The Three Legs of the Wealth Stool

To build wealth long-term, utilize a three-step process. For most, this process takes years of patience and consistency, but the rewards are worth the effort.

The first leg of your wealth stool is your business. The purpose of a business is to provide excess cash to invest. Dedicate the time and effort to build a reliable cash flow stream. Goal-setting, budgeting, and discipline are important tools in this process. After the bills are paid and sufficient reserves exist for emergencies and capital improvements, you can move on to step two with the excess funds.

Step two is the acquisition of revenue-producing real estate. Over time, you use the excess cash generated from the business to fuel the purchase and debt retirement associated with the transactions. There are many systems for doing this and it’s important to establish your own rules and stick to them. Your rules govern the types and circumstances under which a property enters your portfolio. Patience and discipline are again important as Brad has found that he needs to look at 50 properties, select 10, make offers on 5, and purchase 1. Once your properties are cash-flowing positively, you can move to step three.

The last “leg” of your wealth stool is the investment in stocks for the purpose of generating capital gains. Careful research and discipline will point you toward the right choices. Once you are “balanced” in these three areas, a change in market conditions that is unfavorable to one will usually be favorable for another. As always, a carefully crafted plan, regularly reviewed, tested and measured, provides you with the information to make informed decisions.

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About markraciappa1

Mark Raciappa comes to ActionCOACH after 33 rewarding years in the Grocery Industry with the most recent 13 as Owner/Manager of his own store. During his tenure, he took over three different stores that were losing money and restored them to profitability by improving Sales, Marketing, Team Performance, and Customer Service. Along the way he earned a Bachelor’s Degree in Business Management from Florida State University. His proven track record of success assures his clients of results in their businesses as well.
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