Having grown up in a country where there is still a significant amount of poverty, dealt with lack in my life and created income streams for myself, the subject of money is one I find truly fascinating. What’s also interesting is how it’s become quite trendy to be an entrepreneur, make money and converse in “business speak”. The internet and access to credit mean it is one of the easiest times in history to create products, make them available to many people, generate income and become a millionaire.
So, why are so many people broke?
The reason is that there is often a desire to be wealthy, but it’s not very clear how to achieve it. With this post, I’m going to try to quickly demystify this whole wealth business and how to start a journey in that direction. The fact is, ANYBODY can become wealthy.
Now, to be clear, by “wealth”, I am referring to an abundance of financial resources – and one gets to this place by keeping a singular concept in mind: You achieve wealth by generating income when you are not present.
What makes this possible are two components:
1. The mindset
2. The process.
Robert Kiyosaki of the “Rich Dad Poor Dad” series provides an excellent summary of the mindset needed to be wealthy in the three words: “BE”, “DO” and “Have”. To be wealthy you have to BE a certain way and think a certain way. You have to believe it is possible, believe you can find a way around the problems that try to block you from your goals, be willing to continue learning (which is so important!) and work hard on your craft. The belief that you have what it takes to overcome obstacles to wealth makes it easy to DO what's necessary to achieve it. Wealth becomes a natural by-product. Like someone said, if you pop a balloon with a pin, there’s nothing else you need to do to let the air out. It just happens. If you think and act a certain way, wealth just happens.
Again, there are three basic parts to the process of creating wealth. Very simply, these are:
· Generate Income
· Continue acquiring Assets
· Reduce Cost
The people who have created wealth for themselves, and not those who won the lottery, married into wealth or had it handed down from their parents, align with the process.
“Generate Income” is clear; you get a job or start a business so you can start buying assets. “Continue acquiring assets” means buying things that put money into your pocket. Buying a property gives you rental income, buying shares or financial instruments give you returns, buying a business gives you more income…and so on. So while others may want to buy cars or fancy clothes, people who get wealthy are thinking about the next asset they can purchase so they can make money in their sleep. The last bit is reducing cost which is something the wealthy really understand because it does not matter how much money you make if you have to give it all away.
So there you have it. This is not meant to be a detailed course on wealth but something to help you think about the topic and how you have been going about it. I’d like to hear your thoughts and questions in the comment section.
Article by J.C. Nova. Enjoyed the post? Like and Share.