One of New Zealand’s most popular recipe books is the Edmonds Cookery Book, which has sold more than 3 million copies since it was first published in 1908.
Why is it so popular?
Within the pages of the Edmonds cookbook you will find the recipes for all of New Zealand’s favourite dishes and delights. Pavlova, chocolate fudge pudding, scones, bacon and egg pie and much more. All inside the cook book.
More importantly, for each recipe you are given clear, step-by-step instructions on how to make the goodie your taste buds are longing for. From the ingredients you need, to how to mix the recipe, through to how long to cook it and at what temperature. All designed to give you the perfect results.
And the results are pretty much perfect when you follow the recipes in the Edmonds Cookery Book. Which is why it has been a top seller for more than 100 years.
Let me tell you about a recipe of another sort. It’s not a recipe for food. It’s actually a recipe for building wealth.
Called the Wealth Journey Blueprint, my recipe has been developed over a 30 year period, and represents the steps I’ve taken to become a successful financial coach, advisor and investor.
With my recipe you will learn what ingredients you need for building wealth, as well as the step-by-step instructions that help you to build a financially successful future.
As I have traveled along my wealth journey, I’ve made some mistakes along the way. But that’s the great thing about perfecting a recipe. You learn from your mistakes, find solutions to your problems, and make the recipe even better.
Let me share with you the overall framework I use to build wealth. Then I will outline my “7 Steps to Wealth”, which gives you the key steps you need to take to become financially successful.
Here is a visual framework for The Wealth Journey Blueprint, which you need to study closely.
Unless we have wealthy parents and were born into money, we start our wealth journey in the bottom left hand side of the diagram, as shown.
Our destination? Naturally it is to get to the top right, where over time we have accumulated the level of wealth that we are happy with. Therefore, the wealth journey is all about travelling from the bottom to the top.
The diagram illustrates the basic cycle of building wealth, which is:
- Using a top 5 asset to produce income
- Minimising expenses and consumer debt
- Protecting assets
- Reinvesting into assets. This enables you to grow asset value and produce more income
In short then, wealth building is all about applying and repeating the cycle as shown. How to do it? You need to follow my 7 Steps to Wealth. This is your recipe for wealth building and the steps are:
Step 1. Establish a frugal investor mindset
To build wealth you firstly need to have the right mindset. And the mindset you need is that of a frugal investor. Building wealth is not about wanting to buy flash cars and the latest gadgets. It’s actually about building financial security for you and your loved ones.
Step 2. Get a “walk the talk” advisor or coach
There is a simple reason why top athletes and sports teams use coaches. Coaches and advisors help to improve performance. The other thing a good advisor/coach can do is shorten the time it takes to you get you to your goals.
So step two in the Wealth Journey Blueprint is getting a “walk the talk” wealth coach or advisor. An advisor who “walks the talk” is not only qualified, but he or she has actually achieved the level of success you aspire to reach. Not by winning lotto or by having rich parents, but through applying the wealth framework.
Step 3. Develop a game plan
With the help of your advisor you develop your gameplan, which takes into account your goals, where you are now, and how you will achieve your goals.
Step 4. Learn the wealth cycle
An asset is a resource that produces income and value. And under the Wealth Journey Blueprint there are five key assets you need to focus on:
Your personal skill set (to be used in a job/business). Your personal skill set is your most important asset and represents your ability to generate an income. For many of us, when we start out our wealth journey, our skill set is the only asset we have. and wherever we are on the journey, it is the asset that helps us to get what we want.
Cash account. Self explanatory. It is the money you have available to you in your bank or deposit accounts
Houses/property. Includes personal home ownership and other investment property
Business. This is a business you own and operate or have an equity interest in.
Managed funds. Managed funds are investment accounts managed on our behalf by licensed fund managers. They include KiwiSaver and Superannuation accounts.
Income is what is produced by the asset, for example
Job = salary/wages
Business = sales revenue, profits and dividends
Property = rental income
Cash = interest
Managed funds = dividends and unit growth
Expenses are what we spend money on, best divided into needs and wants.
Debt is money we borrow to buy things. There are two types of debt, consumer debt and investment debt. Consumer debt is the money we borrow to buy stuff such as phones, clothing etc, most often with credit cards and loans. Investment debt is money borrowed to purchase assets such as property.
Consumer debt is bad, while carefully managed investment debt is good.
Step 5. Execute the Wealth Cycle
Step 6. Repeat the Wealth Cycle
Step number 6 is where we really get the wealth cycle going into high gear as it involves repeating the cycle over and over again:
- Using assets to produce income
- Minimising expenses and consumer debt
- Reinvesting
As part of the process there are other measures you need to take including:
- Protecting your assets with a good insurance strategy.
- Spreading some of your risk by diversifying within assets classes and also investing into other asset classes
Step 7. Give back. Cash up. Enjoy
Summary
So that, in a nutshell, is the Wealth Journey Blueprint. It is my special recipe for building wealth. It is the personal recipe I’ve used to go from humble beginnings to financially successful. And, it is the same recipe I get my clients to use to help them on their wealth journey.
Provided you follow these steps properly, over time you will move up the wealth scale. And, that is the overall framework of The Wealth Journey Blueprint.
What to do now? Enrol in The Wealth Journey. It’s free.
To help you apply the wealth cycle I invite you to enrol in The Wealth Journey.
The Wealth Journey is an educational service where my team and I teach individuals and families how to successfully apply the wealth cycle and the Wealth Journey Blueprint.
Enrolment in The Wealth Journey is free and free membership includes:
- The Wealth Journey newsletter which is sent by email to all members
- Invitation to attend Wealth Journey free workshops and seminars
- Member discounts on our paid services such as wealth coaching and the First Home Buyer’s club.
- Knowledge and wisdom from our network of experts in property investing, business, budgeting, risk management and much more.
There is no cost or obligation to enrol in The Wealth Journey. But the benefits you will gain – especially in terms of the knowledge you will gain – will be immense. Plus, you will get to network with other like-minded people who, like you, are interested in bettering themselves financially and personally.
How to enrol in Th e Wealth Journey Simply complete the enrolment form below. Or for more personal service, call me on 021 44 88 94.
I look forward to hearing from you.