Dreaming Of Wealth In Hollywood: Lessons From Xcela Wealth

Most people think that the key to having more money in the bank is to make more money. In Hollywood, California, where the cost of living is almost double that of other US cities, this results in a lifestyle in which people work as hard as they can in persuit of an ideal career. Pat Roberts, Co-Founder of Hollywood-based Ultramedia Innovation, points out the popular saying "be nice to the PA because he'll be directing your next film". This hopeful saying highlights the extreme desire for upward career mobility in Hollywood culture. But the owners of Xcela Wealth think that there is more to the story. It's not about how much money you make -- it's about how you manage it.

The paradigm shift which this creates can take some time to wrap your mind around, especially if you (like many of us) have been raised in an American Dream culture. The preveailing culturual story is that if you work hard enough, one day you will land the job that will pay you the mega-bucks, and then you will be rich! The story ends with Lambrogini-filled garages and a mansion with an olympic sized pool in the back yard.

But what if selling your script, or making it on the big screen wasn't the key to wealth? As Thomas J. Stanley, author of "The Millionaire Next Door" puts it, “One of the reasons that millionaires are economically successful is that they think differently.” So, the big question becomes: What is different about their thinking? Harvey delivers a second clue when he states that "wealth is not the same as income".

Examining the principles behind Xcela Wealth management give us great insight into what wise money management entails. The principles highlight the fact that no matter how much you are making, you use that money to become financially free and eventually financially abundant.

The key isn't working your way to the top of the career ladder. Instead, it is using the money that you earn yearly in wise ways. The average per capital income in Hollywood, California is $57,279. One of the major differences between managing your money poorly and wise wealth management is how much of your income you put towards investments. A second major difference is how much you are putting towards paying down personal debt. Let's examine each in turn.

People who struggle financially often put investments off, and think of investing as a luxury. If you've ever thought, "I'll work hard now, and then once I've made it I might start to think about investing my money," than you have fallen into this cultural trap. Remember, the wealthy think differently.

To manage your money wisely, you need to start thinking about investing now. While many people only invest about 5% of their income, the people who are accumulating wealth invest more like 25%. This means that for the average Hollywood income, instead of putting only $2,800 aside per year, perhaps into a company-run 401K, a wise investor would be setting aside $14,320 per year.

"How is it possible?" you might ask. People who struggle to manage their money often feel stretched so thin that it seems impossible to increase the amount they are investing.

Money managers can help you change your budgeting and strategies so that more money can be poured into investments each and every month. The money can come from cutting back on other expenses, paying down debts, and shifting your thinking about your standard of living. Though our culture might depict the wealthy as lavish spenders, research shows that the opposite is often true. America's wealthy are actually very frugal, and often live below their means. 60% of millionaires drive cars that are below their status level, yet are reliable.

A wise money management strategy is to make investing a priority. A second strategy is to pay down your debt, so that you are spending less per month on personal debt. People who work with financial strategies often point to debt as one of the drains that can keep people in the financial battle-field.

To make headway towards financial freedom, you need to strategically pay down your debt so that you are not paying off high interest rates. This includes debt that comes from credit cards, houses, and cars.

Were you under the impression that wealth would come through a bigger paycheck, when you finally reached your dream job? Change your mindset about money management. Don't put off making wise choices until a future date. Start handling the money you already have in a different way, and you can watch your wealth grow -- regardless of your income.