Personal wealth building success starts and ends with your spending habits. The wealthiest people in America (the Forbes 400 that is) all have one thing in common when it comes to their financial habits: their spending is always directed towards financial freedom. This is why you never find rent to own stores, title loan companies and stores that sell 60 different kinds of lottery tickets in the wealthy neighborhoods. All of these are things which people spend money on which help someone else to become wealthy. This is why the practice of “Powerspending” is one of the most important strategies for increasing personal wealth.
Let us look at a few personal wealth building strategies which encourage spending that leads to financial freedom.
Spending on Personal Wealth Building Education
Your personal education is the most valuable asset you have. It is more valuable than your house, your job or even your company (if you own one). It is also something which you can never lose of which can be used to rebuild wealth even when it is lost. Think about it, if you take $1 million and put it in the hands of someone who is well educated when it comes to building wealth, the money will multiply many times over within a very short time. Take that same $1 million dollars and put it in the hands of someone who does not understand the principles of building wealth and financial freedom, and the money will be gone in a few years with nothing to show for it.
So spending money on your financial education is the most valuable personal wealth building strategies you can use.
Spending Money on Assets Which Create Money
The second key to personal wealth building is spending money on assets which help you to create more money. Some examples of this would be: rental properties, patenting or creating products to sell, purchasing investments which help you to earn compound interest and anything else which will get your money working for you. Most people spend their whole life working for money, but those who achieve financial freedom know how to put their money to work for them.
So take an inventory of your spending habits and be honest with yourself about how much of your hard-earned money is being spent on depreciating assets like: new cars, a house which has a mortgage that exceeds 40% of your monthly income, big screen TVs and other expensive forms of entertainment. Sure, all these things are nice to have, but whenever you buy them you are making someone else richer and yourself poorer. Start focusing on spending money on things that will add financial value and cash flow to your life, and financial freedom will be within your grasp.
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