3 Building Blocks of Money
Money won’t make you happy. But neither will not having money.
While most of us were raised to believe that money is not the only element to happiness, we should all know that money is still necessary in order to maintain a comfortable living.
It is actually the lack of knowledge about money that is the cause of most people’s financial problems, or lack of success. Too many of us have consumed false data regarding money, finance, budgets, debt, and income that it is no wonder most people never accumulate much wealth.
Listen, I have been around people my whole life who spent all of their time thinking about how scarce money is. When in reality, it is literally just a currency printed by man. I have met people who buy things only when they are on sale, yet are still broke because they do not understand how to produce income. I have also met people who know how to produce income, but never learn how to manage it and therefore end up with none of it. With the correct information and mentor, these are mistakes you can avoid. And it starts with understanding the basic building blocks of money.
1. Income is King
The number one basic building block of money and path toward accumulating wealth is income. If you do not have new income, you are dead! I know this sounds basic, because it is, but a lot of people have this confused. I run into people every day who say, “I need to save more money.” Let’s be clear, you will NOT save your way to wealth. If you do not have income, there will be no money to save, no money to invest, no money for retirement and no chance of wealth. Income is king!
I spend 95% of my time on income, and 5% of my time on expenses. Without income, you cannot grow your business. You can’t advertise your business. You can’t grow a family, heck you wouldn’t even be able to take care of yourself (the most important person) without income. You can’t hire people, and you definitely can’t afford to buy a new business. That would take new income.
Begin focusing on incremental increases. Although it is marketed fairly often, there is no “get rich quick.” You will not go from making $50k a year to becoming a millionaire. Do the math.
Understand that there has to be increments. Start to pay attention to ways you can take your $4,000 and increase it to $4,400. How can you get just an extra $100 a week? Who do you need to see and who do you need to call, to get that $100? Eventually, you will be asking yourself, “How do I get from $15k to $20k?” Just keep your attention on doing whatever is necessary to get those increments.
2. Stay Broke
Some of you are doing this without trying, am I right? The holy grail of income building truly is income, yes, but surely you know you cannot build wealth with excessive spending! You must become very familiar with the decision making process when it comes to price vs. value, so that you can spend less on things that won’t produce you more income, and more on the things that will!
Staying broke takes discipline, commitment, and the ability to decipher value based decision versus price based decisions. My mistake was spending frequent small sums of money on things such as clothes, entertainment, dinning out, and beer; key word being frequent. Although it may be necessary to spend money on entertainment, etc., let me assure you, there are better ways to invest in yourself! Spend time and money getting around people, building a network. Be around people that have the ability to take you one step closer to where you want to be. I have invested in countless groups, communities, events, books, and self-improvement courses.
To get where you want to be with your finances, you’ve got to start focusing on your money. Learn how to use debt and credit for the right things and not the wrong things, how to start building your income, and how to build it in increments. This requires a certain mindset.
3. Money Mindset
Out of sight, out of mind! At least once a month, set aside some time to pay attention to your money. Sometimes I look every day. If you are not paying attention to it, you can’t expect to have it because money follows attention. Money is like a jealous lover, if you do not give it attention, it will go live with someone else who will.
Most of us are brought up worried about money. Worry stems from uncertainty. Uncertainty stems from lack of confidence. And lack of confidence stems from lack of competence and knowledge. That is how it works. We weren’t taught money in school, and we damn sure weren’t born knowing. Listen, you cannot afford to be an amateur when it comes to money. Your future depends on it!
There is no shortage of money; there is a massive abundance of money on this economic planet. You just have to understand how to play the game. And worry is an indication that you are on the wrong end of the game. Ditch the poor mindset. Money is everywhere, just look around. Pay attention to the cars, the tires on the car, the pavement, the buildings, the people, their purses, watches, clothes, shoes, etc., all of that is money!
The only shortage of money on this planet is in your own mind. But it isn’t your fault. I encourage you to study the concept of abundance and opportunity! I also challenge you, starting today, to start paying attention to your finances. Learn to stay broke no matter how much you increase your income. Learn to stop worrying about money by becoming a pro, not an amateur. If you have dreams of getting rich, becoming a millionaire, having financial freedom, and leaving a legacy for yourself, leave some feedback on this article.
About the Author: My name is Avery Jackson and by no means do I have this all figured out. I started working when I was a sophomore in high school. I have worked in maintenance crews, sold cars, started my own business, and currently sell insurance. It wasn’t until I met an international sales expert, by the name of Grant Cardone, that I truly started to think this way and in terms of abundance and opportunity. I’ve learned many things from this man and it is from his teachings that I wrote this article.
