Save – Not Spend – Your Way to 7 Figures
I am nearly finished reading 6 Steps to 7 Figures. In summary, I think the titles of the chapters do most of the heavy lifting for the book:
1. SET GOALS & AFFIRMATIONS: change your circumstances in only five minutes a day
2. TRACK: that which is measured will grow
3. FIND MENTORS & MASTERMINDS: learn from the best and copy your way to success
4. ACT: you reap what you sow, 100% of the time
5. BUILD ON IT: capitalize on every success, no matter how small
6. INVEST: put your money to work for you
All of these steps are logical and, of course, important in your pursuit of building your business and your overall wealth. Throughout multiple chapters, author Hiban talks about tracking your wealth and being dedicated to paying close attention to your expenses. In the last chapter on investing, he says something that is maybe obvious but really gave me pause in the way he described it. Most people cannot wait to reward themselves for what they have worked hard to earn – by spending their money. They can’t wait to buy a new car, or go on a trip, or buy a vacation home. But Hiban asserts the importance of creating goals that force you to SAVE money to be able to accomplish them. Furthermore, when you are saving for something, you should be saving for something that will be a cash flow generator, not something that is going to be a liability. For example, if you save $50,000, you should put that down on a rental property that is going to pay you some cash flow every month. This will increase the money coming in, instead of the opposite – buying a beach house vacation property that will only be used a couple of times a year – that increases your fixed expenses.
It is important to be thoughtful about this as you consider how you will position your future self financially. And, as you are considering your financial goals:
1.Make sure your goal(s) are not structured as, “once I am making [this] much money in income, I am going to do [these] things.” Instead, structure your goal(s) as, “once I have saved [this] much money, I am going to buy [this] cash flowing asset.” Be a saver, not a spender.
2. Buy things that increase your income, not items that create more liabilities on your balance sheet in the long term. The more liabilities you have, the greater your risks. You may not always make the same amount of money that you make now – and you always need to be prepared for that.
When it comes to building a net wealth of 7 figures, Hiban saved the most important principle for the very end of his book: save your way to 7 figures.
Written by Schuyler Williamson
REALTOR. Leader. Veteran. Business Owner. Investor.
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God Bless!
~ Schuyler Williamson