How I Am Becoming Wealthy (And So Can You)

Wednesday, 8th February 2012 - Michael Halls-Moore - 0 Comments

I'm writing a series of short articles to help my friends who have asked me how they can stop working as a full-time employee and become wealthy enough to retire early. I imagine a large degree of the population wishes to achieve this, but never really stop to think how to go about it. It is certainly possible. I count many people who have achieved financial independence as good friends and I myself am on my way towards being in that situation.

When writing a series like this, there are many assumptions that must be made about the profile of the individual reading it. I am assuming that you are currently a full-time employee, with some or a lot of debt (excluding mortgage debt), not much spare time and little or nothing in the way of savings. You may or may not have a mortgage, but I will write this assuming you do not.

I want to state right now that a lot of what I am going to say or suggest will be considered controversial and unusual. Frankly, this is why so many people are not wealthy - they do not seek sources of advice for changing their situation and become suspicious of behaviours that deviate from 'the norm'. You will need to significantly adjust your mindset to follow this advice. It is not an easy transition, but once you have made it, it will feel incredibly liberating.

Since my blog reaches an international audience, I would like to state that most of the technical information I discuss in here will relate to the British/UK locale. Thus I won't be talking about US Treasury Bonds or 401k accounts. I will be talking about ISAs and SIPPs. However - most of these articles will translate extremely well to US and other locales as becoming wealthy is really about mindset and motivation, not the technicalities of financial structures.

The following outlines my plan for becoming wealthy - a plan you can easily follow yourself:

1) Forming the Mindset

2) Increasing Your Personal 'Profit'

3) Freeing Up Your Time

4) Gaining a Financial Education

  • The Power of Abstraction - Understanding the Financial Landscape
  • Your Biggest Expense - Taxation
  • Legal Structures - Sole Traders, Partnerships, LLPs, LLCs
  • Personal Financial Structures - ISAs, SIPPs, Mortgages
  • Capital Finance - Equity and Debt
  • Markets, Asset Classes, Risk and Return
  • Mathematics and Finance - A Great Partnership

5) Producing and Investing in Assets

  • Creating Your Own Assets - Entrepreneurship
  • Investing and Trading other Assets
  • Using Cashflow to Finance Additional Asset Purchases
  • Creating an Optimal Investment Portfolio

6) Being Wealthy

  • Managing Wealth
  • High Risk Investing - Private Equity and Hedge Funds
  • Giving Back - Philanthropy, Endowment and Charitable Causes

If you have any suggestions for further articles, please contact me.

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