How to Get Into the Top 1% Part I
To be in the top 1% of income earners in the U.S. an individual needs to make a little over $37,000/mo. I believe everyone should aspire to make it into the top 1%. However, it isn’t just as easy as wanting to. Otherwise everyone would be there. The problem is that you’re chasing the wrong targets. You’ve been told to buy a house, invest for retirement, pay your debt off, build a nest egg, and have a nice net worth that makes you comfortable. The top 1% do not operate on this data. I am going to provide you with the numbers that the top 1% focus on and how to measure them.
1. Savings rate: your savings rate is the percentage of your gross income that should go towards savings. The top 1% have saved 40% of their gross income and you should too. Most people save 0-5% of their NET income and they do it as an after-thought. Save 40% off the top FIRST. Why? Because it will help you get $50,000 saved (your first target) faster. Setup a sacred account (click here to have me help set one up for you) and commit 40% to the account first thing, right off your gross income. You will be scared. Why? Because it is a commitment you can’t back out of and it will force you to earn more income. You can track this number for yourself by dividing the amount of money you save per month by your gross income.
2. Passive income rate: This number measures the amount of your income that is passive. On average, the top 10% of our nation’s wealth have about 44% of their gross income coming from investment real estate. This is passive income. This number should always be increasing because your assets should always be growing. The way you measure this number is by dividing your passive income per month by your gross income per month.
3. Personal rate of return: This number is actually more important than your net worth. The is the amount of passive income in ratio to your assets. Assets are not valuable if they don’t pay cash flow. This number does need to increase annually by at least 4%. Why? Because 4% is inflation and you need to out-earn inflation. The way you calculate this number is you will take your monthly passive income, multiply it by 12 and then divide that total by your total assets. (YOUR HOUSE DOES NOT GET INCLUDED IN YOUR ASSETS).
These are numbers that most people don’t know to track. Why? Because we were not taught to save 40% of our income and to build passive income and measure our personal rate of return. This is what I do. I create plans for my clients to build wealth, track these numbers, and follow the exact steps needed to own your potential. To do this you must decide you want to be wealthy, build a blueprint, and then build your team to help you implement the blueprint. You also need to be operating on the proper information. I want to give you the opportunity to get this information. I am giving you access to a free personal finance course that will give you the steps you need to build wealth. Click here to get access.
Own Your Potential,
Grant Cardone Certified Coach
Jerry Fetta helps his clients make money, keep it, and multiply it.
He believes everyone should own their potential. He believes you were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.
However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.
Jerry helps his clients create wealth that exchanges time and money on their behalf.
His clients see a 30% increase in income, a guaranteed increase in savings rate, and 8-12% fixed annual returns on their assets in the 1st 90 days of working with him.
To get started, go to www.WealthDynamX.com/potential