Income generation - a key to building wealth

In the bible the book of Proverbs exhorts us to concentrate first on income generation before we concentrate on spending. Many people are locked into a lifestyle which can only just be supported by their current income and seemingly have no way of moving forward. Change focus and put priority onto income generation and the way will open up before you.

The first financial step that many Australians take is to get a big mortgage and buy an expensive family home BEFORE getting their earning capacity well established. This often leads to a life of struggle as they ‘rob Peter to pay Paul’ for much of their life whilst trying to buy bigger and better family homes.

Many Australians spend their lives working to pay off their family home and wonder why they never seem to build any wealth.

What proportion of my wealth is tied up in the family home? Have I started to think about building other investments as a means of increased earning capability?

Focus on building ‘your business’ whether this is a better career, an investment portfolio, or the development of a ‘hands on’ business and you will be securing your earning capability. Once your earning increases, you will find there is more money to go around even after giving on a regular basis!!

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