Rich people focus on their net worth.

Poor people focus on their working income.

Action #1
Focus on all four net worth factors: Income, Savings, Investments and Simplification. Focus on increasing your income, building your savings, maximizing returns on your investments and decreasing your cost of living by simplifying your lifestyle.

Action #2
Create a net worth statement. Add the current dollar value of everything you own (your assets) and subtract the total value of everything you owe (your liabilities). Commit to tracking and revisiting this statement each quarter. What you focus on will increase.

Action #3
Hire a financial planner who is highly successful and works with a well-known, reputable company. Ask friends and associates if they know of a superior one.

Action #4-Declaration
Put your hand on your heart and say,

"I focus on building my net worth."

The first factor is Income. There are two kinds of Income: working and passive. Working income is the paycheck you earn from your day job. Or if you're an entrepreneur, it comes from the profits you earn in your business.

Working income is important, but only to pay the bills and fill up your financial "funnel." The more you make, the more you can devote to savings and investments. But working income is only part of your wealth equation.

Unfortunately, working income is what poor and middle-class people focus on exclusively. That's why they end up with little or no net worth.

Passive income, on the other hand, is money you make without working. This is another stream of income that can be used for spending, saving and investing.

The second factor is Savings. You can make wads of money, but if you don't keep any of it, you'll never create wealth. So is your financial blueprint wired for spending, or saving? Do you spend everything you have? Is your motto "It's only money?" Or is money important to you? Do you save it so you can put it to work for you? As in Investments?

Which is the third factor -- Investments. The better you are at investing, the faster your money will grow and generate a greater net worth for you. So if you want to become rich, take the time and energy to learn about investing and how to identify excellent investments.

The fourth factor, Simplification , is the "dark horse" of the bunch. When you simplify your life to the point where you need less money to live on, you can increase your savings and the amount available for investing. The best part of this is that if your investment and passive business income is greater than your cost of living, you don't have to work for a living. Remember: the definition of financial freedom is working because you want to. Not because you have to.

Poor and most middle-class people play the money game with only one of these factors. They believe the only way to get rich is to earn a lot of money in their job. But because they believe that, they fall victim to Parkinson's Law: "Expenses will always rise in direct proportion to income." So even if they got a raise, they wouldn't have any more money. In fact, they might find themselves farther behind.

So does Millionaire Mind refer to income or net worth? It refers to net worth. This is what I want you to focus on. Because as I often say in our training, "Where attention goes, energy flows and results show." Do you want to be rich? Focus on your net worth.


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