All riches have their origin in mind. Wealth is in ideas – not money.
In order to build wealth there are 2 things you must do to accelerate wealth creation.
The first thing you must do in order to build wealth is change the way you think. Then change your ideas about money.
Unfortunately the majority of adults in America do not share this view about building wealth.
Here are three questions that will test your conceptions why you want to build wealth
Do you believe the more money you have, the less worries you’ll have?
Do you believe the more money you have the happier you’ll be?
Do you believe millionaires drive flashy cars?
If you disagree with all of the above questions then you must be a wealth expert…and you don’t need to be reading this article…clap for yourself
But if you are in agreement to these questions then you are part of the majority who carry misconceptions about how to build wealth
Wealth expert Tracy Johnson says that there are 10 common misconceptions about money.
Some of the misconceptions people have about money include:
believing money is the root of all evil, millionaire drive fancy cars, debt is always bad and earning a big income will keep them out of debt
The truth is most of these misconception are just myths. They are far from the truth about building wealth.
What you need to build wealth is change your thinking and ideas about wealth
Let’s talk about the way you make the changes you need to build wealth.
Change your thinking about how you build wealth
You see wealth is a product of creating value or acquiring assets that generate income.
In other words if you are serious about building wealth you must learn how to create value.
Why? Because the only way you earn income is by providing your services in exchange for money.
Before you can earn money you must have something of value that your market is willing to pay for in exchange for the service or product you offer.
For example, a doctor earns money by providing healthcare to a patient. The same thing applies for a shopkeeper who sells groceries to his customers in exchange for money.
The more people you can serve, the higher your income.
In order to build wealth… you must figure out how you can provide value for a large number of customers in your market.
What separates the wealthy from the average person is the way they earn income.
The wealthy build wealth by creating or buying a business that can serve as many customers as possible.
This means that wealthy individuals build a system that can leverage time and value to serve many customers.
For example the McDonald’s restaurant chain serves families hamburgers, and French fries on a massive scale. As a result the owners of McDonald’s restaurants creates value and wealth creation for its shareholders
When you look at how McDonald’s Inc creates wealth you’ll see a common thread:
That It figured out a way to serve as many customers… by using a system that allows them to serve food for 24 hours a day.
That is what I call leverage
What separates a McDonald’s restaurant from your local restaurant owner is leverage.
The owner of your local restaurant can only be in one location at a time.
On the other hand the McDonald’s restaurants chain has a system in place… that it can use to open its restaurants simultaneously… in thousands of cities-serving exactly the same menu.
You can see that both restaurants are doing the same thing.
The difference is that because one person (McDonald’s) thinks differently from the local restaurant owner… they are producing different results
The next thing you must do after you change your ideas about money and wealth is that you need to….
Change your ideas about wealth
When you look at the Forbes 400 list of richest people globally you’ll see they all made their fortune from starting a business, investing and real estate
You will never find an employee-that is someone who works at a job-make the Forbes list. The only exceptions of wealthy employees are CEOs of multinational companies.
But hold on! What you don’t know is that these CEOs are actually intrapreneurs.
Intrapreneurs are employees who have financially valued skills that they have used to improve a companies bottom line profit.
As a result they own equity in these companies. A CEO becomes wealthy from receiving share compensation not a salary.
Here a few CEO who are wealthy from earning share compensation;
Ralph Lauren of Ralph Lauren Inc. $66.7 million
Richard Kinder of Kinder Morgan $60.0 million salary $1
David Cote Honeywell Inc. $55.8 million
George Paz Express scripts $55.6 million
The secret to changing you ideas about wealth is to look at your world from the lens of opportunity.
In my last article on how to build wealth from zero
I talked about the 5 forms and five places you can find opportunity to build wealth
Briefly the 5 places you can find opportunity are
- Complaints, threats
- Demographics/ niches
- Hobbies and interest
- Personal crises/experiences
Here are some examples of entrepreneurial ventures that started on the back of opportunity
Complaints: The holiday Inn hotel group started because a family could not find family friendly rooms while on vacation
Demographics/niches: The Villages one of the largest retirement homes in Florida was started to cater for the needs of seniors and elderly
Trends: The wellness industry took off on the back of people wanting to stay healthier
Hobbies and interest: Chipotle a popular American healthy gourmet chain was started by its founder because he wanted interested in serving organic and locally produced ingredients to its customers
Personal crises: In 1951 Bettie Nesmith Graham invented the first liquid paper Tipp-ex in her kitchen because she was frustrated with making typographical errors on her typewriter
The changes you need to make to build wealth are simple. And they can have a profound impact on your future wealth
Why not start today to take these 2 steps to build wealth for your family and future generations?
It all starts with doing two things: Change your thinking and Change your ideas about wealth