The First Step to Building Wealth is Defeating Debt
How many stories have you heard about lottery winners, former professional athletes, celebrities, or someone who comes into money going broke? The average lottery winner is broke within five years from winning their millions. Why does this happen?
Many people ask me, “If you spend most of your time coaching and speaking on investing and building wealth, why did you write your first book on getting out of debt.” My answer has always been, “Defeating Debt is not a book on how to get out of debt, although it will show you how to do that. It is a money management book. When I sign copies of my book for people I always write, “The first step to building wealth is Defeating Debt.”
The main reason is because being rich, and building wealth is not about “making a lot of money.” One thing I always say is, “It’s not how much you make it’s how much you keep.” It does not matter how much money you have if you can’t manage it. Those who do not have money in their heads will not keep money in their hands. The first step is learning to handle your finances, and defeat debt. The second step is learning how to put your money to work and multiply it exponentially, which is what creates real wealth. But don’t skip the first step!
Building wealth is like building a great structure. The most important thing is the foundation you are building on. If your foundation is not strong, your amazing creation will crumble. Those who take on too much debt and mismanage their finances, even if they are high-paid like professional athletes and entertainers, will find themselves struggling to build any sustainable wealth.
Making a lot of money is great, and it certainly helps you build your wealth, but only if you manage it well. Whether you make a lot or a little, begin developing good financial habits. With the right foundation the sky is the limit!