How To Build Wealth in your 30s in 7 Steps

How To Build Wealth in your 30s in 7 Steps

This week on the Big Success podcast, Kevin Whelan, economist, author, and founder of Wealth Builders, is here to discuss the subject of success and wealth. He’s going to share the key to success is being able to do exactly what you want to do when you want, with who you want, and unlocking the power of your intellectual property is key to this.

Kevin Whelan will share his definition of success, his experience of financial independence, and The Seven Pillars of Wealth, which is an essential system to get Financial Freedom. What strategies can I use to maximize the value of my intellectual property? I’ll outline how Kevin Whelan did it in detail. Tune in to this week’s Big Success podcast to learn how to unlock the power of your intellectual property and maximize its value. 

About Kevin Whelan 

This week, The Big Success Podcast is all about wealth. Tune in to hear economist, author, and founder of Wealth Builders, Kevin Whelaner, discuss the subject of success while exploring how to build wealth both inside and outside of business. With his coauthor on the UK version of The Wealth Coach, Kevin will provide insight on how to achieve the freedom that comes with success and how to take control of your own destiny. So, join Kevin Whelaner and the Big Success podcast to learn more about success and wealth. 

How Your Intellectual Property Will Help You Build Wealth 

Maximizing the value of your intellectual property is essential for Wealth Builders. Intellectual property includes patents, trademarks, copyrights, and trade secrets, and it can be the most valuable asset a company has. By protecting your intellectual property and maximizing its value, you can leverage it for growth and profit

Protecting and maximizing the value of your intellectual property is important because it allows you to monetize it in the future. It also gives you the ability to control how your brand is used and to prevent competitors from taking advantage of your hard work. Additionally, if you are ever looking to sell or invest in your business, having a strong intellectual property portfolio will enhance its overall value. Therefore, maximizing the value of your intellectual property is essential to the success of a Wealth Builder.  

What is Generational Wealth?

Generational wealth refers to the accumulated assets, resources, and financial advantages passed down from one generation to the next within a family. It goes beyond an individual’s lifetime, with the primary intention of providing for and benefiting future generations. This wealth typically includes real estate, investments, businesses, and other assets that have grown in value over time. Generational wealth is often used to create financial security, fund education, or support various opportunities for descendants.

The concept emphasizes a long-term perspective on financial planning and aims to break the cycle of financial instability, enabling each successive generation to start from a more advantageous position and continue building upon the wealth passed down to them.

Build Wealth in Your 30s

Building wealth in your 30s is a crucial step in achieving long-term financial goals, especially if you want to retire comfortably. As you enter this pivotal decade, consider consulting a financial advisor to help craft a sound financial plan. Start by contributing to an IRA or Roth IRA to take advantage of the stock market’s potential for growth.

Max out your retirement accounts to ensure a robust retirement savings portfolio. While focusing on investments, keep an eye on your credit score, which can impact your ability to secure a favorable interest rate on a mortgage or other loans. It’s essential to save and invest diligently, even if you can only set aside a small amount of money from each paycheck.

This disciplined approach can snowball your savings over time, allowing you to increase your income, support your long-term goals, and maintain a comfortable standard of living. Avoid get-rich-quick schemes and instead prioritize diversified investments, like mutual funds, offered through a brokerage or investment account.

Building an emergency fund with three to six months’ worth of expenses and creating high-yield savings accounts for specific savings goals are also smart financial moves in your 30s. By starting to save and invest now, you’re laying the foundation for long-term financial success.

Retirement Savings, Emergency Funds, Mutual Funds

Retirement savings are a critical component of one’s financial plan, ensuring financial security during retirement years. Consisting of contributions to retirement accounts like 401(k)s, IRAs, or pensions, these funds grow over time and provide a source of income when you stop working. An emergency fund, on the other hand, is a financial safety net, typically kept in a readily accessible savings account, to cover unexpected expenses or financial setbacks.

It serves as a cushion against unexpected job loss, medical bills, or home repairs, offering peace of mind and preventing the need to dip into retirement savings prematurely. Mutual funds, meanwhile, are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They offer an opportunity for individuals to invest in a diversified portfolio, managed by professionals, making them a popular choice for long-term wealth-building and retirement savings.

How-To-Build-Wealth-in-your-30s-in-7-Steps

Here Are the 7 steps to Build Wealth

1. Find out what success means to you

Kevin Whelaner emphasizes that building wealth starts with understanding what success means to you. To him, it involves the freedom to do as you please, when you please, without being dependent on a traditional job. Success, in his view, requires breaking away from the conventional mindset and recognizing the transformative potential of change. He also underscores that embracing failure as a learning opportunity and taking action, even if it initially leads to failure, is essential for wealth building.

Kevin advocates comprehending the seven asset classes, including home, investments, property, business, intellectual property, and royalties, as a way to achieve financial success. He highlights the importance of having a well-structured plan, prioritizing tasks, and efficient time management in your financial life. Furthermore, Kevin believes in surrounding oneself with supportive mentors and like-minded individuals, stressing the significance of meaningful relationships and guidance on your journey to building wealth and protecting your generational wealth.

2. Understand the definition of an asset and the seven asset classes: home, pension/superannuation, investments, real estate, business, intellectual property, royalties, and joint ventures/collaborations. 

Understanding the essence of an asset and the seven asset classes is the foundation of wealth building. Wealth, by definition, grants you the freedom to choose when and how you work, your collaborators, and your endeavors. It’s the key to controlling your destiny. Wealth materializes by acquiring assets that generate income while you sleep, encompassing a home, pension/superannuation, investments, real estate, business, intellectual property, royalties, and joint ventures/collaborations.

Each asset class entails a unique strategy for wealth building. For example, real estate necessitates market understanding, property acquisition skills, and rental income generation. Intellectual property involves recognizing the value of your knowledge and effective marketing and teaching. Joint ventures and collaborations require partnership identification and fostering mutually beneficial relationships. A comprehensive grasp of these seven asset classes and their corresponding strategies is imperative for wealth building.

Diversification is the linchpin of building wealth. Allocating your resources across these seven asset classes mitigates risk and optimizes returns, contingent on your risk tolerance, financial aspirations, and investment horizon. Tailoring your investments to match your goals and values is crucial—investing in ethical, sustainable assets with positive societal and environmental impacts aligns with this philosophy.

Crafting a well-structured plan, underpinned by a thorough analysis of your financial status, realistic goal setting, and a deep understanding of the requisite strategies, is imperative. A defined timeline and progress tracking will maintain your motivation and trajectory toward achieving your wealth building objectives, ultimately securing financial independence and generational wealth.

3. Take control of your destiny and do things you enjoy. 

Embarking on your journey to wealth building starts with taking the reins of your own destiny and engaging in activities you’re passionate about. This journey is all about understanding your true self and leveraging your passions to excel. It entails embracing risks, learning from mistakes, and allowing growth to be your compass.

A pivotal aspect is cultivating multiple streams of income that aren’t contingent on trading time for money, and this is where the seven asset classes come into play: property, business, intellectual property, royalties, investments, pensions, and collaborations. By tapping into your intellectual property, you can cultivate passive income through avenues like books, courses, memberships, and subscriptions.

Crafting a business that operates independently of your constant presence is another effective avenue to amassing wealth, and forming collaborative relationships to innovate and create is a powerful route to success. The key to unlocking this path to success lies in setting measurable goals and devising a well-structured plan to achieve them.

This not only keeps you focused and motivated but also infuses flexibility and adaptability into your journey. Establishing a robust support system is equally crucial, providing the motivation, focus, accountability, and guidance necessary to stay on track. When you’re serious about achieving success, the right people in your circle are indispensable to your quest for financial success and the eventual realization of generational wealth.

4. Recognize that failure can teach success and it is important to take action. 

Recognizing that failure can teach success and taking action to learn from it is an important part of the journey to wealth. One of the key components is understanding how to fail quickly and then learning from that experience. By taking action and learning from mistakes, you can create momentum and move forward. It is also important to understand that you don’t have to be passionate about something to be successful. Instead, it is important to find something you are outstanding at and can deliver consistently.

Another important aspect is recognizing the value of your own knowledge. You likely have valuable intellectual property that you can use to create wealth. Finally, when it comes to creating wealth through business, it is important to understand the power of collaboration and to work together with different people in order to create something you couldn’t do on your own. By recognizing the importance of failure and learning from it, you can become successful and create wealth in your own life. 

It is also important to understand that failure can help you grow and become even more successful. By recognizing that failure can lead to success, you can become more resilient and be willing to take risks. Taking risks can often lead to great rewards, and when you understand that failure can teach success, you can become more confident in taking those risks. Furthermore, it is important to remember that failure is a part of the process and not indicative of your overall success. You can learn from failure and use it to become more successful. 

Finally, it is important to understand that success comes from hard work, dedication, and passion. You need to have an unwavering drive to create wealth and you have to be willing to take risks and put in the effort to make it happen. With the right attitude and determination, you can use failure to teach success and create wealth in your life. By recognizing the importance of failure and learning from it, you can become successful and create wealth in your own life. 

5. Value your intellectual property and turn it into wealth. 

Step 5 is about valuing your intellectual property and turning it into wealth. This can be done in a variety of ways, such as creating a portfolio of property for rental income, creating a business that works without you, creating intellectual property such as books, courses, or memberships, and collaborations with others. To begin this process, it is important to recognize the mountain of value you already have and take stock of what it is you are good at. Ask yourself what you are good at, or ask others what they think you are good at.

Once you have identified your strengths, you can create a plan to turn them into wealth. For example, if you are a hairdresser, you can create a subscription-based membership service, offering haircut tutorials and other services. Or if you are great at grilling, you can create a YouTube channel with videos demonstrating your grilling techniques. Once you have identified your strengths, you can create a plan to market them, build a following, and monetize your intellectual property. 

Once you have identified and monetized your intellectual property, it is important to create an actionable plan for protecting it. Establishing copyright or trademark protection can help ensure that your intellectual property is protected from unauthorized use or other infringement. You should also consider signing contracts with any collaborators or customers that use your intellectual property. This can help ensure that you are compensated for your work, and that you maintain control of your property. Additionally, it is important to stay up to date on the latest laws and regulations regarding intellectual property. By understanding the legal rights associated with your property, you will be better equipped to protect it. 

Finally, it is important to remember that intellectual property can be a great source of wealth. By understanding the value of your property and taking steps to protect it, you can turn your ideas and creativity into tangible wealth. Taking the time to understand your property and create a plan to protect it can be well worth the effort in the long run. 

6. Create wealth through business by understanding the power of multiple streams of recurring income. 

Step 6 is to create wealth through business by understanding the power of multiple streams of recurring income. This can be done through a combination of seven asset classes, which are home, pension, investments, property, business, intellectual property, royalties, and joint ventures. To create wealth through business, it is important to understand what the business is good at and how to turn that into an income stream. One of the best ways to do this is to create intellectual property, such as books, courses, memberships, or subscriptions.

These can be used to generate passive income streams, providing additional financial security and freedom. It is also important to focus on building relationships and collaborations with other businesses in order to leverage each other’s strengths and gain a competitive edge. Finally, it is important to make sure that the business is profitable and can continue to generate an income even when the owner is not there. By understanding these principles and implementing them into the business, it is possible to create wealth through business and secure a financially independent future. 

Another way to create wealth through business is by creating multiple streams of income. This means that the business should have multiple sources of income, such as investments, royalties, and joint ventures. The goal of creating multiple streams of income is to diversify the income stream, as this reduces risk and increases the potential for profits. Additionally, by having multiple streams of income, the business owner can ensure that there is always a steady stream of income in the event that one income stream is disrupted or fails.

Furthermore, having multiple streams of income allows the business owner to take advantage of opportunities that may arise in the future, such as expanding the business or launching new products and services. 

Finally, it is important to understand the power of compounding when creating wealth through business. Compounding is a powerful force that can be used to create wealth quickly. Compounding works by reinvesting a portion of the profits back into the business, which then creates more profits. This process can be repeated and over time it can create significant wealth for the business owner. By understanding the power of compounding and implementing it into the business model, it is possible to create wealth quickly and secure a financially secure future. 

7. Build a financial fortress by diversifying your assets. 

Building a financial fortress by diversifying your assets is an important step in achieving success. To do this, you need to understand the seven asset classes and how to bring each of them into your life. These seven asset classes are: property or real estate that generates rental income, a business that works without you, building intellectual property, royalties, joint ventures and collaborations. 

The key to success with these assets is understanding that each one of them can provide you with a secure source of income. This income can be used to create a financial fortress that protects you from any economic storms that may arise. It is also important to remember that within each asset class there are multiple strategies that you can use to achieve your goals. For example, in real estate there are around 20 different strategies that you can use to create wealth. 

Once you understand the seven asset classes and the strategies within each one, you can start to build a financial fortress to help you achieve success. It is also important to remember that it is possible to create wealth with a small amount of income or capital and a few hours a month. With the right strategies in place, you can be well on your way to financial independence. 

When diversifying your assets, it is important to remember that these investments should be spread out across different asset classes. This means that instead of investing all your money in one asset class, you should diversify and have investments in multiple asset classes. This will give you the best chance of success, as your investments will be more diversified and will be less likely to be affected by economic downturns. 

It is also important to remember that diversifying your assets is only part of the equation. You also need to make sure that you regularly review your investments and make sure that you are still on track with your goals. By regularly reviewing your investments, you can make sure that you are on the right track and are making the best decisions for your financial future. 

Debt and Build

Debt and Build is a financial strategy where individuals strategically take on manageable debt, such as a mortgage or low-interest loans, to invest in assets that appreciate over time, like real estate or a well-planned business.

The idea is to leverage borrowed money to build wealth and generate higher returns than the cost of the debt. This approach can be an effective way to accelerate wealth-building, provided it’s executed wisely, with a keen focus on managing debt and ensuring that investments ultimately outweigh liabilities.

Protect your Wealth

Protecting your wealth is a crucial aspect of financial planning. It involves implementing strategies and safeguards to ensure that your hard-earned assets and investments are secure. This includes measures like having adequate insurance coverage, estate planning, and diversifying your investment portfolio to spread risk. By protecting your wealth, you can mitigate potential financial setbacks, safeguard your family’s future, and maintain the financial security you’ve worked to build.

Max Out Your Retirement Savings

Maxing out your retirement contributions is a key step in securing your financial future. By contributing the maximum allowable amount to retirement accounts such as 401(k)s or IRAs, you can take full advantage of tax benefits and ensure a more comfortable retirement. It demonstrates a commitment to saving for the long term and making the most of available resources, which is vital for building a substantial retirement nest egg.

Conclusion

In conclusion, understanding the definition of success and the seven asset classes is essential to achieving wealth. Taking control of your destiny, doing things you enjoy, and valuing your intellectual property are all key steps to success.

Additionally, understanding the power of multiple streams of recurring income, building relationships, and diversifying your assets can help you build a financial fortress and achieve Financial Freedom. With the right strategies and guidance, anyone can achieve the same result. Take action today and start building your own wealth and success. 

FAQ’s

What is generational wealth?

Generational wealth is a financial legacy passed down through families from one generation to the next. It consists of accumulated assets, investments, and resources that provide financial security, opportunities, and advantages for descendants. Building generational wealth often involves strategic financial planning and smart investments.

How can I start building generational wealth in my 30s?

To begin building generational wealth in your 30s, you should focus on maximizing your income, investing in assets like stocks, real estate, and retirement accounts, and creating a well-structured financial plan. Working with a financial advisor can also provide valuable guidance in this process.

Why is it essential to understand the concept of “money goes where it’s treated best” in wealth management?

Understanding the principle of “money goes where it’s treated best” underscores the importance of optimizing your investments and financial choices to maximize returns and minimize risks. This concept is vital for building generational wealth as it encourages smart asset allocation and investment strategies.

What are some common mistakes to avoid when building generational wealth?

Common mistakes include overspending, neglecting to save and invest, accumulating high-interest debt, and not having a clear financial plan. It’s crucial to avoid get-rich-quick schemes and focus on sustainable, long-term wealth-building strategies.

How can life insurance play a role in generational wealth planning?

Life insurance can be a crucial tool in generational wealth planning. It provides financial security for your heirs, helps pay estate taxes, and can serve as a tax-efficient means to transfer wealth to the next generation. Additionally, permanent life insurance policies can accumulate cash value that can be used for various financial needs or left as a legacy for your heirs.

(Learn more about Kevin Whelan on his website)

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