Skip to main content

Wealth creation pitfall: Lack of planning

Blog Image
A major overlooked aspect of wealth creation is lack of planning.
 
There are two types of financial plans:
  • Investment/retirement plan
  • Wealth creation plan
An investment plan is a money management plan, which is usually drawn up and implemented by a third party. This plan dictates:
  • How you must handle your money
  • What products to use
  • What risks you must take
A wealth creation plan is a business plan which focuses on generating passive income by acquiring the right assets. The plan is drawn up by the wealth creator (i.e. you) and usually implemented by your team.
 
It must also align with who you are and what you want out of life, and not by what a particular product can or cannot deliver.
 
Importantly, a plan must never dictate how you do things. It's always the other way around. You must be in the driving seat.
 
►Principles of building wealth
 
Building wealth is about implementing key universal principles, the exact same ones used by highly successful people like Warren Buffet and Bill Gates.
 
The best thing of all is that these principles are freely available to everyone. You can access these principles by downloading my free ebook, ‘The Rule of Six’ (6 Golden Rules of Building Wealth).
  1. Rule 1: Use passive income to build wealth
  2. Rule 2: Always make sure you are in control
  3. Rule 3: Focus your resources on building a business
  4. Rule 4: Use leverage to accelerate your journey
  5. Rule 5: Build a surplus to kick-start wealth creation
  6. Rule 6: Follow your life's purpose. Create meaning!
►Get your plan in place, then consult the experts
 
Wealth creation is a massive project, to say the least. It is a long term process which requires measurable goals and objectives.
 
Without a plan, something (big) will go wrong. It’s like driving around at night with a blind fold on. You’re bound to crack your head open on something solid!
 
If your life’s passion becomes your plan, then I believe you’re even closer to success. For me, this takes first place.
 
You need to enjoy what you do and have fun doing it. Alternatively, you can choose to earn money doing whatever, but make 100% sure that this is the route you want to take.    
 
►Add muscle to your plan
  1. Discover what you want out of life (Be very specific)
  2. Increase your financial and business literacy
  3. Create a plan with measurable goals and objectives
  4. Use a specialised team to do all the hard work

Rule of 6 book