The best place to start your wealth building is with you. Of course, your wealth team plays an important role, but you are the best person to build your wealth.
You are the one who is best able to identify wealth building opportunities because you are the one who is in the day-to-day activity and that is where the opportunities are. Plus, no one cares more about your wealth than you do.
Where Do You Start?
When I speak on the topic of building permanent wealth, I share that money can be made in any type of asset and what works for one person will not work for another.
How do you determine what will work for you?
Here are 2 tips to help you determine what will work for you in your wealth strategy:
Tip #1: You must like what you do
Since you are the best person to build your wealth, it’s important that you like what you are doing in your wealth strategy.
It may seem odd to dive deep into self-analysis when picking your type of investing, but turning your investing into something you like to do is a key part of a successful wealth strategy.
Your choice of asset to invest in is a very important decision. You will be spending years devoting yourself to this specific type of investing.
Make a list of the activities you love to do. These may be your favorite hobbies, your favorite household duties or the tasks you really enjoying doing at the office. Your list should reflect the things that you get excited about. These are the things you can do for hours and feel even more energized as you are doing them.
Tip #2: Your investing activities must complement what you like to do
Make a list of the types of assets you are considering for your wealth strategy. The assets don’t have to be specific assets – they can be broad categories. For example, the assets may include real estate or business. While there are thousands of opportunities within these broad categories, the opportunities within a broad category have some things in common that can provide you with direction in your wealth strategy.
Next, think about the actions it will take to make these investments successful. For example, if you are thinking about starting a business, what actions are needed to make a business successful?
Compare the list of activities you love to do (from Tip #1) to the investing actions for the assets you listed. Which asset best complements your list of activities based on the investing actions involved?
As I said earlier, money can be made in any type of asset and what works for one person will not work for another. It is not so much about the specific investment as it is about how the investment complements what a person likes to do.
Once you have identified your broad asset category, you can narrow it down knowing that the majority of the specific investments in that category will complement what you like to do.
Turn your investing into something you like to do
If someone doesn’t like what they are doing, they will most likely avoid it and this can set a wealth strategy behind by years.
I find that people are most successful in their wealth strategies when they like what they are doing. Someone who enjoys what they are doing will tend to be more involved and is more likely to move things forward. This is a huge advantage in a wealth strategy.
Written by Transborder Tax Accountant – Tom Wheelright.
As I didn’t have time to write a blog this week I wanted to share’s Tom’s because it really resonates with me and applies to many areas of our lives. I also have not seen it written often about our wealth strategies.