I had mentioned in my post on Wednesday 22nd June that I would delve more into keys for building wealth. I took a little detour last week, and I make no apologies for this, as a mental health check is as good as a physical health check.
I am so excited right now, because I am literally in reaching distance of fulfilling one of my biggest goals! I can’t tell you what that dream is because it’s private (knowledge considered damaging to the public), but all the same, it’s exciting.
I know what you’re thinking why mention my goal if I can’t tell you what it is?
Well, it’s simple; I want to encourage you to maintain and even increase your focus. You see it’s good to get ingredients, I can always give you ingredients, but is the cake going to be baked just because you have ingredients? No! You need the recipe, step by step instructions that will get you from A to Z.
Now, I have repeatedly said, that the key to being wealthy in this world today, is to own nothing and control everything. I want to introduce to you one of the MAJOR secrets that the rich have. It’s the law of trusts.
I am sure you have heard of trust funds and foundations etc, well, if only you knew the power of trusts. It’s so exciting.
It’s no point me trying to explain how a trust works in my post, you will have to come to a Money Wisdom Workshop for that, as the concepts are very simple but not easy, it’s like a game of chess,simple rules, but a complex game for complex thinkers!
What I do want to share with you is that in this day and age, you have to think outside the box to preserve or even build your financial capacity.
It’s very obvious to me that the effects of inflation are really starting to manifest, just compare your shopping bill now compared to six months ago. So why are trusts so important?
The best way for me to explain is if I tell you a story
Not so long ago I used to get a lot of issues by a bailiff, to make matters worse the issue was purely based on confusion of a relationship (a trust relationship). I would get constantly harassed by this individual and on many occasions he tried to take my car to satisfy his desire to levy my property, on every occasion he had to go home with his tail between his legs (it’s nice to have the last laugh when you know your rights).
Now one morning, about 5.30 am he pulled up in front of my house and proceeded to clamp the carI was driving, a car that I had full beneficial use of but absolutely no legal ownership. I calmly went outside and he tentatively proceeded to wind his window down (you know the way you wind down your car window when a stranger approaches your car, you leave about an inch gap so you can at least hear the other person speak). I politely said to him that the car doesn’t belong to me (it used to) and that he should remove the clamp else he will get into a lot of trouble. I asked him if he had checked the vehicle ownership lately, and he admitted he hadn’t. I went back inside my house, closed the front door and went to my office.
I went back to check the car about 15 minutes later, only to see the tail end of his van, and the car still parked outside my home without a clamp. Now the big question is not why the car was still there, but how?
And the answer all rests in the law of trusts to own nothing but control everything. You should always seek to have beneficial use of a thing than be the legal owner (trustee). Unfortunately it’s the trustee that gets into trouble if he fails to pay or breaches his duty.
And the biggest problem about the law of trust is that neither the trustee nor the beneficiary need know they are in a trust relationship. It’s a big problem, because something is expected of you and you have no idea, and so your life could be a living hell through no fault of your own. And so you understand now, why you do not need a university education to be rich and loaded, you need financial education to be rich and loaded.
A trust consists of three parties. One who creates the trust (the settlor or trustor) one who administrates the trust (the Trustee) and one who benefits from the property of the trust (the beneficiary).
Every relationship or at least the majority of relationships are a trust relationship.
Check out your relationships.