Erlend Peterson's title of chapter one is: Rich or Poor, It's Your Choice. Throughout the book Peterson gives the reader just that – a choice whether or not he / she chooses to become rich (financially) or struggle without wealth. He claims that "most of the people around you will continue to make the wrong choices."
Not wanting to be classified as "most of the people" I was eager to delve into "Rich by Choice" to see if, according to Peterson, I was on the correct track. I was also enthusiastic in learning new ways of creating or sustaining wealth. Peterson did not let me down.
One thing Peterson is clear about is that being rich is having $ 2,000,000 or more in liquid assets – cash, mutual funds, annuities, stocks / bonds, and the cash value of a life insurance policy. It does not mean a huge house, a new expensive car, nor does it mean taking long vacations. Basically, what it does mean is the investments can be sold for cash or left to grow to generate income. Peterson also adds that real estate, which has a net profit of 20% or more, can be considered as a liquid asset.
Peterson's "Rich by Choice" is a simple tool that is concise and accurate. If using the seven-step plan presented by Peterson, one can't help but be wealthy. He presents plans for people in the 20-40 year old range with earnings of $ 40,000, $ 70,000, or $ 120,000 per year. His number one step, one that is repeated in most wealth sustaining concepts, is to invest a minimum of 10% of all income. Using charts to prove the simplicity of the concept, Peterson maps out the process using his seven-step plan.
But, this book isn't only for those in the beginning stages of their life-time financial freedom. Peterson also addresses it's never too late to start financial planning – yes, even if you are over 50, and / or near retirement age.
In "Rich by Choice" Peterson encourages and motivates readers to look at personal financial practices. He further prompts the reader to set long-term financial goals and put the seven-step plan into motion. How easy is that? It is very easy – it just takes desire and determination to achieve.