[FINANCIAL ADVISOR REVEALS] How To Know You Are On Track To Be Wealthy

Hey there, real quick, before we jump into the episode, listen, if your earnings treadmill hasn't set you free yet, running faster won't either. Listen, hustle without principles just going to burn you out. So here's what I want for you. I want you to join me for my money machine experience live. It is three free trainings. Deep dive into how to escape the treadmill and build a money machine that actually works for you. All right, Grab your spot here by going to moneymachinelive.com and I'll see you in the free training. How do you know if you're on track to become wealthy? Well, you know, after three decades as an advisor, as a cpa, someone that's helped people build businesses, build wealth and transfer wealth to generations, I got an inkling into some of this, some of these things. So in this episode of the Affluent Entrepreneur Show, I'm gonna break it down for you. All right, see you in the episode.

All right. Welcome to this episode of the Affluent Entrepreneur Show. How do you know that you're on the right path to financial freedom? The signs that you are doing well. Well, here's the beautiful thing that at my age, I've had a chance to see a few things over the last three and a half decades. I have worked with entrepreneurs and individuals to help them build their businesses and build their wealth, to find their path to financial freedom and to live a life that's full of richness. So what does that mean for you? It means that I've seen some things. I've seen the signs. I've seen the patterns. And in this, in this video, I'm going to walk you through. In this episode, I'm going to walk you through some of those signs so you can figure out, are you on the right path? All right, so let's get started. So here's the first thing that I think that that happens is that when we really start to understand how this starts to play out, it. They play. They're playing their own game. And here's, here's what I mean by this, and I'll put this down here, is that they are playing an internal game versus an external game. Okay? And this is a tough one in today's world, in today's economy, because here's what we see. You've got. You're getting barraged every single day with marketing messages. You see the nice cars, you see the attractive men, the attractive women. You see the riches, the luxuries. You see them parading and saying, if you just do this, if you Buy just this. If you wear this, if you take this cologne or this perfume or these shoes, all of a sudden life is going to be amazing. And so what ends up happening is we start to buy things because of external stimulus versus internal kind of desires, internal values, if you will. And why this is important is because the tendency, or the risk, I should say, is playing the game of comparison. Okay? You cannot get on social media these days without someone parading their lifestyle in front of you. But that's one iota of the, of. Of the truth. You don't know how they built that lifestyle. You don't know if. If they're, you know, buried in debt and they're just parading something out there. And most, most of these folks, they're not living that lavish lifestyle. They may be living a lavish lifestyle, but let me rephrase it. They're not paying for the lavish lifestyle. They're renting. They're renting the boats. They're renting the. The planes. They're renting the cars. They're. They are in debt to their ears, stressed out to no end. All right? The real question.

Is, it is, are you gonna fall prey to that? Hopefully not, because you're. You're listening to me, you're watching me, and you're following me. Because I want to keep you away from that. Play the right game. Play your own game. This isn't about allowing the external stimulus to define what your life should be. Allowing the external. External stimulus to allow you to define what your purchasing decisions should be. To allow the external stimulus to allow. To tell you what and how you finance or buy things, that it's okay to go into debt. I got news for you. It's not okay to go into debt. Now, there are two kinds of debt, I truly believe, productive and destructive debt. But destructive debt is the debt that you are using, if you are to buy and finance consumables, the stuff for your lifestyle. If you are having to finance clothes, luxury trips, luxury items that you can't afford, then you can't afford it because they're consumables. They're not something that's going to increase your net worth. They're not something that's going to increase your cash flow. They're not something that's going to build your wealth over time. They might build a momentary joy, but that's fleeting. That's that retail therapy that we need to avoid. So number one sign is that you are not allowing the external stimulus to define your financial future, your financial decisions. Okay? So this Is this is the first piece, the second. The second is, are you playing an accumulation game or a consumption game? And when we talk about this, it's really about what I would say is quiet accumulation. The people that I've watched truly build riches, a rich life, something that they feel wonderful about them, something that really drives them. And it's not just driven by a bank account or a brokerage account or the number of commas. They're in a quiet asset accumulation phase. That what they're doing is they're slowly and quietly building their wealth. They're not parading it. It's not loud wealth. It's not loud millionaires. It is quiet millionaires. They are sitting back and saying, I'm going to accumulate. Think about someone like Warren Buffett who effectively hasn't changed a lot of his lifestyle from. From the good old days. Okay, I can say good old days because he's up there in age. But then there's those others that are overt consumers. Overt consumerism. It is blatant. It is out there. It is loud. It is. You know, But I can tell you that the ones that I have watched truly, truly building the richness in their life, not just the wealth in the bank account, they live through quiet asset accumulation. So if you're one of those that's sitting back saying, first off, I'm playing the internal game, second, I'm quietly accumulating assets, maybe, maybe you're on the right path. Right? Let's look at number. Number three. You actually have. They actually have a process that they follow. They have process and they have principles. Okay? And what I mean by this is that they're really looking at it from the perspective of knowing that they're making decisions based upon a system. Not a get rich quick system, but a process of money management. For instance, with us, I teach something called the wealth priority ladder. It literally defines what every dollar bill should be doing before you ever get it. Before you ever get it. And so what's happening is that they're just following the recipe. They're following the process to make it happen. So they're not spontaneous. They're not arbitrary. They're not haphazard. They're very systematic. They're very disciplined, and they're very dedicated to a process. Okay, think about this. I was on a live. I do. I do a live Q A show pretty regularly, and I had someone come on who I. I just envy this. This kid, and I'm gonna call him a kid because he just, literally just turned 18 just turned 18. And he says to me, hey, I'm not sure where to invest my Roth ira. Now. I told him in a prior call that he should be investing in a Roth ira, which is a special type of retirement account. I've done some, some content on it. But, you know, here he is at 18. At the time we talked, he was 17. And I said, and he said, I said, great. I said, let me ask you, how much have you put into the Roth? And I, and, and I'm thinking, I'm thinking he's going to tell me it's like 2,000 bucks. You know, he's 18 years old. How much can he put in? So he turns around, he says, he says, well, I fully funded this year's.

Roth and last year's Roth. I said, hold on a second. 18 years old, you put 60 $500 in for last year and $7000 in for this year already? And he says, yep. I said, At 18 years old, you put $13,500 away? He said, yep. In a Roth? He says, yep.

This kid is sitting on a gold mine. And he goes, what? I said, think about this. When you invest money on an average returns at 20 years old, it's going to convert by 90 times 9, 0 by the time you're age 65. I said, you put $13,500 in, that's going to go 90 times.

If you never put another dime in, it's going to turn into a $1.2 million. At age 65, you could stop today and know you'd be a millionaire. I'm not going to tell you to do that. I want you to keep going. But imagine what happens when you do this. Okay? He has a process that he's following. Do you have a process that you're following? Okay, number, number four, they know their current and they're willing to face it. Their current reality. It's, it's really easy to stick your head in the sand. It's really easy to sit back and say, I don't want to face it. I don't want to face it. So they stick their head in the sand about recurring. It doesn't matter whether you're in debt, not out of it. You have no debt. You're making a lot of money. You're not making a lot of money. That's not the question. The question is, are you aware of it? Are you in the game? So you have your fingers on the pulse, because until you do, you can't change it. The fact of the matter is putting your head in the sand.

As if it's not happening. I gotta tell you, even though your head's in the sand, you may not see the train coming, but it's still gonna hurt when it hits you. So we don't put our heads in the sand. So if you're sitting back and saying, hey, I, I, I'm focusing on the internal game, I'm focusing on quiet accumulation. I have a process to follow it. If you don't follow me, we'll get you the process. Okay? And I'm really real about my current reality, about my income, about my expenses, about my debt, you know, all those things. I'm being really clear. And of my current reality. You just might be on the path. All right, let's look at number five. Is that, is that you're really clear on your destination, where you want to go. Here's the thing. To simply say I want to be rich isn't enough, or to simply say I want to be richer. And you go, okay, if I gave you a dollar, then you're richer. We've accomplished it. The question really is, where are you going? What specifically are you trying to get to? This is something that I think a lot of advisors get wrong, and that is because they focus on your current levels of income. What I want you to focus in on is the lifestyle destination you want. So when I sit down with my wife or I sit down with a client, we spent the time, and we call this an affluence vision. And we craft out what we want that life to look like, we craft out what that lifestyle should look like. Whether, where do we want to live, specifically, how do we want to live? Do we want to work, do we not want to work? Do we want to travel? How much do we want to travel? How do we want to travel? Do we want to be camping? Do we want to be road tripping, do we want to travel, Travel, luxury, all the things, what does life look like? And then we take that life and we say, okay, what's the price tag of that life? It's an estimate, but it's giving us a trajectory, it's giving us a place to go. And now our job is to manage towards that destination. And those that actually are living that rich life, those that are actually doing well financially, they have a clear idea of where they want to go. Do you have a clear idea of where you want to go? You do. It might be. All right. Now, that leads to this next piece, which is number six, in that they have, they build a plan based on where they want to go based on where they want to go. They create a plan to get them to that. Now in our world, that plan is built around the process that we call the wealth priority ladder. It's using the system to achieve the destination through a plan to make it happen. In other words, they know specifically what they're doing, how they're doing it, how the dollars are being invested, how much they're putting in, why they're doing it. They know all that and they're keeping their fingers on the pulse. They're constantly checking it. Not constantly in the sense of every day. You'd be a frickin frenetic mess if you checked it every day. Okay, but they're checking it at least quarterly. Sometimes I check mine monthly. I mean, I'm looking at the market every day. I got it up here on another screen. I'm always looking at it because of the work I do. But my own portfolio, I look at it at a minimum of monthly. But we do a big look at least four times a year with me and my team and all that stuff.

So they build a plan, they use the system to build the plan. They walk through the system and, and, and exercise the plan and then they measure to the plan. Question is, you have a plan, if you have a plan and you're walking the the process of the plan, then you just might be doing better than you think. That leads me to number seven. Number seven.

They know that the most important part is to get in the game. They're not sitting back saying, when I make more money, I'll get in the game. When I achieve this, then I'll do that. And because here's what we know, the habits we develop at an early age of our earnings are the habits that will envelop us in the latter stages of our wealth. The habits that we develop in the early stages of our earnings are the habits that will envelop us in the later stages of our wealth. What do I mean by that? If we don't get used to making investments on a regular basis, when we can make a $5 investment, we will not make the $500 investment that we say we're going to do when we get there. They know that it's time to get to work. They know that they got to get in the game, stay in the game. They know that the only way to win the game is to be on the field, not the sidelines and not, not the stands. And so what we're going to do is you're going to get in the game. So let me ask you this. Are you in the game? Are you on the field? This whole. This whole episode, this whole video, this whole episode is a checklist for you. And if you are in the game, if you are investing regularly, we now, as part of our process, we want to push you to a point where you're investing 20 to 25% of your income on a regular basis. Now, I get it, you may not be able to do that up front, but we're going to build you there. And we can build you there 1% at a time, 1% at a time, and we keep building you there. But you're in the game, automated, and making the investments on a regular basis. Okay, that leads me to number eight. Focus on you. On you. They don't focus on everyone else. Focus on themselves. They look at it and they say, this is the life we want. So we're going to define it, we're going to refine it, and we're going to develop it our way. Just because our parents, just because of our siblings, just because others don't want the same life we want, it doesn't matter. So they're always defining the process, the journey, the destination, and their lifestyle based upon their wants, their values, their needs, and not others. So once again, if you are.

Defining your life, defining the destination, defining life, so defining your goals, defining everything based on your true real values in alignment with your vision, you just might be on the path, right? That leads me to the last one. And last one's a big one, okay? And I. I got this wrong. They know what enough is. And, and I'm not saying to stop, because I never, ever want you to get complacent about your wealth. I never, ever want you to get complacent about your money. I never, ever want you to get complacent about the relationship between your lifestyle, your wealth, and your riches. And because complacency is the first step to crisis, okay, when we get complacent, we start to lose. But what I do want you to do is to have the gratitude for what you have, the appreciation of what is, and to know where your finish line is. I made this mistake. I didn't know where my finish line was. I didn't define it. It's kind of like the destination, but knowing that number. And the problem is, is that if you don't know what enough is.

You will keep running as if you're miles and miles and miles away from it. You will run fanatically, you will run stressed, you Will run angry. You will continue to do that. I was doing that. It caused me to get into a bike accident. It caused me to have a grade four concussion. It caused me to have no feeling on the right side of my body. And as I was recovering, I literally had a friend of mine who retired at the age of 36 look at me. And as I sat there in a neck brace, it was three days out of the hospital. He looks at me and he says, how much is enough? I couldn't answer.

He says, what if the finish line is behind you, but you keep running this race? Now, I haven't stopped running the race. The difference is me knowing how much is enough. Me knowing where the finish line is has allowed me to have a piece about where I am, where I'm going and where I've been. So the question is, do you know what your enough number is? Because what that does is it gets you two blacks. It gives you the ability and the permission to not run so hard, to not be so stressed, to not have the anxiety, to not feel like. It's not enough, to not feel like more, more, more, more, more. To find the appreciation, the gratitude for what is what you got. Right? So let's go back through that real quickly again. These are. These are the things that.

Might give you an indication that you're on the right path. One, you are focused on internal versus external stimulus. Okay. Two, you are not playing the comparison elevate game, but you're also focused on quiet asset accumulation. Three, you have a process you're following. Four, you are really real about your current reality. Five, you've got a clear mind of what your destination is, a vivid picture of that destination. And six, you have a plan to get to that destination that is based upon a process that you know, works. Seven, you're in the game. You're on the field. You're getting the work done. You're staying in the game. Hey, you're always focused on you. Nine, you know what? You're an ethno. I hope that this helps. Listen, here's the deal. You have the opportunity, the ability to navigate this. You don't have to do it siloed. You don't have to do it isolated. You don't have to do it alone. That's why we're here. That's what this channel is for. That's what this show is for. So let's make sure that we keep you on that road to financial freedom. Let's give you the right tools that work, that have been proven over time and time again, no matter whether we're in boom economies or bust economies, no matter what is going on. All right, So I hope you have found this of value. I hope that you take it and you use it as the checklist for your life to make sure that you're on that path to doing well and living that rich life. Until I get a chance to see you in another episode, another video, or on the road. As I always, always say, always strive for the life.

Thank you for listening to the Affluent Entrepreneurship with me, your host, Mel Abraham. If you want to achieve financial liberation to create an affluent lifestyle, join me in the Affluent Entrepreneur Facebook group now by going to melabraham.com group and I'll see you there.

And that's it for this episode of Building youg Money Machine, where we help you learn how to master your money, eliminate financial stress, and live a life of choice. If you found this valuable or helpful to you, here's what I'd love for you to do. If you do me a favor, go to Apple, Apple Podcast, or wherever you're listening to this podcast and rate and review the show. It helps us tremendously to keep us at the top of the list so we can continue to get this information and this message out to people. Because I truly believe that financial freedom is your birthright and I want to help each and every one of you claim it. Thanks so much.