Automatic Wealth | Michael Masterson

Summary of: Automatic Wealth: The Six Steps to Financial Independence
By: Michael Masterson

Introduction

Embark on a journey towards financial freedom with ‘Automatic Wealth: The Six Steps to Financial Independence’ by Michael Masterson. Gain insight into the importance of passive income, and learn the value of spending wisely and saving diligently. Discover Masterson’s essential ‘Eight Habits of Highly Successful Wealth Builders’, and how to choose the best investment paths based on your current net worth. This book summary will walk you through crucial steps to creating a solid financial plan, ensuring a comfortable retirement, and living a life of abundance and fulfillment.

True Wealth

True wealth is not synonymous with material possessions like cars or mansions. It equates to financial freedom, which translates to liberation from unfulfilling jobs, bill collectors, and sleepless nights. Key to achieving financial freedom is having enough passive income to cover daily and future expenses, from housing and food to entertainment, education, and retirement. Passive income is money earned from investments that doesn’t require extensive working hours. To begin building wealth, one must live below their means and create a savings plan. It’s essential to determine the amount required for a comfortable retirement by estimating costs of necessities and personal preferences. A net worth of 10 to 13 times the estimated yearly costs is recommended. Planning for wealth may be challenging, but it’s not impossible to achieve financial freedom with dedication and calculated steps towards gaining passive income.

Launch Your Plans Now

Ready to create a steady stream of passive or extra income? Start by dedicating an hour a day to a new venture or monetary idea. Establish concrete financial, personal, and career goals. Create a timeline with annual, medium-term, and long-term objectives. Successful targets include industry networking, investments, and starting a business. Divide each annual goal into 12 categories and develop weekly and daily targets. Make planning an essential part of your routine with an allocated day for the yearly map, a couple of hours each month for the monthly agenda, a 60-minute weekly planning session, and 10 to 15 minutes daily for the daily strategy.

The Habits of Wealthy People

Generating wealth and living a comfortable life comes with acquiring and maintaining habits that distinguish the wealthy from the average person. The “Eight Habits of Highly Successful Wealth Builders” include working hard, building strong skills, developing different sources of income, buying relatively modest homes, spending moderately, saving judiciously, paying the home team first, and counting dollars. Successful millionaires work up to 59 hours a week and enjoy their work, while mastering their business skills to tackle new opportunities. The wealthiest people have more than 12 sources of income, and they live in relatively inexpensive homes to reduce expenses. They maintain a disciplined lifestyle, holding down spending, and saving more than they spend. To become wealthy, an effective savings plan is crucial; one must consistently stash a pre-set amount of their salary into savings and take frequent and periodic inventory of their income. Similarly, renewable annual contracts should be established to save more each year than last year. Financial success comes with adopting and sticking to such habits rather than quick fixes like budgeting.

The Path To Wealth

To achieve financial success, you must focus on increasing your income by finding ways to generate revenue. A significant merit-based salary increase is one option, as is launching a part-time business and investing in income-generating property. Astronomic income is only achievable by being an “invaluable” performer, which means delivering outstanding results and quietly broadcasting them. Investing in skills and qualifications that meet the demands of high-paid positions in your industry is another way to increase earning potential. Launching a part-time venture utilizing other talents, such as a consulting business or sales and services firm, is also possible. Real estate investments are an additional option. To succeed in these endeavors, expect to buy below-market value, choose known neighborhoods, compare square-foot costs, and carefully create realistic investment plans.

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