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12 Reasons Why People Don't Get Wealthy
Anthony Robbins is one of the top success coaches in the world, having coached star sports players, heads of states and Fortune 500 executives. In his Get The Edge program, he listed down 12 specific reasons he has come to observe to be the leading causes for most people's lack of wealth.
Sound Wealth Building Tactics
Have you noticed that everyone wants to be rich, but few people seem to want to build wealth the old fashioned way: step by step? If you have tried the ?lottery method? and it hasn?t worked out, read on for some tips on how you can build wealth for a better future.
I'm Thinking - But I'm not Growing Rich!
So you've read "Think and Grow Rich", and you've got an intellectual understanding that you "become what you think about". You have a list of affirmations about wealth, and you recite them every day. But you still have no money. Wealth doesn't seem to be anywhere around. What's the deal here?
How to Grow Your Very Own Money Tree
Okay. So money doesn't really grow on trees. Unless you plant your own Mighty Money Tree, that is!
The Four Golden Rules Of Personal Finance
As long as you are alive, you are a player on the field of the money-game, and you need to know the basic rules before you get tagged by the experienced players.
7 Great Money Tips To Lead You To Financial Freedom
Regardless of where we are in life we can all learn something about money and how to better prepare for our future.
How To Have A Good Relationship with MONEY!
When it comes to personal finance and money matters in general it's important to understand the role money plays in your life. Whether you like it or not, money makes the world go around.
9 Ways to Stretch Your Income
With spiralling fuel costs and interest rates on the way up, many of us are finding ourselves having to stretch the ends until they meet.
Will you ever be rich?
What does it take to be rich? First, let's look at what rich is. I like to define rich as being able to purchase what you want and need when you want or need it.
Understanding your investment style
Australians, on a per capita basis, are the biggest investors in the world. No matter what kind of investing you do - bonds, share options, managed funds, gold, commodities, real estate - in order to be successful you need to have a thorough understanding of your personal investment style.

Do You Work For Your Money
Or Does Your Money Work For You ...


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A few simple ideas, when understood fully, lead people down the road to financial independence and wealth. You need to understand the difference between and asset and a liability. You need to understand the difference between earned income and passive income. You need to understand the three basic cash flow patterns. Finally, you need to understand how your focus in life ties it all together.

... continued below

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Family Budgeting: A Practical Financial Guide
Budgeting doesn't need to be complicated. You don't need a master's in accounting. You don't even need a computer. Pen and paper will do. A good family budget performs the following functions.
Do You Work For Your Money Or Does Your Money Work For You?
A few simple ideas, when understood fully, lead people down the road to financial independence and wealth. You need to understand the difference between and asset and a liability. You need to understand the difference between earned income and passive income. You need to understand the three basic cash flow patterns. Finally, you need to understand how your focus in life ties it all together.
Values-Based Wealth Planning
No one over age 18 today will live to see the end of the 21st Century. The inheritance you leave your children is reflected in the values they have learned from you about the role of money and property. Here are ways to plan for the future that give your heirs a perspective on their Inheritance that extends far beyond the dollar value of what you pass on to them.
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That old saying about death and taxes should have superannuation added to it. In Australia at least, you just cannot get away from it.


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Do You Work For Your Money Or Does Your Money Work For You ... ... continued from above

The Poor Cash Flow Pattern

In order to understand the three basic cash flow patterns, you must first understand the difference between an asset and a liability. When you stop working for money, an asset is something that will put money in your pocket every month. A liability is something that will take money out of your pocket every month. This idea touches on the difference between earned income and passive income.

The first basic cash flow pattern is the poor cash flow pattern. Before most people even learn about money they want things, and so they learn first to work FOR money. As their income is earned it is just as quickly spent on their list of wanted items. The poor cash flow pattern has earned income flowing in and entirely back out to expenses.

It does not matter if you have a sizeable income, because money does not make you rich or poor. Money is just a tool. It is how you are managing the tool (money) that determines whether you become rich or poor. Even with a substantial income you are still poor as long as your focus is only to earn your income and pay your expenses.

You may make $500,000 a year, you may have enough income to cover all of your expenses, but if you were to stop working for money you would quickly realize that you are poor, and the idea that you were not was just a temporary illusion.

The Middle-Class Cash Flow Pattern

Eventually people get tired of this routine and begin to gain better understanding and control over their expenses. Enough time spent focused on working for money may produce extra income in the way of a raise or a promotion.

Most people still have not spent any time to financially educate themselves, so they don't know what to do with the extra money. They don't have any ideas of their own about financing their retirement, either. The extra money is usually used to buy a newer car, a bigger house, and anything left over usually accumulates as savings. Eventually most are sold on putting the extra money into a portfolio for their retirement, usually consisting of mutual funds.

These purchases make life more comfortable, and so feel like assets...but they create an expense every month for a very long period of time. The misunderstanding is made worse by bankers who ask you to list your cars and home as assets against loans. By definition, these purchases are liabilities.

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The Wealthy Cash Flow Pattern

A change of focus to passive income leads people down the path to a wealthy cash flow pattern. When you look at the pattern of the wealthy you may notice- they do not get their income from a job. Their cash flows in from assets.

Imagine spending your time figuring out a process that will automatically produce some income for you every month. Now imagine duplicating and improving upon that process until it automatically produces your ENTIRE income every month. Finally, you will stop working for money. That process is a business, and that income is a passive income.

From that point forward you will be financially independent. You will not work for money, you will have money working for you. It might take you 2, 3, or even 5 years to establish a system to that point, but once you do you can retire. Once you retire, you have all of your time to spend however you like.

This is the reason understanding the three basic cash flow patterns is so important. These patterns demonstrate the reason why you can become financially independent in just a few years working at a seven dollar an hour job. Your biggest obstacle in the beginning is controlling your expenses and changing your focus from earned income to passive income. Once you have become committed to these fundamental ideas, only persistence stands between you and great wealth.

Reader comments about this article

    By Bob Bunbury

Passive Income! I thought it meant 6 months holiday twice a year. But like most investors, I'm beginning to see that we really need to work at our priorities, and spend time and effort to gain the knowledge to channel what we have into holistic lifestyle improvement. Passive income takes a lot of mental sweat. But its worth it!


    By Bowen

Is this article talking about buying investment properties or the like? I am new to this so I don't really understand what it really means, or is that the way is it meant to be so I have to buy the book? Thanks


    By Maggie Ball

This is a good article. I'd love to see a simple ecourse on understanding basic wealth creation concepts. Thanks for making this information available!

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Disclaimer: The information contained above has been provided as a general service. Any references to specific financial, legal, accounting, or taxation issues are done so in the context of general information and should not be relied upon as fact or construed as advice by the us in any of these areas. You should consult a relevant financial, legal, tax or accounting professional to assist in your particular circumstance.
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