No one consciously decides to limit their wealth, but most of us believe that the limitations on our wealth are largely determined by the hand we were dealt in life. Perhaps we will need to use our money to repay hefty college loans, or to take care of aging parents and other loved ones, or to cover unexpected illness and financially devastating catastrophes. No matter what your financial situation, there are steps you can take to increase your wealth. Let’s explore some of the key ways that you can free yourself of the constraints that are holding you back from meaningful wealth-building:
Look at Our Wealth Building Guidelines
- Take your investments out of the financial markets: One surefire way to limit your wealth-building capacity is to invest in the financial markets, which go through endless cycles of ups and downs that, in the end, don’t meaningfully build wealth. When you recognize that you’re gambling away your savings on Wall Street, you can rid yourself of the traditional investing mindset.
- Stop paying so much of your income to Uncle Sam: As you earn more and more money, the government takes more and more from you in taxes. The only way to stop this cycle is to put your money into tax shelters that can minimize or eliminate your tax liability.
- Learn how to keep your money moving through investments: When you invest your money in traditional places like Wall Street, you must select one investment product and then sit back and hope you made the right choice. But corporations and the ultra-wealthy don’t invest like that – they have learned to keep their money moving through multiple investments, each one earning a steady rate of return.
- Take out a whole life insurance policy: A whole life insurance policy is not just a death policy; it has important financial advantages as an investment product. First, it acts as a tax shelter; the government is limited in its ability to tax a private contract with a mutually owned life insurance company. Second, you can access the cash value of your policy at any time to fund other investments, making it a conduit through which you can keep your money in motion.
There’s no reason to let factors that are fully within your control limit your wealth-building capacity. The keys are to recognize that you don’t need to invest on Wall Street, you can shelter your money legally from the IRS, you can keep your money moving through investments, and you can take out a whole life insurance policy as the foundation of your wealth-building strategy.
For more information about freeing yourself of the limitations on your wealth-building potential, visit Paradigm Life’s section on gaining wealth.