THE 5 BASIC RULES TO BEGIN YOUR PATH TO WEALTH CREATION
I realize most people desire to be rich, but few really become rich. Why? Too many people are looking for the get rich quick system of wealth creation. Now, there may be some who receive their wealth seemingly overnight and through inheritance, but for the majority it doesn’t occur that way. They increase their financial well-being by faithfully following the RULES. Although I have several Rules of Wealth Creation, I want to share just 5 basic ones to help you get started.
KNOW THE TRUTH
Before you can reach a destination, you must know where you’re starting from. This means knowing your true location, or in this case, your true financial position. If you don’t know where you are or what your situation is, you can’t be effective in your attempts to create a flow of wealth. Just as a carpenter lays out his tools before starting a project, its critical for you to do the same. This means collecting information on how much you own, how much you earn, how much you spend and how much you owe.
CREATE A PLAN
This is referred to as the road map for reaching your destination. It will involve taking stock of the information you have collected, your career and any other areas of your life that could be affecting your ability to create a flow of wealth. Regarding your career, a possible change could be needed in this area. Your job may be something you love, but what if it isn’t generating enough money to live on, let alone enough to build wealth? You will need to use the principle of investigation in areas such as business ideas, investing opportunities and strategies, capital generation and more.
GET IN CONTROL
Simply stated this means you must spend less than you earn and begin a process of eliminating all unnecessary debt! Develop your understanding of good debt versus bad debt. We can all be seduced into racking up frivolous debt, and if you want to eliminate the leaks in your income flow you must do something about it. How do you do this? Keep track of everything you spend. If you’re going to be a wealth creator and wealth distributor you will first need to know where your money is going.
LONG TERM THINKING AND HIDDEN OPPORTUNITIES
This is critical. Think long-term, both in planning and expectations. If you expect to be catapulted into wealth you should play the lottery and hope for the best. Time and again it has been proven that successful wealth builders use a patient, well thought out approach or strategy. What does long-term thinking mean? To look forward and see what is happening before it happens. Stalk future opportunities as if you were on a big game hunt. Read articles and study as much information as you can about as many income producing ideas as possible. Does it sound like a lot of work? It is. But that’s how you create a powerful, long-term flow of wealth. A good example is the housing market. Although no one wants to experience a downturn in the home market, it does occur from time to time. And did you know that a tremendous amount of wealth transfers during those times?
CREATE NEW STREAMS
I am a firm believer in not placing all your eggs in one basket. I encourage you not to do this either. I often use the analogy of successful football teams. The really great “teams” have several weapons with which to score. They may have two really great outside receivers and not just one. Or they may have a great running back along with a great receiver. A team with multiple weapons has a better chance of scoring a touchdown than a team with only one star. Here are a couple of ways of doing this same thing in wealth creation.
Turn surplus cash into working assets that generate income for you even when you aren’t around. A rental property is a good example.
Find ways of using your skills and expertise in more than one setting so you aren’t just exchanging your labor for a paycheck in a day job. I didn’t say to quit your day job just yet! I know several people with day jobs that do freelance work to generate a new stream of income. Look for the endless options.