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Working harder and longer is not going to make you wealthy!

Written on the 26 June 2011 by James Cagney

Working harder and longer is not going to make you wealthy!

John D. Rockefeller said "If you want to become wealthy....you must make money work for you. The amount you get paid for your personal effort is relatively small compared with the amount you can earn by having your money work for you".

We need a paradigm shift in the way we think. We believe the way to wealth is through WORK, WORK, WORK. This concept is so far from the truth these days because:

  • If you earn more you are taxed more.
  • If you work harder you get the promotion and so you work even harder and longer hours.
  • If you earn more you have to move to a bigger house (to show off).
  • If you earn more you have to move to a better neighborhood (to keep up with the Joneses).
  • If you earn more you have to eat out at expensive restaurants with your friends and colleagues (you have to shout for the meal - it's the done thing).
  • If you earn more you simply have to put the children into a better school (they just have to be with the other rich and spoiled rotten kids!)
  • If you do this the kids will simply have to have the latest I-Phone and "have to have" electronic toys (the more expensive the richer the parents are)
  • If you earn more you have to go on exotic holidays (something to brag about at the office)
  • If you earn more you will have to have the gold credit cards (use one credit card to pay off the other).
  • If you work harder and longer you will older quicker and spend your money on your health.

In other words - Get ready for more DEBT and not wealth by earning more money !!!!!!!

We have to change our thinking from "Work = Income" to "ASSETS = INCOME". Only by acquiring INCOME PRODUCING  ASSETS can you be sure you will become independently wealthy. This is the only protection you will have because when you turn 50 years old the young Turks at work will get rid of you - they will say your thinking and management methods are "outdated', "archaic" , etc etc. Try and get a new managerial job when you are over 50 and you have been retrenched. Welcome to the scrap heap of "HAS BEENS".You will then have to live on your savings because you simply can't take a lower position. What will it look like on your resume? What will the Joneses think?

Eventually you will have to sell the large house, move to a not so great neighbourhood, drive a smaller and older car, your kids won't come to visit you (the're graduates now and it's beneath them to go to that side of town), you will have to take a job delivering mail in letter boxes (you can always pretend it's for exercise if anybody you know from the old neighbourhood sees you).  So have a paradigm shift in your thinking NOW before it's too late or you have to lower your standard of living later.

One method of acquiring wealth is to purchase multiple investment properties. Not only will it reduce your income tax when you are on the "way up" (through negative gearing) it will give you income when you need it later in life (your golden years). It is possible to take out "Interest Only" loans and still own the property by buying multiple properties. You just wait for the capital growth over time and sell one property to pay off two properties. James Cagney can explain this "compound growth" concept to you - after all the bankers have got rich using the concept of "compound interest', you can use the same principle to gain wealth right now and starting today.  Email James at:  jfc@jamescagney.com.au and he will give you valuable, life changing advice that will ensure your "dreams" for retirement do not  turn into a "nightmare".   

Go to www.jamescagney.com.au for more information on planning for your future. The "News" section has interesting articles on building wealth through property. Please click on the highlighted words to go to the section you want.

Author: James Cagney
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