These laws of wealth creation are what they say, laws that have been proven. You will achieve success if you apply them. You must realize that wealth can mean different things to different people. Many people automatically associate wealth with Oprah or Bill Gates. Although these people are extremely wealthy, that doesn’t mean their position is the same for all. What does wealth mean to you? You must decide for yourself. Visit our website and learn more about laws of wealth.
In my years in the financial sector, I have met many different and unique individuals. Just as different as people are, so too will their strategies for wealth creation be. There is no one who wants to become rich. But there’s always a common theme: everyone wants to feel secure, free and happy.
Five Laws for Wealth Creation
1. Make Goals
Set goals to create your own personal map. Begin with your end goal and then work backwards. Consider working with an advisor to get the answers. However, you are the boss. You are ultimately responsible for all your decisions.
How am I doing financially today? Where am I now financially? What are my plans to achieve this?
2. Reduce & Eliminate Debt
Years ago, a CFP colleague and I said that trying to build wealth when you have debt was like walking on cement blocks. The debt is like a large boulder or cement blocks. Imagine wanting to make money for your family and yourself, but having a mountainous debt you need to pay off. Did you actually create anything? To create wealth, you need to get rid of your bad debt.
3. Pay yourself first
This ancient Babylonian myth states that you can keep 10 percent of what you earn. George S. Clason has written what I believe to be an amazing book, entitled “The Richest Man in Babylon”, which I recommend you read. The oldest law of wealth creation is this one. In most societies, it is expected that “others” like telephone companies, gas and electricity companies or banks are paid first. It’s not that I don’t think you should be accountable and fulfill your obligations. However, I do suggest you put your financial future ahead of these costs. You won’t achieve your goal overnight. It is a long-term process. Remember that it isn’t how much income you have, but how much of it you are able to retain, which is most important.
4. Buy. Hold. And prosper.
Financial circles recommend investing a part of one’s income into something like real estate or precious metals. Since I don’t like paper derivatives I won’t comment on this context. In my opinion, solid long-term assets will protect you money and your future purchasing power. If you’re not an experienced investor, that is okay. First you have to establish positive habits so that you can make the right decisions. You can then begin to create your own long-term wealth protection process once these laws have become part of you.
5. Keep your commitment and remain diligent.
You’ll be constantly challenged along the way by life, circumstances and “stuff”. You may find it difficult at times to envision a positive outcome. Be persistent and diligent in your strategy. If you need to adjust your strategy, that’s fine. Just keep on moving in the right direction.