Have you ever heard the saying “If you fail to plan, you are planning to fail”?
In this episode of the Wealth Amplifier, George Antone unpacks the most critical phase in your wealth journey: PLANNING.
Create Clarity on Your Wealth Journey
If you’re like most investors, you’ve spent a lot of time looking for the “one thing” that will yield the profits you need to stop worrying about the future.
You have likely tried your hand at different assets, including real estate, stocks and bonds, and maybe even riskier assets like cryptocurrencies. You might have read multiple books, taken courses on mastering specific assets, and listened to all the “experts” trying to find that one magic bullet. You may have had a few wins, absorbed a few losses, and built up some capital over time. However, the one thing this approach will never give you is peace of mind.
Take a moment to think about how much time you spend worrying about money. How often do you lie awake at night calculating how much you need to pay off your mortgage or put your kids through college? How often do you worry about maintaining your lifestyle when you retire?
Now, imagine that instead of worrying about your financial future, you have a clear, implementable plan that will get you from where you are to where you want to be with absolute clarity. Imagine investing the time and energy you spend worrying about the future implementing this plan. Imagine living your life with clarity on your financial journey.
George Antone and the Fynanc team specialize in removing the noise and helping investors like you take the guesswork out of building wealth. George explains how to achieve clarity on your financial journey in this blog series.
Choose your Destination
A journey of a thousand miles starts with a single step. But before you take that step, you must decide where you are headed. The same applies to your wealth journey. In part 2 of this series, George explains the importance of choosing your destination before starting out on your wealth journey.
First, decide on the lifestyle you want to live. Then, calculate how much money you need to maintain that lifestyle over time, considering inflation. You can set your passive income goal because you know exactly how much money you need. Then, look at how much time you have to achieve your goal. Next, calculate The Gap, or the difference between your current passive income and your passive income goal.
Armed with this knowledge, you can start working on the most critical aspect of your wealth journey – Your Plan.
Action Item: Download the FREE interactive PDF above. Document the lifestyle you want to live, your passive income goal, The Gap, and commit to closing that gap.
Develop your Plan
“If you’ve ever found yourself on a badly planned vacation, you will know it’s stressful, counter-productive, and often costly. Why, then, would you embark on the most important life journey (your wealth journey) without a solid plan?”
The problem for most investors is that they start their journey without a destination in mind. It’s a little like arriving at an airport and buying a ticket for the next plane out without asking where it’s headed. Once you land in your unknown city, your main concerns will be your next meal and finding a place to sleep. While some would call this “embracing the spirit of adventure”, most people would find this an unpleasant, stressful experience.
Unfortunately, most investors find themselves in this position. Having started without a plan, they feel lost and go from one deal to the next without direction or certainty about the future.
To avoid this, you need to plan your wealth journey meticulously. There are four steps to developing a solid plan to achieve your financial goals faster, safer, and with more certainty.
Step 1: Master the Wealth Principles
Certain unchanging, universal principles govern how modern economies function. These are the building blocks of our money system. Investors who understand these wealth principles know how to make the system work in their favor.
At Fynanc, we believe in empowering our members with this knowledge so they can make well-informed decisions about their money.
Once you understand how the system works, you will take much of the guesswork out of your financial decisions.
Step 2: Assets
Once you know how the financial system works, you need to find out where you stand.
This means taking on the sometimes daunting task of assessing your balance sheets. You need to establish how many assets you have and their current market value. You must then account for your liabilities and balance them against your assets.
This can be an uncomfortable exercise, forcing you to confront the truth about your finances. However, the sooner you understand your strengths and weaknesses, the better. Fortunately, there are many ways to optimize your balance sheet. Remember, you can only correct a problem you know about, so don’t procrastinate.
Step 3: Strategy
Once you understand how the financial system works and know where you stand within the system, you are ready to look at financial strategies.
The key to building wealth is acquiring the right income-producing assets and using the proper financing structure in the correct sequence to optimize your balance sheet over time.
The mistake most investors make is focusing on strategies to deal with a specific asset class, such as real estate or the stock market. This is called the asset-first approach. The problem with this approach is that it’s not necessarily your assets that build your wealth over time. How you structure your deals will determine whether you will be on the paying or receiving side of the financial system.
At Fynanc, we teach our members to use a “finance-first approach.” This is the approach that large financial institutions use to ensure they remain profitable regardless of market conditions. Once you use finance-first strategies, you will no longer be focused on simply closing your next deal. You can predict exactly what your balance sheet will look like in a year, in five years, or twenty years, regardless of what happens in the economy.
Step 4: The Plan
Armed with your knowledge of the financial system, your position within that system, and the right strategy, you can start working on your plan.
This plan serves as your roadmap to get you from where you are to your destination in the allocated time. To achieve success, it’s essential that you set achievable, measurable goals along the way. You also need to assess how your plan is performing and adjust your plan accordingly.
Action Item: Download the FREE interactive PDF at the start of this blog. Document your learning goals to master Wealth Principles. Establish your current net worth. Choose appropriate finance first strategies. Develop a plan to close the gap.
If you need help completing the above exercise, join us for the Wealth Amplifier Workshop online from February 9 – 11, 2024.
George will personally guide attendees through the four steps you need to build a bulletproof wealth-building plan to fast-track your journey to a safer, more predictable financial future.