As we continue on our journey to create wealth, today’s guest proves that we must be the captain of our own ship. While financial advisors can be great assistance, we need to understand and be educated in creating and managing our own wealth. This topic can be confusing for many and that’s why Mel Abraham joins Cayla for this discussion on building wealth and the common mistakes people make with their money.
Mel helps business owners and entrepreneurs build meaningful businesses so that they can have more profit, fans, and freedom. His principles help customers become raving fans and create fulfillment from a business that is congruent with your values, in alignment with your higher vision, and connected to all stakeholders at an emotional level. He helps bring people’s dreams out of the darkness and see the light again. He is a globally recognized thought leader, financial expert, best-selling author of the book The Entrepreneur’s Solution: The Modern Millionaire’s Path to More Profit, Fans, and Freedom, and a highly ranked podcaster.
In today’s episode, Mel and Cayla discuss what it means to truly build wealth, where and why to invest money for your future, and how to change your mindset in order to plan for the lifestyle you want. You will learn all about the must-have qualities of a financial advisor, the different kinds of debt and their purpose, celebrating the journey, and so much more. Whether you are already investing and building wealth, just getting started, or haven’t started at all, this episode is for you.
You will learn:
[3:16] - Cayla introduces Mel as the Affluent Entrepreneur.
[4:40] - Money issues don’t exist. They are money symptoms and results of choices.
[6:12] - Mel shares an experience with an investment he made that demonstrates the importance of your own interpretations.
[8:57] - It is not too late to get started, but get started now.
[9:54] - Mel describes the wealth creation mindset and how it applies to entrepreneurs.
[11:01] - Building wealth is a quiet process.
[11:50] - Don’t beat yourself up if you haven’t started yet.
[12:48] - Should you hire a financial advisor?
[14:01] - Financial advisors should have three specific qualities.
[16:21] - Mel explains the difference between fiduciaries and brokers.
[18:30] - What if you have debt? Should you get rid of your debt before investing in building wealth? Mel doesn’t think so.
[19:33] - There are different kinds of debt. Productive debt can increase your wealth.
[22:31] - If you get money invested earlier, it can turn into more over time.
[23:34] - Mel shares the story of a client getting out of 6 figures worth of debt while building wealth at the same time.
[24:20] - We need to celebrate our progress rather than waiting for our achievement.
[26:18] - Journaling is a great way to reflect and slow down enough to celebrate.
[28:03] - Where you are in your life plays into your risk tolerance and risk capacity.
[29:58] - There are three different types of investments you can make. Mel describes each kind and gives examples.
[32:33] - When your emotion gets involved, it will stress you out. Mel gives advice on where to begin.
[35:24] - Real estate is the one market that has all the different qualities to make money in different ways.
[36:58] - Where should you put money for the first time? Even if it is a small amount, exercise your wealth creation muscle.
[39:17] - Mel explains what he is doing for his granddaughter to set her up for financial success and education.
[41:25] - Affluence is not opulence.
[43:05] - Your retirement is up to you. Don’t plan on the income. Plan for your wealth target and lifestyle.
[45:43] - Mel believes that financial independence is a birthright.