The final blog post in this special series all about the Wealth Wheel will be about how to speed up the process. In other words, once you have used the Wealth Wheel to earn more, reduce expenses, and to invest, how you get results more quickly?
Remember, most people think in a linear fashion and aren’t impressed by Forever Cash assets. They think: “If I create one Forever Cash Flow stream a year that brings me $500 a month, it will take me twenty years to get to $10,000 a month.”
But that is faulty thinking, because if you reinvest each new stream of Forever Cash and add it to your short-term savings, it will help to fuel and speed up the next investment, each investment compounding your monthly income and making the waiting time between investments smaller and smaller.
When you realize how these initially smaller numbers compound and fuel each other and add up to a nice, big number after just four to five years, it’s easy to see how the whole process can be sped up even more:
- Make even more money
- Reduce your expenses even more
I am not telling you to cut up your credit cards, to lose the iPad, not to go on vacation. But you want to be aware of the relationship between expenses and the speed at which you are proceeding and that the more ongoing unnecessary expenses you have, the longer it will take to get to your goal.
The Wealth Wheel process is a great way to get to where you want to be financially. It involves controlling expenses and generating more income – playing offense and defense at the same time. But if you want to see more progress in a shorter amount of time, the method can be sped up by being more disciplined. But the effort you put into this project will be well worth your while.