| |

Your No.1 Wealth-building Tool

black claw hammer on brown wooden plank

Your No. 1 wealth-building tool is your income.

Most people do not take good care of their money. While many know what they are spending on big items in their budget, many are not even aware of where their money goes.

It may seem like you have a leak in your bank account. Money seems to evaporate. Many recklessly spend their income without giving any thought to saving and investing.

You need to manage your money well and get into a habit of converting part of your income into assets.

“Whoever gathers money little by little makes it grow.” (Proverbs 13:11)

Today, I want to show you how you can USE YOUR INCOME TO BUILD UP YOUR WEALTH PORTFOLIO.

Before we look at how you can use your income as your No. 1 wealth-building tool, I want to look at a few financial concepts that have the potential to revolutionize the way you manage your money.

Two financial concepts you need to understand to build wealth


Your income statement is a basic overview of your INCOME and your EXPENSES.

What is INCOME?

  • This is money that you EARN, that causes money to FLOW IN to your account.

What are EXPENSES?

  • This is money that you need to pay out to cover your living expenses and debts, that causes money to FLOW OUT of your account.


  • An INCOME STATEMENT is a statement that clearly shows your INCOME and YOUR EXPENSES.
  • If you SPEND MORE THAN YOU EARN, you will have a NEGATIVE CASH FLOW. This will result in debt, stress and will rob you of the ability of every being able to build wealth.
  • If you SPEND LESS THAN YOU EARN, you will have a POSITIVE CASH FLOW. If you INVEST your SURPLUS INCOME, you will be using your INCOME AS A WEALTH-BUILDING TOOL, and you will build up your wealth portfolio .


Your BALANCE SHEET is a statement that clearly gives you a break down summary of your ASSETS and your LIABILITIES.  

What is an ASSET?

  • An asset is an ITEM OF VALUE that can be converted into cash and causes money to FLOW IN (Eg. savings, investments, property, and valuables).
  • Assets are therefore the things YOU OWN.

What is a LIABILITY?

  • A liability is any DEBT that you are legally liable to repay and causes money to FLOW OUT (Eg. loans, bond on your property, credit card or store card or car loan).
  • Liabilities are the debts YOU OWE.

What is your BALANCE SHEET?


  • Your BALANCE SHEET therefore gives you a clear picture of your WEALTH PORTFOLIO.
  • If you use your INCOME as A WEALTH-BUILDING TOOL, you will build your wealth portfolio.
  • To build wealth, you simply need to CONVERT as much of your INCOME into ASSETS.

The flow of money

You earn income. INCOME brings wealth flowing IN.

You have expenses. EXPENSES causes wealth to flow OUT.

If you spend all you earn, you will NOT BUILD UP ASSETS. If you have too much debt, all your income will go towards LIABILITIES, and you will have NO ASSETS.

If you take on too much debt, you will see most of your income flow OUT to LIABILITIES, to cover your DEBTS. This will result in an OUTFLOW of your income that will leave you with a NEGATIVE BALANCE SHEET, which will prevent you from every attaining financial freedom.

However, if you INVEST PART OF YOUR INCOME, you will be using your INCOME AS A WEALTH BUILDING TOOL, and this ensures that part of your income flows IN to ASSETS. You will thereby be converting part of your income into ASSETS. This will ensure that you BUILD WEALTH. Your investments will in turn grow, generating growth and income over time, which will continue to flow back into your assets. This will ensure that you grow your NET WORTH and build up a WEALTH PORTFOLIO.

If you make a concerted effort to SAVE and INVEST part of your INCOME, before you are tempted to spend it, you will see more of your income flow IN to your ASSETS. This will result in greater POSITIVE INFLOWS into your ASSETS. Over time you will BUILD UP A WEALTH PORTFOLIO that will lead to a fruitful financial future.

If you build margin into your budget, and spend less than you earn, and if you start investing your surplus income, you will BUILD WEALTH and set your family and yourself on the JOURNEY TOWARDS FINANCIAL FREEDOM .

“The wise man saves for the future, but the foolish man spends whatever he gets.” (Proverbs 21:20)

Invest before you spend

Warren Buffett says, “Don’t save what is left after spending, spend what is left after saving.”

If you want to build wealth, you must use your NO. 1 WEALTH-BUILDING TOOL, which is YOUR INCOME, and you need to INVEST. By building up your investments first, you can eliminate the problem of not having enough money to invest, at the end of the month.

I heard a quote many years ago from Jim Rohn, that forever changed my approach to wealth building. If you apply this simple strategy, you will always use your income as a powerful wealth building tool.

Jim Rohn said that “the difference between the rich and the poor” boils down to the order in which they spend their money. Jim said, “Poor people SPEND FIRST and save what is left over, while rich people SAVE FIRST and spend what is left over.”

It may seem smart to spend first and to save what is left over, but the problem is that there is often NEVER ANYTHING LEFT OVER to save, and most people therefore never end up saving. However, if you SAVE part of your income FIRST, before you spend your money, you will ALWAYS build wealth.

You need to SAVE before you SPEND. You need to CONVERT YOUR INCOME INTO ASSETS. I need to challenge you to use your income as your NO. 1 WEALTH-BUILDING TOOL.  

“A wise person chooses the right road; a fool takes the wrong one.” (Ecclesiastes 10:2)

In summary…

YOUR WEALTH PLAN consists of two areas…


I want to encourage you to cut wasteful expenditure and spend less than you earn. Rather be wise and invest part of your income before you spend it. You will then be using your income as a wealth-building tool.


You need to shrink your debts and build your assets. If you have less debt, you will have more disposable income. Make it a priority to invest part of your income before you spend it, thereby turning your income into assets and building your wealth portfolio.

Set up your wealth plan

Take a disciplined approach to managing your money.

“Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.” (Proverbs 21:5)

Break the debt cycle. Use your income as a wealth building tool by investing part of your income before you spend. You will then be turning your income into assets. As your wealth portfolio grows, you will move towards financial freedom.

“But remember the LORD your God, for it is he who gives you the ability to produce wealth.” (Deuteronomy 8:18)

God bless you.

Get Our FREE eBooks to Help Achieve God's Purpose for YOU!+ 21 Practical Steps to break the Debt Cycle (BONUS)

Enter your name and email address to get INSTANT access to these life-changing eBooks via email!

Similar Posts


Leave a Reply