TES 017 - Money Doesn't Make You Wealthy - a podcast by Mel Abraham

In this episode #1 Bestselling Author, Mel Abraham walks you through his thoughts on wealth creation and the framework as well as how to get out of debt. 

 

 

 

Become Aware of Your Emotional Attachments to Money

Sometimes we make money a poison; money a negative; money something that we ought not to talk about. Is it something that's emotionally charged, emotionally negative? That's something that we need to deal with because money has no emotion; it's simply money. It's a piece of paper; it's a coin. It's a representation of value and there's no energy to it.

Wealth is Not About Money - A lot of people think to be wealthy you need to have money. I got to tell you I don't think that's the case, actually. Wealth isn't about money. It's more about discipline than it is money.

Have a Debt Elimination Strategy - Use either a “snowball” (paying off your lowest balance first) or “avalanche” (paying you’re your highest interest rate first) strategy to systematically get out of debt. 

Make Investing a Priority Over Spending - Most people live their lives where they spend what they are making on the things that they want to have and they invest what's left over. The wealthy and the successful do it the other way around. They invest what they need to and then they create a life on what's left.

Wealth Creation Priority Ladder - The key is to create a system of building wealth by allocating your income in a priority ladder to bring you financial freedom. I created and have used a 6-stage framework to accomplish this.

Comfort Cushion - The first element is I want to start to build what I call a Comfort Cushion to give you some cushion should you have an income hiccup. I think that the base Comfort Cushion I would say is about $2,000. $2,000 can give you a little bit of wiggle room.

Consumer Debt - The next piece of the process is to rid yourself of consumer debt. Consumer debt is your credit cards, your student loans, and personal loans.

There's two primary ways that you get it paid off. You can use a “Snowball” approach by paying your lowest balance first or an “Avalanche” approach to pay your highest interest rates first. Most importantly, get a system be disciplined and stay on it.

Peace of Mind - The next level is to build a Peace of Mind fund. I'm really conservative, like I said. I want you to have a 24-month ... a 2-year cushion. It may take a little while but that's the effort you're trying to get to; a two-year cushion of your monthly expenses that will give you ... God forbid something happens.

Real Estate Payoff - The next stage is to start thinking about paying your real estate off. If you own a house, let's start paying that loan down. Let's get out of debt. What I'd love to see happen for you and where I find financial freedom is when I find myself debt free, cash flowing and able to do the things that I want to do, with whom I want to do it, when I want to do and where I want to do it.

Freedom Fund - Once all these levels are fully funded we can then look towards our Freedom Fund. That is what gives us the ability to build beyond, do beyond. That's really what I look at as the five steps of what I call the Wealth Creation Priority Ladder.

Be smart about it because the sooner you do this, the more disciplined and systematic about it ... You will open up your eyes, I promise you. You will open up your eyes 10 years, 20 years down the road and go, "Oh, my God. I had no idea that I had this."

 

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ABOUT MEL ABRAHAM

Mel is the founder of Business Breakthrough Academy and Thoughtpreneur Academy where he helps entrepreneurs bring their businesses to the world and build the lifestyle that they want. Mel is one the most sought after entrepreneurial mentor and strategic thinkers of our time. Unlike many other so called “business coaches”, Mel has lived everything he teaches and continues to do so. Mel has built, bought and sold numerous multimillion-dollar businesses for himself as well as his clients. As the author of The Entrepreneur’s Solution: The Modern Millionaire’s Path to More Profit, Fans & Freedom Entrepreneur, Mel’s strategies have helped build thousands of businesses and have generated hundreds of millions of dollars for his clients, ranging from large corporations to startups and small family-owned businesses.

Mel is a true believer in the entrepreneurial way of life and says that this “new frontier” is the paradigm that will shift society from simply existing to living life bigger, bolder and on their own terms.

Meet Mel at http://melabraham.com/

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THE ENTREPRENEUR'S SOLUTION

The Entrepreneur's Solution is a weekly entrepreneur, business, wealth and lifestyle show where entrepreneur, speaker and author Mel Abraham reveals all of his business and entrepreneur building strategies. Mel is one of our time's most sought after mentors and speakers that not only teaches but also lives what he teaches. Discover how to design, create and build your business so it gives you the life and lifestyle you want.

Subscribe to the free entrepreneurial podcast here: http://melabraham.com/podcast

The Entrepreneur's Solution Blog on Tumblr: http://melabraham.com/blog

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