When You Build Wealth Correctly, You Keep More of It

The goal of building wealth is one that many people strive to achieve. In order to achieve financial freedom and the life dreams you have set for yourself — you’ll want to accumulate assets, investments, and savings over time. While building wealth is essential, keeping and growing it are equally important.

How is this accomplished? Most of us believe investing our money in Wall Street and waiting 30 years will ensure a prosperous retirement. The truth is that 95% of Americans do not become financially independent by 65.

What exactly are the other 5% doing? Garrett Gunderson wants to help answer that question.

Through plugging financial leaks and finding cash that is rightfully theirs, Garrett has helped people keep more of what they earn. His book, Killing Sacred Cows, is a New York Times bestseller, and he is the founder of Wealth Factory, a company that helps entrepreneurs build wealth and keep it despite market changes.

Garrett shares his advice for navigating a financial future in a world that appears ever more uncertain. Garrett will also discuss why Wall Street cannot make you rich, how to preserve and grow your wealth with insurance, and how he achieved ongoing cash flow through an exit deal. Furthermore, I will share several intelligent financial strategies that can be used to build wealth and preserve and multiply it for long-term financial stability.

Set a Financial Goal

A clear financial goal is the first step toward building wealth. In the absence of clearly defined objectives, it is challenging to develop a plan and stay focused on its achievement. The more specific your goals are, the easier it is to align your efforts and priorities. You can also track your progress through measurable milestones and adjust when needed.

According to a Charles Schwab survey, 65% of people with a written financial plan feel financially secure, compared to 40% without. Most planners (54%) felt “very confident” that they would reach their financial goals, versus only 18% of non-planners.

What is the best way to set a financial goal? Answering the questions of who, what, when, where, and why is the simplest way to write down your goals.

In your goal statement, mention “I/we” since this is your goal. After that, specify your goals. Describe how you will achieve your goals in your goal statement, including dates and what you will do to accomplish them. Until your goals are specific and measurable, keep rewriting them.

To reach your goal(s) within the timeframe available to save or invest, use the Financial Goal-Setting Worksheet. It is important to note that spaces are provided to calculate the amount of savings needed to fund the following financial goals:

• Short-term (under 3 years)
• Medium-term (3 to 10 years)
• Long-term (10 or more years)

After doing the math, tell other people about your financial goals so they can help you reach them. As your personal circumstances or economic conditions change, adjust your goals (e.g., saving more money or reducing debt).

Budget Wisely and Live Below Your Means

It may seem obvious and isn’t always exciting, but budgeting is the key to financial success. Why? Understanding your income and expenses lets you know where your money goes.

By creating and adhering to a realistic budget, you can also live within your means. As a result, you can save and invest a considerable part of your income. You will also save money by avoiding unnecessary splurges so that you can prioritize essentials and suitable investments.

Don’t Invest in Wall St.

A surprising number of financial advisors in my Lifestyle Investor Mastermind wanted to learn about alternatives to investing in the stock market and how to invest outside of it. It makes sense in hindsight since the stock market is volatile. Investments on Wall Street are subject to fees, such as 12B-1 fees, expense ratios, commissions, admin fees, and legal fees. As such, these fees will reduce your profits.

In addition, there is little control and a high risk of fraud associated with the stock market. It can also be challenging to understand how the stock market works.

Garrett also isn’t a fan of Wall Street. In fact, he hasn’t had any money in the stock market since 2002.

“Wall Street does not promote cash flow,” Garrett explains. “They are training people to wait for 30 years in the hope that someday, they can actually create cash flow.”

Invest in Yourself, Your skill Sets, and Your Abilities

Where’s he investing it if Garrett isn’t pumping money into the stock market? “I’d rather invest in my own skill sets,” he says. “I’d rather invest in companies I have a say or control over, which I don’t with the public company.”

He continues that our skills, knowledge, and abilities must be invested in, as well as our ability to know and deliver our value. If that sounds too vague, Garrett recommends that you focus on developing yourself, your skill sets, and your abilities.

“Unfortunately, people have been trained that their biggest asset is their job, and they are trading their life and time for that job,” he says. “That job is never going to keep pace with inflation.”

You Can Preserve and Grow Your Wealth By Leveraging Insurance

As a 19-year-old, Garrett started with fifty bucks a month towards whole-life policies. By the time he was 20, he could afford $262 a month. Today? Including his own, his wife’s, his kids’, and business associates’ policies, he has 26. That’s how he stores his money.

“Instead of getting 1% in a money market account, I’m getting 4%. Instead of paying taxes, I’m not paying taxes. I can access my cash very easily,” he clarifies. Garrett has used this money to buy businesses, real estate, and even crypto. “I’ve used it to buy things that make sense based upon what’s going on in the economy, but without the risk of losing the cash during downturns of the economy,” Garrett states.

Give Back and Practice Gratitude

There is more to wealth than financial abundance. Think about giving back to your community or supporting charitable causes as a way to cultivate a grateful mindset. As a result, you not only receive a sense of fulfillment and happiness, but you can also deduct charitable contributions from your taxes.

In Gattett’s case, he’s also educating others about how to make money more accessible and less intimidating. His mission is to help as many people as possible thrive during these uncertain times by reaching out to as many people as possible.

Give Back and Practice Gratitude

There is more to wealth than financial abundance. Think about giving back to your community or supporting charitable causes as a way to cultivate a grateful mindset. As a result, you not only receive a sense of fulfillment and happiness, but you can also deduct charitable contributions from your taxes.

In Gattett’s case, he’s also educating others about how to make money more accessible and less intimidating. His mission is to help as many people as possible thrive during these uncertain times by reaching out to as many people as possible.

Have an Exit Strategy to Create Ongoing Cash Flow and Achieve Time Freedom

I think there is always room for celebration when a business is sold. And this is true with Garrett’s exit.

His business was sold for a lower price upfront. After creating a licensing deal, he continues to generate cash flow, essentially getting the same cash flow he had previously for one twenty-fifth of the effort — since he shows up as a presenter and doesn’t have to worry about operations.

Even better? He’s pursued other interests like comedy and writing books. Not only is he reaching others with these passions, but this lifestyle allows him to prioritize his time with his family and health.

Featured Image Credit: Photo by Leeloo Thefirst; Pexels; Thank you!