Your Circle of Wealth
Your Circle of Wealth
Your Circle of Wealth represents all the money you have and will ever have. It consists of what we call accumulated money, lifestyle money and transfered money.
You can increase your circle of wealth by either increasing your income or by changing how you manage the three pieces of your wealth pie. Let's explore these pieces to better understand how we can help you increase your circle of wealth.
Accumulated Money
Accumulated money is the money you have accumulated over time by way of savings and investments. You will expand your circle of wealth by expanding this portion of your wealth pie. But how do you expand your accumulated money?
The common philosophy to wealth creation attempts to expand your accumulated money by seeking out new investments which offer higher returns, but at the cost of higher risk. Fortunately there is an alternative! Let's continue...
Lifestyle Money:
Lifestyle money is the money you spend to maintain your chosen lifestyle and represents your standard of living. Your lifestyle money includes such expenditures as the home you live in, the car you drive and even the clothing on your back.
The traditional philosophy to wealth creation requires that you sacrifice your lifestyle today in order to have a better lifestyle tomorrow. This usually involves cutting your expenditures in order to save a larger portion of your income for investment purposes. Fortunately there is another solution! Let's continue...
Transfered Money
The final piece of your circle of wealth is transfered money which is the money you give up, knowingly or unknowingly through payments to financial institutions, government and others.
Transfered money includes such payments as taxes, insurance, and interest and will always act to decrease your circle of wealth, now and in the future.
