How to Build Your Own Wealth System

The parts of a wealth system are simple.

How you connect them is where the art of design comes into play.

The mandatory components are:

• Budgeting and reconciliation system

• Income generating engine(s)

• Asset and liability tracker

• Savings fund

Essentially you need at least one wealth engine in your system. You need to be able to track the progress of your asset buildup (and your liabilities, too) alongside having a clean view of your expenses.

“It’s not what you make, it’s what you keep.”

Wise words. A legitimate wealth system will enable you to understand what you think you are spending money on, what you really are spending money on, and the accuracy of these forecasts over time.

Budgeting and Reconciliation System

This is the control center. It needs to be a system you can stick with. Consider using budgeting apps, spreadsheets, or a combination of tools.

Regular reconciliation (comparing actual spending to your budget) is key to identifying areas for improvement and adjusting your plan.

Being abl…