plan should meet your individual needs and put you on the path to financial freedom. If you dream of driving a luxury vehicle or taking a cruise around the world, your plan should take costs into account so you know you’re creating a financial future that’s real and lasting, not just a “mirage.”

Albert Einstein (1879 – 1955) called compound interest the eighth wonder. It can work for you or against you. When you invest it works for you. When you borrow, it works against you! There’s a reason God told Noah to take a male and a female of each species aboard the ark…to multiply. That’s what compound interest does for you and your financial coffer. Creating a financial plan based on wisdom can help you put the eighth wonder to work for you.