In this section, I’m going to share some teachings on putting these financial Instruments into context and perspective. Plus, you might realise some areas of potential and opportunity for you to work on to get your WealthSPEED® going faster, just like in our wealth creation car analogy. That’s the objective here; make your WealthSPEED® go faster. The faster it goes, the better your financial story and future retirement will play out, and for some, the quicker you get to your financial peace destination.
Gaining further context and perspective:
Outside of the simple wealth creation car analogy, where you can quickly relate your speed to how fast you are going and the wealth you have built up to the distance you have travelled, there are other ways that also help with gaining further context and perspective.
One such way is to review your WorkingIncomeSPEED™. Your WorkingIncomeSPEED™ tells you what your hourly rate of income is for every hour of every day of the year. That’s right, it’s broken down into the 8,760 hours there are in a year. You know how hard you work for that money, also not forgetting any travel time or hours you think about work, but you’re not getting paid a wage for this time. By breaking it down into an hourly rate across the year, it allows you to then get a greater perspective in which you can relate to the other speed indicators and gauges.
If you are like most people who first learn about this stuff, you are going to immediately compare it to your WealthSPEED®, then you will compare it to your PassiveIncomeSPEED™. Depending on where you are right now on your wealth-building journey, there could be a significant difference between your WorkingIncomeSPEED™ and your PassiveIncomeSPEED™. Hopefully, this new realisation is going to strike a chord in terms of any immediate work that needs to get done from this point forward to improve one’s PassiveIncomeSPEED™