Wealth is the product of man’s capacity to think-Ayn Rand
To gain financial freedom you must build wealth.
The problem is many people desire financial independence… but don’t know how to build wealth.
The major obstacle to building wealth is lack of knowledge and skills.
A national survey by the FIRNA foundation in 2009 into the financial literacy of Americans showed…That most Americans scored poorly in basic financial literacy quiz.
In fact young adults scored worst in basic literacy skill according to the survey
As a result many people prefer the security of their 9-5 job instead of taking action on their dream of becoming financial independence
You can learn to build wealth when you know the secrets other successful individuals have used to move from rags-to-riches
Here are 7 must-know secrets of building wealth
Secret #1. Imagination is better than knowledge
Albert Einstein once said, ” Imagination is better than knowledge “. In other words you don’t need to know everything about business or investing.
What you need is a desire, determination and a big dream to start creating wealth.
Napoleon Hill best selling author of think and grow rich says whatever the mind can conceive and believe it can have
Hill goes on to say if you desire riches and you are willing to make a magnificent obsession of your dreams…you’ll eventually build wealth
Secret #2. When your why is strong enough then what you need to do becomes easy
Kemmons Wilson founder of the Holiday Inn hotel chain knows much about the importance of having a purpose in life.
Kemmons lost his father when he was nine months old. He rose from rags-to-riches by making his fortune-building the largest hotel chain-in the world : The Holiday Inn hotels chain
When he was asked to identify the secret to amassing wealth, Wilson attributed his success in building wealth to determination
Yes. You need determination to become wealthy…
In her book, Unstoppable: 45 powerful stories of preservation and triumph from people just like you , Cynthia Kersey shares the story of the turning points in Kemmon Wilson’s business life.
The first one was when Wilson was age seventeen. He was forced to drop out of school to support his mother who lost her job in the Great depression.
In Kemmon Wilson’s words “ at that moment, it became my mission in life to succeed for my mother’s sake, and I vowed never to be poor again”
The second turning point, Kemmons had occurred on a vacation with his family in 1951.
He was frustrated at the second rate accommodation for families. And by how hotels charged families that had children during vacation trips
He felt the average American family was not well served by the hotel industry and he was determined to find an alternative.
He saw an opportunity to serve the American family better….and so he founded the Holiday Inn motel chain and the rest they say is history
The moral of Kemmon Wilson’s story is that… if you can find a mission in life worth working for and believe in yourself…nothing can stop you from success in building wealth
Secret #3 You need to ready, fire aim
The greatest obstacle that holds many people back from building wealth is thinking-they need to have perfect conditions-before taking action
The truth is there you cannot know everything about building wealth before you start.
You don’t need to have complete knowledge of business, investing, and real estate before you start building wealth
The truth is you cannot know everything about wealth. It is only when you take action that you’ll gain the experience to become a smart investor
The fastest way you can achieve success in accumulating wealth is do what successful wealth builders do…
That is ready, fire aim
What this means is… that you should spend some time planning how you’ll achieve your goals.
Then you start taking steps towards building wealth without delay.
And even when you make mistakes learn from them and keep moving
That is the ready, fire aim approach, which is different from what most people do when they think about building wealth.
The average adult fantasizes about getting rich…But do nothing about taking action on making his dreams come true
Secret #4 You need leverage to build wealth
There are 3 element that affects wealth accumulation:
- The amount of money you have for investing
- The span of time you have to invest
- And returns on investment (ROI) on your money
The higher the rate of investment on your money the faster you’ll become wealthy.
The higher the amount of money with even a decent ROI the faster you’ll accumulate wealth
Another factor that is important for building wealth if you have time on your side is …compound interest
When you invest money over a long period, the miracle of compound interest helps to substantially increase the original amount invested
To build wealth using the power of compound interest you need time.
The truth most people don’t have the discipline to delay gratification and save money
The alternative to building wealth without waiting for the compound interest is to use leverage.
How do you use leverage to build wealth? The answer is simple.
You can leverage the knowledge and experience of working in your present job or industry to start a business.
You can also develop financially valued skills that will allow you to supersize your income. Which means you can earn more money than you spend
When you earn more than you spend, you can set aside more money for investing. As a result you’ll be able accumulate wealth faster
Secret #5. Remember the 4 pillars of wealth
There a 4 proven wealth building paths you can use to build wealth.
The 4 proven paths to wealth are
- Real estate investing
- Starting and owning a business
- The internet and technologies
- Investing in the Stock market
When you look at the Forbes List of the richest individuals…
you’ll see that virtually all of them made their fortunes from…
a combination of investing or starting a business in one of the proven wealth builders
That is why I recommend you look at choosing one of these proven paths to wealth so you can get rich.
Secret #6. Get rich slowly. Avoid get rich quick schemes
The greatest mistake you can ever make is thinking that you can get rich quickly.
This is far from the truth…
Why? Because the average age of most millionaires in America is 57 years
According to Dr Thomas Stanley who is an expert in studying millionaire and the affluent most millionaires are self employed.
And have worked long hard years in their business before they became wealthy
I suspect the reason why many fail to build wealth is that they are not willing to do the hard work you need to grow a business.
The result is that many people become opportunity seekers.
Opportunity seeker are always looking for the next “hot business opportunity”. That leads to opportunity seeking behaviour like looking for “magic formulas” and “silver bullets”
The truth is that you in other to build wealth you need to be strategic, and focus on a niche.
Next you need to have the self discipline to work on your plans until it you achieve breakthrough
Secret #7. Never give up
It takes time to succeed at accumulating wealth. It takes grit and guts.
The difference between success and failure is persistent.
There is no fixed formula for getting wealthy. But there are steps you can take on the right path.
The road to becoming financially independent may be tough. But you are not alone…
According to a study by Dr Thomas Stanley cited by the random facts website. The average millionaire goes bankrupt 3.5 times before becoming wealthy.
However when you have determination and when you believe in yourself, you will succeed
The next time you are struggling with your plan to build wealth …check if you are using any of these secrets …
Let them inspire you to keep on working on achieving your goals.