Your Big Picture
 

Historically homes and real estate have risen in value (appreciated) over time. Automobiles, and just about all tangible things, do not. They lose value over time (depreciate). Sure there are exceptions to each of these statements, but they are largely true. It makes sense to only borrow money in low risk ways to acquire assets that will increase in value and that you are unlikely to lose money on, and pay cash for expenses and depreciating assets.

In this section I have shared with you the basic concepts that have set many people free financially. Over time, as long as you follow the specific steps laid out in the rest of this book, you can expect the outcomes described. There are no fancy tricks or little known schemes that will make you instantly wealthy, but there are plenty of ways to do so given time.

Now, let’s talk about how you are going to grow wealthy. In the following pages I will show you how to get what you want. It will be an eye opener and it can be tremendously satisfying. But only you can make it happen. As simple as these steps are, you must take action to progress.

You Will Become a Millionaire

The way to wealth is very simple in theory:

1. Establish positive cash flow, save money, and accumulate assets.
2. Make time and money work for you instead of against you.
3. Pay off your debts.
4. Consistently increase your net worth.

Finally you want to do all this with a minimal amount of risk. In the following sections we will discuss how to accomplish each of these steps. First you’re going to set your goals. Undoubtedly, money is going to be a factor. Then you create a road map for your finances to help you attain those goals.

Genie in a Bottle

Pretend you’ve come across a lantern. By using this book your life can be transformed just as if you rubbed the lantern and a genie appeared and granted your wishes. However, this genie is kind of slow. It’s going to take at least five years for your dreams (now known as goals) to happen, and only if you start today. But they will happen. This may seem simple but for most people it will be a completely new and unfamiliar experience.

To help get you started think about how you want to live, where you will live, what you will do for recreation, and what you will do for an occupation. I want you to give it your best shot now to come up with possible answers. Write them down. Then based on those goals, answer these questions: In five years…

• How much total cash do you have (liquid plus retirement)?
• How much is your net worth?
• What is your annual income (salary + business profits + investment income)?

Next I’ll show you how to figure out your present situation and the difference is what your “genie” will grant you. We’re not pretending now. But if you follow through on the goal setting steps outlined, you will be able to achieve them.

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