How often do you plan to update your net worth statement factoring in revenue and principal paydown only? If the answer is yes what is the percentage of your wealth assets you should set to nonrevenue assets?Ĭan you afford to hold an item in your financial portfolio without putting in a current estimated value of your memorabilia? What’s the Wealth Challenge for You?Ĭan you afford as part of your wealth acquisition strategy to hold wealth with no monthly revenue return in your financial portfolio? This increase in value should it happen be a bonus not a monthly derivative of your financial plan. Let someone else have the sensation from these items you use to love. At some point, they may no longer bring you any satisfaction it is okay to sell.
Should these items go up in value over the years, excellent. If you are a collector of any memorabilia or a fan of an artist and enjoy the pleasure derived from owning these objects ensure these items are not part of your monthly revenue source.Įnjoyment of these items awakes all or some of your senses is fantastic, and this enjoyment can give you such a high return in life. You can only access the funds from the value increase if you sell all or part of the asset. An increase in the value of the asset is not a constant revenue source. Do you know how real this equity growth is?Įquity growth should always be the least important factor when you acquire wealth.Is your acquisition of wealth paying you a dividend or revenue on a constant monthly basis?.If you purchased wealth with borrowed funds are you seeing a principal paydown immediately?.The challenge for you is your purchase of wealth does it begin with a return on your principal invested?.Your purchases of wealth can come from many different sources. When you purchase items to bolster your wealth are you asking the following questions to see if your decision to acquire more wealth has a compounding effect to earn more wealth. Is Your Wealth Acquisition Passing the Test? These three components of wealth growth can lay the foundation for all areas of your wealth accumulation. I have mentioned in a previous blog post the three main components of wealth growth in your investment real estate portfolio are: People try an catch the tide up just as the wave is cresting. Many folks purchase items into their financial portfolio with the dream of these items going up in value. I am a firm believer when you start to accumulate wealth your wealth should create more wealth. I often talk about sustainable wealth versus wealth.