Colours of Wealth

Demystifying the alchemy of BUILDING WEALTH

BY WHITNEY HAMMOND, CFP, CLU PRINCIPAL, SOVEREIGN WEALTH MANAGEMENT Implementing wealth building strategies for business owners and executives for 25 years

Well you know what they say, “All that glitters is gold.” There seems to be a common theme that in order to strike gold and develop wealth, one must either call it right in the stock market or hit it big in a jackpot to make that overnight success. Not so.

There truly is a magical way of building your riches.The Gold Standard in Investment Management:

All that Glitters is NOT gold. Do we get distracted by shiny pennies and jump from one idea to another without focusing on one? Do we look at others and wish we had the same things they have? Are we all running so hard to keep up with the Joneses?

We relate gold with riches. We imagine people with wealth to be superior, when really its all about financial empowerment. Developing wealth may not be so much about becoming powerful, its more so about having the freedom to have options and having the freedom of choice. These are quite powerful.

Many of us consider people who generate wealth and gold riches to be magical alchemists. A simple definition of alchemy is taking something ordinary and creating something extraordinary, in a way that cannot be explained. Developing wealth can really look like a mystery to many. Let’s unpack this notion.

The 6 gold nuggets you need - to take your wealth from ordinary to extraordinary

Building wealth is done systematically over time.

Yes, one dollar at a time. Consider opening an investment account, whether it be a savings account inside of your corporation, TFSA (Tax free savings account) or RRSP (registered retirement savings account.) We all need to start somewhere. I know, this feels like a mountain of work, and we will never get there. But I can assure you from experience, money magically grows. Once the seed it planted, it grows, and more money is attracted. There is alchemy in this equation. Ask anyone how they built their big nest egg, and they will share, “I started, and it just magically took off! Money literally started coming my way. I hopped on board, and consistently saved a percentage of what I made.”

Work with a coach or mentor

Find someone, or ask to be referred to someone, who has “been there, done that.” I was so good at building wealth over the last four decades, that I decided 25 years ago to open an investment firm and teach others. I started with being mentored at a young age. Then I became an entrepreneur, strategizing to make myself profitable. I did not make a goal of survival, quite the contrary, I made a goal of developing significant wealth. It truly felt like a mountain in the beginning. I soon came to realize that we do not find our “pot of gold,” we build our “pot of gold” by systematically saving. Magically, this disciplined behavior created the ability to become an investor and here is where opportunities come to those who can invest.

Develop a wealth mindset.

I became a pilot 10 years ago. I very quickly learned there needs to be a direction and rudder for the nose of the plane to fly the course. This is the same with attracting and developing wealth. My thoughts continually lead me to wanting wealth for various reasons, the main one being freedom. Freedom allowed independence, which then lead to: • confidence • opportunity • leadership • giving • making a change • going on adventures, • flying (myself) to cool destinations And did I mention control? Yes control. It’s what my mind wanted, so the world alchemically opened it up to me.

Build a matrix.

Creative entrepreneurs come up with endless business and marketing ideas. We must measure for success: What works? Where is there too much energy? Where do I need to apply more energy? A business matrix can be as simple as the 10-3-1 ratio Call 10 people to book 3 appointments to make 1 sale Set a target: 200 clients x $50 = $10,000 If you double your revenue? 200 clients x $100 =$20,000 Working on the numbers makes it reasonable to bring in the revenue to create an investor out of yourself. Next Target: 5 years x 200 clients is now 1000 clients x $100 = $100,000 Systematically build your client base, focus on a matrix and then create your client base. What we focus on, WILL show up. Measure the numbers, lay out the plan and then work it. It works if you work it.

Establish long term relationships with customers.

When we develop relationships with our clients, we understand their needs, we know what keeps them awake at night, and we know how to make their lives better. The only thing constant in life, is change. When you meet your client at each stage of change, they KNOW you care, they KNOW you are there for them and they will continue to buy and refer other like-minded people to you. Customers for life. You nail this one down and “magically” you have created a thriving business.

Give, give and give again.

• Volunteer your time

• Volunteer your timePick a favourite charity

• Spend time with a client without a sales idea

• Collaborate and mentor others

Give of what was so freely given to you. Giving sparks transformation, it shows leadership and it reaps rewards. Incomes go up when we give!

Back to the pot of gold...

Build your business, service your clients, put money aside systematically each month, and increase the deposits regularly. Suddenly you will see, your pot of gold will be adding its own deposit each month, creating a snowball effect. Not only does your ordinary pot of gold become extraordinary, so does your life, your experiences become richer and richer. I cannot think of a more satisfying life of helping others, building financial freedom and being able to make decisions without limiting beliefs. The streets are paved with gold…. Use these gold nuggets and go out and live your extraordinary life!