Everyone has financial goals. From planning for retirement to paying off student loans and everything in between, money plays a factor in almost every decision we make. Without the right tools or strategies put in place, reaching the peak of financial freedom can feel impossible. But it doesn’t have to. Understanding and utilizing the Principles of Prosperity can make you feel more confident about how you handle your money. These principles can also help you develop the right processes for growing your wealth and achieving financial success.
What are the Principles of Prosperity?
There are 7 Principles of Prosperity. When all 7 principles are employed, building your wealth becomes much easier. Here’s what to know about each step.
We’ve all heard the phrase, “mindset matters,” but how does that pertain to growing wealth? Well, just as in other areas of your life, your money mindset is important. Your view of money and wealth plays a determining factor in the strategies you use to manage it. Believing you can be prosperous will help you achieve prosperity while falling prey to fear will keep you feeling stuck.
When it comes to growing your wealth, you need to focus on the big picture. Each financial decision you make now will impact your future wealth. By keeping that in mind, you’re able to align your wealth building strategies with your retirement goals and make sound financial choices to reach those goals.
Compounding interest is prosperity’s best friend. Spending money, rather than saving or investing it, eliminates its financial gains. Rather than accruing interest and growing over time, spending money causes you to lose out on those benefits. So, it's important to measure the cost of opportunity while building your wealth. At the very least, you should have an awareness of opportunity costs because doing so can help you recover those losses.
We’ve been conditioned to believe our wealth is measured by our net worth. While net worth can be a helpful marker on the pathway to prosperity, it is not the only or best way to determine wealth. Instead, measure your wealth by cash flow. Your net worth could be a million dollars but that million dollars may be tied up in ways that limit your ability to access them quickly.
One of the most important factors of building wealth is remaining in control of your money. By relinquishing control to financial institutions, your essentially providing those institutions with money to loan to others. Being your own banker ensures your funds are used to grow your own wealth, rather than the wealth of those institutions.
Accumulating wealth by leaving your money in one place, like a savings account, may seem like a safe bet for continued growth. The truth is, continuing to put your money to use accelerates prosperity. The goal is to make your money work for you at all times.
Prosperity relies in part on multiplying the functions of your dollar. When your money is only given one or two jobs, it limits how it can perform. By assigning multiple functions to each dollar, it is given more opportunities to accumulate value.
Sage Wealth Strategy Can Be Your Guide to Prosperity
Unfortunately, certain areas of the financial world can lack transparency for everyday consumers. There tend to be gatekeepers of information and strategies, which can make wealth management much more difficult than it needs to be. The good news? With the proper guide, you can learn how to navigate the financial world and take control of your financial assets and future.
As a Prosperity Economics Advisor with Partners for Prosperity, I am well versed in using the Principles of Prosperity as a tool to grow accumulate wealth. With these principles in mind, I can help you develop the strategies needed to set you on the pathway to prosperity.
I work with you to identify your financial goals, whether that be planning for retirement or something else. With your goals in mind, we will work on employing these principles by first addressing the way you think about money and focusing on the big picture-the fruition of your goals. By changing your financial perspective, you are able to make sound decisions regarding your financial situation.