Hi this is Diane Kennedy. Today is Day 4 of the 30-day Coundown to the release of my new book, The Maui Millionaires™ that I co-wrote the book with David Finkel. The book is scheduled to be released on November 3, 2006, and from now until then I’ll be checking in every day with a Wealth Tip excerpt from the book, written either by myself or by my co-author, David Finkel.
Wealth Tip 4: Determine which Level of Wealth Building you are at and Focus your Energy on the Specific Goal of that Level
There is no one wealth strategy that fits all people. In fact, depending on the current status of your financial wealth building you will need to tailor your financial efforts in totally different ways.
There are essentially three levels of wealth building—Level One, Level Two, and Level Three.
Level One is about getting starting. You’ll learn more about it tomorrow, in Wealth Tip #5. Most Maui Millionaires™ take between six and twelve months to progress through this level.
Level Two is about aggressively growing your net worth. I’m going to cover that on October 7th, in Wealth Tip #6. For most Maui Millionaires™ it takes 3-10 years to progress through this level. This might seem like a long time, but compare that to the default plan in our society in which the average person works 40-45 years, then retires financially dependent on the government or family (if they are even able to stop working in the first place!)
Level Three is about converting your net worth into a passive, residual cash flow. That’ll be covered on October 8th, in Wealth Tip #7. This usually takes most Maui Millionaires™ about 24-36 months to intelligently make this transition.
What happens next? For many Maui Millionaires™ once they have become financially free with plenty of passive, residual income and healthy net worth, they take a short break, and find the next challenge for them to become passionate about.
For me, after I “retired” at age 36 having sold one of my companies, I took four months off and got very bored. At that point I started up two multi-million dollar companies in areas that I felt very passionate about. Also, I made sure that I structured the businesses so that they supported my very flexible and free lifestyle (e.g. working no more than 30 hours per week, work from anywhere I want, etc.). Finally, I made sure that I built in a very large giving component into the DNA of the companies from the start.
The results? Well one of the results was Maui Millionaires™. Not only does that company teach hundreds of thousands of people each year about financial mastery, wealth, and how they can become a Maui Millionaire™, but it also raises over a million dollars a year for charity. Level Three wealth builders isn’t the end, rather it’s the launching pad for Maui Millionaires™ to build an enduring legacy that will live on beyond their lives.
For more on Levels One, Two, and Three wealth building see, The Maui Millionaires™, pp. xix-xx, pp.186-189.