There have been times when I’ve been watching someone on TV when I’ve thought to myself they’re not practicing what they preach. They’re giving advice that they don’t follow. These experts and pundits who don’t take their own advice can come off as inauthentic or insincere. But what I want you to know about me is that I know from personal experience how the Wealth Building Formula® can work because I use it. I’ve seen firsthand the power of what having something like the Wealth Building Formula® can do for you because of what it did for me. I had a goal to be financially independent by the age of fifty, so I needed a plan that would allow me to achieve this. I made it by forty-eight. And it was solely due to the Wealth Building Formula® and making informed and better financial choices.
But what you want are some examples of how to work your own Wealth Building Formula®. Let’s say you are a business owner. Someone makes you a purchase offer for $10 million, and you’re eager to accept it. It seems like a pretty good deal at first glance. But if you haven’t calculated your Wealth Building Formula® or don’t know what your current cash flow needs are or what kind of wealth you need to have to create that cash flow now and in the future, then you don’t know whether or not to make that deal. Don’t get sticker shock and overjoyed without knowing how to achieve your future goals.
With this deal, you’d ask your financial advisor. And let’s just say your advisor told you that you’d need to get $12 million for your business to have the cash flow you require now and for the rest of your life, then you could then go back to the potential buyer with that number. In the event that they won’t go any higher, you can accept their offer and also understand what you need to do with the money in order to make up the shortfall between what you have now and what you’ll need in the future. Alternately, you can take steps to increase the value of your business: Do you raise your prices, cut expenses, hire more people, build a new location, or buy a second business to merge with the first? Knowing the effect these choices will have on your cash flow provides another valuable lesson in working your Wealth Building Formula®.
It’s all about working your formula, which means you’re doing things with a purpose that’s aligned with your plan, not flying blind on a wing and a prayer, hoping that you’ve made the right financial choice.
For more information about working the formula to achieve your financial goals, visit tswealth.com.