Money is neither good nor evil, it is simply, money. You can make heaven or hell out of it through any change in your perceptions
There are six steps to build wealth, and I guarantee you that if you do these six things, your wealth potential is going to go up.
1. Have the dedication to build a business and serve people
People must have a work ethic and serve people.
If you are not serving people then you will have no source of income.
There are two ways to build wealth:
- A non-zero-sum game where you go out and come up with a product, a service or idea and you get paid for it. That’s called a transaction that builds wealth.
- The other option is buying stocks and shares, and futures which is a zero-sum game.
However, the second tactic is akin to gambling and you’re not adding to the economy. Instead, it’s where you live off deals in which other people lose money. This would not work if everyone did that.
We need a good percentage of the people producing for other people for the economy to work.
A good economy works through people having a work ethic and helping people.
It’s not just enough to create a businesses because to create wealth the business also needs to be efficient and make a profit. In business, if you don’t make a profit, there is no wealth. It has to be managed efficiently.
You have to save a portion of those profits rather than spending it on consumables so that the money works for you instead. If you keep buying things that go down in value you will never get ahead.
2. Value your saving in order to build wealth
If you never save then you’ll have to work your whole life for money.
If you begin to save, your money will begin to work for you.
People who work for other people, who never save, pay the most taxes and stay broke. People who begin to save, get to a middle class. People who save and then know how to invest and build a fortune, use other people’s money to make the most money and pay the least taxes.
3. Build Wealth by managing your money wisely
The key is to have a value on money and once you start saving it, it will start growing.
“I believe that if you manage your money correctly you will get more money to manage.”
Every quarter, stop and write down everything that you are doing. Look at how much time you spend and how much your time makes per hour or minute.
See if you can’t shed 10, 20, 30, 40 or 50% of that and hire somebody to release the lower priority things that are burdening you, lowering your self-image and get on with doing what is most inspiring to you that you are more masterful at, that produces more income in less time.
Every time you do that, you increase your savings. If you increase your savings every quarter, when you do that exercise, no less than 1%, preferably 10%, the amount you save, will double every two years, minimum.
When you create a bigger demand on yourself because of the savings, you attract a bigger supply to yourself.
4. Master the art of investing to build your wealth
Retaining the money you have saved is key.
A quote used by famous business magnate Warren Buffet, who advises:
“Rule number one with money is don’t lose it. Rule number two: don’t forget rule number one.”
An investor is somebody who does enough of the math to calculate that it is going to be in their favour. They are not speculating, they are not gambling, they are making sure that numbers work on their behalf. They are patient, waiting for the right investment, not impulsive and not emotional.
5. Choose an amount of wealth scaled to your vision and dream
If you have a clearly defined goal, then you are more likely to get there.
If somebody says I want to live a lifestyle that is worth a million a year and the average return is 6%, that means that they need 16.6 million saved, getting 6% plus five or 6% inflation on top of that to sustain that lifestyle, otherwise it is a fantasy.
It is not an arbitrary number – it is a very specific number.
People who know where they are, who know exactly what their assets and liabilities are and have a clear goal and a strategy on what it would take to get there, are more likely to get there than people who have a fantasy about what it is going to be, who don’t know where they stand and don’t have a strategy or a motive for fulfilling that strategy.
6. Have a bigger cause in order to build wealth
You will accumulate more wealth if you have a bigger cause.
Ask yourself what is the benefit, value and service to me of creating a legacy of wealth, acquiring such a fortune that I live a legacy with it, a contribution back to the world?
Are these achievements realistic?
Any human being that truly has the ambition to build wealth can do it. It doesn’t matter what it is. It’s all on the internet. There is no reason why you can’t learn it. But if you don’t have a value on it you won’t take the time to learn it.
Money automatically goes to the person who values it the most.
People who don’t value money keep spending it and make it disappear. So that’s why the rich get richer and the poor get poorer.
If you would love help on how to build confidence, contact the Demartini Institute: Solutions@DrDemartini.com
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