As one of the best wealth management firms in Las Vegas, Alpha Omega Wealth is dedicated to providing you the tools you need to become economically prosperous. We’ve been going over the Twelve Principles of Prosperity to help you get a taste of our method. So far, we’ve gone over:
- Thinking with a Prosperity Mindset
- Seeing the Big Picture
- Measuring Opportunity Costs
- Focusing on Cash Flow, and
- Taking Back Control of Your Money.
In this week’s blog, we will talk about the movement of your money, and why it’s important.
What is Velocity of Money?
When it comes to private wealth, your velocity of money helps calculate your economic activity. It basically tells you how much your money moves from one transaction to another. Simply, money velocity is the rate at which money changes hands, or how much money is used in a given amount of time. You can use the velocity of money to measure the rate that money is in circulation for buying goods and services, and returning back to your pocket. When you learn to be your own banker, calculating your velocity of money is important to you becoming more prosperous. A wealth advisor can assist you with that.
Why the Movement of Money is Important
Infinite banking is all about becoming your own banker. And in turn, we like to take inspiration from the things banks already do to earn their money. The banks are consistently focusing on their velocity of money. Banks lend out money to borrowers on a daily basis, and that money is paid back to them with interest, so the bank’s money is always moving, and thus, increasing.
The sixth principle of prosperity states the importance of the velocity of money. The velocity of money is the movement of dollars through assets. Your money’s movement accelerates prosperity while accumulation slows it down. Your wealth management firms will advise you to avoid stagnation in your assets where dollars accumulate. Cash savings means your money is just sitting, and not being put to use. Utilizing the infinite banking concept gives you options for putting your money in many different assets like a life insurance policy, and buying goods and services that can help you accumulate more wealth. Your wealth advisor wants your money to move, so we’ll coach you on dividing your private wealth into many other assets.
One of the Best Wealth Management Firms is Here to Help!
If you’re curious about what it takes to become your own banker, help is closer than you think. Alpha Omega Wealth is passionate about private wealth and getting you back in control of your money. Contact us to learn about our wealth management services and get started managing wealth today!
