Season 2 Episode #2 - Creating A Wealth Cycle By Loral Langemeier

Hello, Self Developers and welcome to The Patrick Kelly Podcast for Self-Development, where I will be reviewing  audible books on Self-Development that can change your life for the better this year, and years to come. It is said that if we keep on doing what we always did, we will keep on getting what we always got. In other words, to change our output, we first have to change our input.

Today is January 09, 2022, and This is Episode 2 of Season 2, and today we will be reviewing the audible book “Creating A Wealth Cycle By Loral Langemeier. This audible book teaches you how to become a Wealth builder. Focus on growing your net worth. Your net worth is your total assets minus your total liabilities. Build a wealth style instead of a lifestyle. Focus on getting rid of bad debt. Create an Asset account to put all of your wealth building assets in, that produce passive income. Focus on assets first, then your life style. The problem: We all are taught to go to school to get good grades in order to get a good job.  You will never make more money than the person that you work for. The only way to get out the rat race of having a job as your only source of income, is to create a wealth cycle.

The 7 Step Process To Creating A Wealth Cycle:

Step #1: Your Financial Conditioning: Your conditioning is how you think about money. Control the amount of time that you spend with people who are not going any where in their life. Find someone with a bigger, better brain that you can spend time with and will allow you to act like a sponge and absorb information that can change your life. Find someone who has the results that you want in your life. Find out what you really want in life and go after it.  

Step #2: Your Financial Baseline: Your financial baseline is critical. Your profit and loss statement and your balance sheet are two critical statements that you must learn how to read. Having a baseline is knowing where you are by knowing your income, your expenses, your assets and liabilities on a regular basis. Check to see if you are making money each and every month or losing money each and every month. What gets tracked, gets done. Money comes in and out of your life 3 ways. The 3 ways are: cash, checking and credit. Create a wealth cycle in order to know where you are, so you can know where you want to go.  

Step #3: Your Financial Freedom Day: Your financial Freedom Day is when you get the want to life, instead of the have to life.  It is the day that you have the cashflow, the assets and the amount of money that you always wanted. If you gain a million dollars in assets and get a 12% rate of return on the money each year, that will give you $120,000.00 per year or $12,000.00 per month to have many financial freedom days. Don’t plan forwards, plan backwards.

Step #4: Pay Yourself First: Before you pay anybody, you have to pay yourself first. What does pay yourself first mean? It means before you pay your car note, your mortgage, your credit card, your cellphone bill, your electric bill, etc. 10 to 15% of your weekly or bi-weekly income has to go to a retirement or investment account. Your retirement and investment accounts are not emergency accounts. Emergency accounts are separate accounts set aside in case an emergency happens, like your car broke down on the highway and will cost you $4000.00 for a new engine because you never changed the oil. Once you are paying yourself first, you can then set up a financial forecast. A financial forecast will predict how much money you can accumulate per year from continuously investing 10 to 15% of your income per month.

Step #5: Building A Foundation For The Wealth Cycle: See what assets are producing and see what assets are not producing. Find something that you love to do as a side hustle and turn it to a business in order to earn extra income. If you think that walking your dog is enjoyable and therapeutic to you, advertise to walk other people’s dogs who dislike, walking their own dogs. Find ways to make extra cash that you can put into your investment and retirement accounts, so you can reach your forecasted goals sooner. More income coming in, means more money going to your asset column.

Step #6: The acceleration of wealth cycle: Lead your wealth to very systematic approaches, to asset allocation. Get a wealth style foundation created. Learn to earn money and bring it into a wealth cycle so you can get rid of your bad debt sooner and accumulate assets faster. what gets measured gets done and what you focus on, on a daily basis, will expand. Poor people spend money, middle class people save money and wealthy people invest money.

Step #7: Leadership and Responsibility: Master the previous 6 steps and lead yourself into creating a wealth cycle. Know these steps to the degree that you can lead them. When you can control your own money, you can drive it where you want as if it were a car. Keep learning and keep growing. Don’t become a know it all, become a learn it all. Control your assets. Know where your money is going. Handle your financial conditioning. Get your financial baseline. Create a financial Freedom Day. Manage your lifestyle cycle. Create a foundation of a wealth cycle. Accelerate your wealth cycle through very strategic investments. And most of all lead yourself. Be responsible for your own financial destiny.

Closing Thoughts: On scale of 1 to 5, I would give this audible book, a 5, for teaching 7 steps to creating a wealth cycle.  

 *To find out more about this audible book, Go To: www.audible.com and download this audible book, or go to www.lorallangemeier.com to find out more information about the Author.

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