Why You Need to Focus on Wealth Not Just Making Money

Public Service Announcement…your primary financial goal in life should be to build wealth.

It is the only form of monetary gain you will be able to pass down to your children for their inheritance. And I would argue to pass down both wealth itself and the knowledge and understanding of how to generate it.

Being transparent I’ve been on a journey for the last 8 years to learn how to build wealth. What’s the difference between the money you make on a job (or in your business) and wealth? What makes wealth so powerful? Why is it so hard for some to build wealth and so basic for others? I haven’t come close to completing the journey but this is what I have learned…

  • Wealth is attainable for those educated and trained on the laws of how to generate it
  • Wealth is not money, but it encompasses money. Instead it is the ownership of assets that appreciate over time
  • Becoming a first-generation wealth creator is one of the most difficult tasks in life
  • Wealth is cultural. Some cultures teach it naturally and it is handed down like old furniture. Other cultures are clueless. They know it exists but don’t fully understand its purpose or how to obtain it.
  • Wealth is biblical.
  • Working a job won’t generate wealth. Investing will ( <- probably my biggest revelation right there)

Wealth generation is really the only way to get ahead in life. I see people working multiple jobs and long hours on a single job under the impression that more time equals more money. Thinking with more money they will be able to do more and have more. Here’s the harsh reality…

You CANNOT build wealth off earned income ( the money you make from your job/career by exchanging your time for dollars ). Our financial system was not built to enable you to build wealth. Earned income will allow you to get into to debt by enabling you to:

  • Buy a  house (and hopefully own it one day)
  • Lease a car (and hopefully own it one day)
  • Obtain student loans (and hopefully pay them off before you die)
  • etc.

Earned income allows you to enter a vicious cycle of making just enough to need more. Being able to look and play the part behind close doors drowning up to your eyeballs in debt. For most of us this is the reality handed down. It isn’t until you start living life and wanting more for yourself and family that you get tired of this cycle and realize you will never get ahead using that approach.

There are 3 ways to build wealth in America. These are called the Pillars of Wealth. They are real estate, the stock market, and business ownership. You CANNOT build wealth without using one of them. As you can see your job or career doesn’t fall into any of them. I’m just now coming into the light of this reality and am in the process of changing my thought process and approach to life.

My hope is that this post will enlighten all that read it and challenge you to start becoming more wealth focused than income focused. Stop focusing on amounts of money you make and start focusing on percentages. What percentage of your income are you saving? What percentage of your income goes towards living expenses and bill? What percentage of your income is cashflow? What percentage of your income is wasted? What percentage of your income can you set aside to start investing?

These are tough questions that bring forth a harsh reality. But it needs to be faced. This reality made me revisit my monthly budget and get realistic with what’s coming in and where I’m trying to take my family. It’s a hard journey but it’s worth it. There is no replacement for operating in truth, wisdom, and understanding. Don’t just work your job and keep your fingers crossed that at some point in life it will all turn around.

It won’t.

You must take heed to the structure of our financial system and understand the only way to truly succeed financially is through intentionally obtaining wealth. Not a paycheck.