Why you are not necessarily getting any wealthier

Most people believe that by concentrating on their careers and by increasing their income, they will fix the problem of not having enough money. So they are constantly looking at ways of advancing their careers and qualifications. They are working harder than ever on getting promoted, or looking for the next job with more pay.

The truth is that for most, focusing on your careers and the income from your job is not necessarily making you any wealthier because you are spending your gains on depreciating luxuries which keeps you prisoners of the middle class. In addition, Income tax, inflation and interest payments on your money are seriously handicapping your ability to create wealth from your income. You are focusing your attention and energy in the wrong place. Making a million in salary income (whether that be in a month, a year, or five years) and spending the same million in the same period, doesn’t make sense. You are just a consumer.

So, where should we be focusing our attention if we want to improve our financial wellbeing? Well the secret is to take about 5 to 10 percent of what we are making from our monthly salaries and convert this investment amount into buying appreciating assets. The kind of appreciating assets I am talking about are assets that pay you a constant,  recurring and exponential income. Buying a two bedroom apartment at a bargain price in a good area that is experiencing excellent growth is an example of a great appreciating asset. My aim is to get a 90% mortgage on this property and get a good tenant to pay the mortgage payments.

And no I don’t live in a fools paradise or in fantasy land – there are thousands who are successfully achieving all of the above. If you want further information please contact me at clive@7yearwealthplan.com

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