The difference between those who are successful at building permanent wealth and those who aren't is how they use their resources.

This week I'll share another resource that I see used incorrectly in wealth strategies on a daily basis. Let me start by asking you a question:

How many agreements have you made today? On an average day, you probably make at least a hundred or more agreements.

When people hear the term "agreement," they usually think of a formal written agreement. The reality is, there are many more agreements that most people don't even realize are agreements. These are what I refer to as informal agreements.

The most common issue I see with informal agreements in a wealth strategy is not that they aren't used; in fact, they are used all the time. It's that they are used without recognizing them as agreements.

Here's an example.

You send the following email to your property manager:

"Can you send a copy of all my current lease agreements to my mortgage broker for a refinance I am doing?"

Your property manager replies back with "Yes, no problem."

This is an example of an informal agreement. Your property manager has agreed to do something for you.

Informal Agreements

Informal agreements are everywhere - emails, phone calls and casual conversations, to name a few. We make them with business associates, employees, vendors, staff, friends, family, acquaintances and even people unfamiliar to us. We make them simply by nodding our head during a conversation.

This is what makes the misuse of informal agreements so dangerous in a wealth strategy! Informal agreements are often made in a casual setting, so the terms are usually casual as well and that can lead to miscommunications, errors and inefficiency.

The email example I use above is an example of a poorly used informal agreement.

From the sender's side, there is no mention of when the task is expected to be done or how it should be done - does "send" mean mail, fax or email?

On the responder's side, the response could be more specific about when it will be done or ask for a specific deadline.

Now, in this case, it could end up that the property manager gets it done as you expected. But, if we want to really maximize and leverage our resources, we need to recognize when our communication results in an agreement and set clear expectations every single time. Making this a habit will make the communication with your team members more efficient and effective.

When informal agreements are used properly in a wealth strategy, they are amazing! They are quick and easy, and they can yield results that exceed our expectations.

Did Your Answer Change?

Now that you know to include informal agreements, how many agreements have you made today?

Initially, it may appear as though informal agreements are not as important to your overall wealth. However, since we make so many more informal agreements than formal agreements, it is critical to the get the informal agreements right!

One of the goals in wealth building is protecting your resources by creating a secure, safe and comfortable environment. You can do this with your informal agreements by being attentive to your words and actions and by forming clear expectations.

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Often, with a few changes, struggling wealth strategies can be turned around and become quite successful in a surprisingly short period of time simply by making better use of their resources.