5 Pillars For Building Personal Wealth

Pillars For Building Personal Wealth

From the most complex to the simplest forms, we have talked a lot about creating wealth; through savings, through investment, through compound interest…. although we have already seen how the simple act of saving would not lead to financial success.

In this case, it’s Tony Robbins, author of  Money Master the Game: 7 Simple Steps to Financial Freedom, who puts it so incredibly simple that it even makes it look easy. And although it may seem like some very obvious advice, the truth is that in this set of obviousness there is a simple formula to increase our wealth.

That is, none of these points will lead you to financial success by itself, but applied all 5 simultaneously … it is another story.

1. Save more and invest the difference.

Saving can be one of the most uncomfortable parts for people. It is the pending subject of most individuals, but the truth is that, to begin with, it is the most effective strategy. Cut costs and be creative to spend less. We invest the extra part that we have saved so that the compound interest does its job.

2. Earn more and invest the difference.

As we have seen, if we are given a choice between saving and earning more money, we must always choose to earn more money. In fact, the key to creating any fortune is to find alternatives that will grow our income. Although it seems difficult, according to Robbins himself, if you really put your mind to it, you will find a way to earn more money; creativity to find it. once we make more money, we invest the difference.

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3. Reduce fees and taxes, and invest the difference.

It is not what you earn, but what you keep. Robbins talks about the American market, where he says most Americans spend more than half of their income on taxes (income taxes, real estate taxes, sales tax, etc …)

And the truth is that, for example, in the United States the situation is not very different. If you go completely legal, they crack you all over the place. And that is where the average person with expectations of creating wealth sometimes needs the advice of an expert in this area.

With respect to fees, Robbins is more about paying commissions on our money, whether we are talking about savings or investment products. Everything we save in taxes and commissions, we invest.

4. Get a better return on your money.

There is a huge difference between a 10% and 4% profitability. To get an idea, with a 10% annual return, we will double our money every 7.2 years, while with a 4% return, we will double it every 18 years. And there is a lot of difference between both options.

That is why knowledge of financial education is essential for our economic health.

But be careful, because we are aware that in the risk-return equation, many end up finding the opposite effect, and that is that by seeking greater profitability, they end up losing money.

5. Change your lifestyle.

You may not have to wait for your retirement to move to a cheaper country or city. Maybe at some point, we can sell our highly appraised home and buy a cheaper home. The same for the car and for certain technology products.

Robbins ensures that everything is a matter of finding a way to be more efficient with your income and savings and more creative in your way or lifestyle. Finally, one of the best investments we can make is in ourselves and our lifestyle.

And these would be the 5 simple tips that Tony Robbins offers us, and that without a doubt, at least in the first 4 is much of the secret that has been proclaimed over time. Now, reverse the difference.