When you hear the term “invest” most people’s first thought is “investing in real estate” or some other form of investing. Investing in yourself has an entirely different meaning. Investing in yourself is the continuous improvement of your wants and desires by taking the steps necessary to find and create true wealth.
Those who are truly wealthy did not just meander throughout life. They discovered and continued to uncover that their goals and desires continued to shift over time. Investing in yourself and others is the fourth foundation of The Four Foundations of Wealth Creation.
Passive income is a phrase that I hear everyone is chasing after and seeking out. True passive income requires a tremendous amount of active participation over a long period of time.
To understand passive income in the correct form, it is important to have a system. Before you can truly begin to invest in yourself and others, you need to have generated monthly income, identified tax savings, and protected your income.
I recommend investing in the following order:
1. Invest in Yourself:
Invest in yourself first above all else. There are a plethora of ways that you can invest in yourself:
Expand your network
Schedule a business trip
Invest in a mentor/business coach/therapist
Investing in yourself is the biggest takeaway you can get from reading this. Creating true wealth begins and ends with you.
2. Invest in Your Business:
After you have invested in yourself, you can start investing into the professional aspect of your life. If you are a business owner, always invest in your business before investing into anything else outside of yourself.
Here are a few outcomes of what investing in your business will do:
Create a positive work culture
Improvement of your team
Grow and scale your business
3. Invest in Passive Activities:
No activity is truly passive. It all takes work one way or the other, unless you are paying someone to do the work. My recommendation for investing in passive income is that you should have at least $100,000 in your bank account that you have put aside FOR passive income.
Investing in yourself first, then your business, and then others is the order you should go in to ensure you are creating true wealth. But it is important to note that mastering the first 3 foundations of wealth creation is imperative to mastering this foundation. The 4 Foundations of Wealth Creation will set you up for building long-term wealth, if you execute each foundation properly.