"It is time to shed some light on the subject and illuminate the way wealthy people think about money," says Kevin Mackessy, Keller Williams agent and millionaire real estate investor. "The most powerful model top real estate investors apply in building true wealth is the Money Matrix. It tells the simple story of how the rich get richer and the poor get poorer."

In his best selling book, "The Millionaire Real Estate Investor," Gary Keller reveals the two pyramids of the Money Matrix-one pointing up and the other pointing down-which reflect the contrasting financial priorities of investors and consumers.

Area residents can learn about the Money Matrix by attending a free real estate investing seminar, presented by Mackessy, from 10 a.m. to noon on Saturday, Dec. 16, Jan. 20 or Feb. 17. Seminars are held at Keller Williams Executives Realty, 200 W. Plaza Dr., #200 in Highlands Ranch. To make a reservation, call 720-206-0203.

Mackessy will share investing techniques based on "The Millionaire Real Estate Investor"(MREI) and his own experience in creating more than $1 million in real estate equity in seven years.

The Four Roles of Money

The essential difference between the two pyramids of the Money Matrix is the importance they place on the four roles of money:

· Capital-money invested in anything expected to grow in value.

· Cash Flow-money generated from those investments.

· Cash-money held in reserve for security and future investments.

· Consumption-money spent on anything not expected to grow in value.

Investors build their financial lives on capital, while consumers build theirs on consumption. Investors understand that the priority they place on capital over consumption in the beginning will dictate what they will be able to ultimately accomplish financially.

"It all comes down to financial priorities-what you actually do when you receive money," explains Mackessy. "Investors see money as an opportunity to invest, while consumers see money primarily as an opportunity to spend, or worse, over-spend and spiral into crippling debt. As a result, while investors are generating money from their investments, consumers are at best saving money for security; at worst, they are constantly struggling to get out of debt.

"Later, while investors are setting aside more money for future investments, consumers are trying to wring some return from modest savings," Mackessy continues. "Finally, while investors are free to spend all that's left, consumers are struggling to invest the little that is left.

"When you invest in capital first, an amazing thing happens: Slowly but surely your money starts to work for you," Mackessy explains. "Your money is now making you even more money. And each year as you invest more of your income in capital, the cash flow it generates grows in significance. Suddenly, you find that you are well along the financial wealth-building path."

Millionaire real estate investors strive to see how much unearned income they can generate from their real estate holdings. In the end, it all comes down to the ability to prioritize investing over spending, to value capital over consumption.

Avoid "Shadow Wealth"

Most successful real estate investors make short-term sacrifices for long-term gains while they are building a solid foundation for financial wealth. Consumers have it backward, and that is why they live for shadow wealth, or the appearance of wealth without any substance. It's what the authors of "The Millionaire Next Door" called "big hat-no cattle."

"When you view your financial decisions through the lens of the Money Matrix, you start to understand where money comes from and where it goes," explains Mackessy. "Your financial priorities will make the difference between achieving true financial wealth and falling prey to the allure of living in the world of shadow wealth."

To register for one of the free MREI seminars, visit BuyHoldWealth.com or call 720-206-0203.

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