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To build wealth, you must do two things to accelerate wealth building. 

The first thing you must do to build wealth is to change the way you think. Then change your ideas about money.

Unfortunately, most adults in America do not share this view about building wealth.

Here are three questions that will test your knowledge about wealth and building generational wealth.

 

Does earning more money give you fewer worries?

Does money make you happy?

Do the majority of millionaires drive flashy cars?

 

If you disagree with the above questions, you must be a wealth expert…and don’t need to read this article…clap for yourself.

 Beware of the common misconceptions about  building wealth

But if you agree to these questions, you are part of the majority who carry misconceptions about building wealth.

Wealth expert Tracy Johnson says that there are 10 common misconceptions about money.

Some of the misconceptions people have about money include the following:

Believing money is the root of all evil, millionaires drive fancy cars, debt is always wrong, and earning a significant income will keep them out of debt

The truth is most of these misconceptions are just myths. They are far from the truth about building wealth.

To build wealth, do this or else.

 

Let’s talk about how you make the necessary changes to build wealth.

 

Wealth is a product of creating value by 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 build wealth is to provide services or create products in exchange for money. In other words, Before earning 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 applies to a shopkeeper who sells groceries to his customers in exchange for cash.

 

The key is to create more value.

To build wealth… you must figure out how to provide value for many customers in your market.

What separates the wealthy from the average person is how they earn income.

Most wealthy individuals build wealth by owning a business that can serve as many customers as possible. Wealthy individuals make a system that can leverage time and value to serve many customers.

For example, the McDonald’s restaurant chain generates profits for its shareholders by selling hamburgers and French fries to the public on a massive scale. As a result, McDonald’s create value and builds wealth for its shareholders.

 Leverage is essential to build wealth.

The secret to McDonald’s Inc’s success and profits is that :

The company figured out a way to serve as many customers as possible by using a system that allows them to do food 24 hours daily.

That is what I call leverage.

Leverage is what separates the owner of a McDonald’s restaurant from your local restaurant owner.

The owner of your local restaurant can only be in one location for a limited number of hours.

Backed by a system, a McDonald’s franchise restaurant chain owner can operate for longer hours and serve many more customers than a local restaurant owner. 

 

You can see that both restaurants do the same thing. But one owner (the McDonald’s franchise owner) used leverage to serve the customer…As a result, they have different outcomes.

The next thing you must do after you change your ideas about money and wealth is that you need to….

 

Change your ideas about building generational wealth.

 

Looking at the Forbes 400 list of wealthiest people globally, you’ll see they all made their fortune from starting a business, investing, and real estate.

 

You will hardly find an employee making the Forbes Richest list. The only exceptions of individuals who become wealthy employees are the CEOs of multinational companies.

But hold on! What you don’t know is that these CEOs are intrapreneurs.

Intrapreneurs are employees who have financially valued skills that they have used to improve a company’s bottom line profit.

As a result, they own equity in these companies. A CEO becomes wealthy from receiving share compensation, not a salary.

 

Here are a few CEOs 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

Source: Forbes.com

 

 

The secret to changing your 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 five forms and five places you can find opportunities to build wealth

Briefly, the five places you can find opportunities are

• Complaints, threats
• Demographics/ niches
• Hobbies and interest
• Trends
• 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 to the needs of seniors and the elderly.

Trends: The wellness industry took off on the back of people wanting to stay healthier

Hobbies and interests: Chipotle, a famous 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 two steps to build wealth for your family and future generations?

It all starts with doing two things: Changing your thinking and ideas about wealth.