Proverbs 14: 23 those who work hard make a profit, but those who only talk will be poor.

Everyone wants to productive and wants to build wealth. No one likes to be stagnant. One of the things that kills the human spirit, is that we look back to see that we have not really done much with our lives. This realization can bring about depression.

The Wealth Cycle

So what is the wealth cycle? The wealth cycle is simply this: Use income to buy assets which generate even more income. Income and assets should be a non-ending cycle. Over time the amount of income you receive from your assets become so large that you can afford to live without working one more day in your life: This is financial freedom!

Example of wealth cycle activities:

• Use your income to buy rental property which gives you income. Then invest that income into getting other properties.
• Use income to invest in business and use existing income to grow your business (this is the area I specialize in)

The wealth cycle is such a simple concept, but why don’t we all do it. The reason we do not all participate in the wealth cycle is because at the center of any wealth building strategy is character. Without character it does not matter how much money you make, you will never build wealth.

The pattern of creating your wealth cycle

There is a pattern to creating wealth, most people randomly do stuff without actually taking time to put together a real plan.

There are 3 basic needs: food, clothing and shelter. We all work to meet these 3 basic needs. People suffer because they spend too much on living and not enough on life. Let me explain what I mean: we all need food to eat, but do we really need the second helping of quarter pounder. We all need a place to stay, but do we really need a 3 bed room when you have no kids. We all need clothes, but do we need to buy designer clothes. People get stuck doing things just because its “nice”. But then you can’t move anywhere else. When you spend too much on living you do not have enough to invest in your life.

The pattern of creating your wealth cycle is simply:

• Earn money
• Pay for survival needs
• Invest excess
• Enjoy some
• Give ( I do this first because of personal beliefs)

This is a rinse and repeat formula. Form the right habits today, and over time you will wake up to see you have created real wealth. This is a more concrete path to wealth than get rich quick schemes. Get rich quick schemes always leaves you empty because there is no core to any money you make. In other words, no character is developed in the process.