In this chapter, we’ll be covering 10 specific secrets which marked the major differences between the wealthy and the poor. For each one of these, check your lifestyle, your financial habits and your current strategy for earning income and identify what habits you need to change right away:
*Warning: some of what you’re about to read may be difficult to accept, but if you receive it with an open mind, it’ll change your life forever.
Wealth Principle #1: Stop Working for Money and Get Money Working for You
Working for money is a certain way to keep yourself working for money, and working for it and working for it…only to watch it go in one hand and out the other. Wealthy people know how to leverage money so that it multiplies. They don’t work for money as much as they know how to get money working for them.
How do they do this? Through the way that they spend their money. They spend it on things which add value to their lives instead of things which will help other people build their dreams. Wealthy people don’t ask: “How much will this cost me?” as much as they ask “How much value will this add to my life?”
Think about it, as long as you’re willing to work for money, there will always be someone who’s willing to invest in paying you so that you can help them build their dreams. This is what your employer is doing. They’re getting more value out of you than they’re investing because they’re paying you less than what you’re helping them to earn.
If they weren’t making money off of your efforts in this way, they wouldn’t keep you on staff long. So they are leveraging their money (the money that they’re paying you) to build wealth for themselves.
Wealth Principle #2: Stop Loving to Buy, Start Loving to Sell and Promote
This could very well be the key difference between wealthy people and people who are broke: wealthy people love to sell, broke people love to buy. Just think about the attitude which most people have towards salespeople…not too good right? Yet, ask the same average person why they want to get rich and they’ll rattle off a list of things that they would buy.
This is exactly the reason WHY most people never get wealthy, they love to buy but they hate to sell…some of them even hate people who sell and market. Think about this: no money is made until something is sold, and that means someone has to buy. So in life, you’re either the seller or the buyer.
Considering this, is it any wonder why the small majority of the population controls almost all of the wealth? Again, no money is made until something is sold. This is the cornerstone of every organization in the world…even churches and non-for-profits have to earn money through promotion of some kind in order to stay in operation.
So if you want to attract wealth, it’s either love selling and promoting more than you love buying, or continue to help others get wealthy instead of helping yourself…
Wealth Principle #3: Start Investing in Assets Instead of Saving
Saving money is no longer the smart thing to do when it comes to building wealth. Taxes and inflation have made it impossible to build wealth by merely putting money away. These days, saving money is losing money. So once you have a few thousand dollars saved to help with potential emergencies, the next step is to invest.
But isn’t investing risky? Yes. You could lose money if you aren’t smart with the investments that you make. The only guard against this is to commit yourself to a wise investment plan starting right now.
On the other hand…
If you save money, you are certain to lose value because of taxes and inflation. Again, the only guard against this is to commit yourself to a wise investment plan starting right now.
As a good rule of thumb, invest in assets which will help you to increase your positive cash flow so that you can build your net worth. The best way to do this is by running your own business.
Think about it, most of the time when you invest in your own business, you can write it off on your taxes, but you’re still paying yourself because you’re building your own money making asset.
Wealth Principle #4: Decide How Much You Want and Why
If you don’t determine how much wealth you want and have a specific plan for how to spend it, you’ll either never make it or end up spending it frivolously when it does come. This is so important that you need to get started right now by writing down two things:
1) How much money you want to make
2) Why you want the money
The second of these is the most important because people always work harder when they know exactly why they’re doing it. Too many people say: “I want to be rich” or “I’m going to win the lottery.”
But without having a specific number in mind, your creative imagination and your willpower have nothing to grasp onto. They have no standard by which to determine a specific plan of action, so no action can be taken…and of course no action equals no results.
Again, wealth can only happen on purpose, and having a specific amount to aim for and a specific plan for the money when you make it will enable you to make it happen on purpose instead of leaving things to chance.
Wealth Principle #5: Start Learning, and Never Stop
Knowledge may not be power, but it certainly is potential power, and power is required to earn money. If you’re not wealthy right now, there can only be two reasons: you either lack the specific knowledge of how to acquire wealth, or you have the knowledge and you just haven’t used it.
Either way, learning is something which you must start right now, and there are two crucial dimensions to learning:
1) Acquiring knowledge
2) Using knowledge by taking action, learning from both your successes and your failures and taking more action.
Everyone knows that there are some things you can “know” in your head without “knowing” by experiencing. This is why learning will always require action in order to be complete. For example, you can read a book about war, but you never know what war is like until you live through one.
You can know about parenting by studying, reading and observing. But until you actually raise a child, you don’t really know parenting. You can even read about a person, but you don’t know them until you meet them in the flesh.
This has always been true, but with the growing abundance of knowledge available because of the information age, knowledge through action is becoming more important.
Eric Hoffer said:
“In times of drastic change, the learners will survive while the learned find themselves well equipped to deal with a world that no longer exists.”
In other words, if you want to survive and thrive, enjoy financial security and even wealth, you must devote yourself to constant learning and action.
Wealth Principle #6: Get out of Debt and Stop Borrowing…For Good
According to Forbes magazine, nearly 75% of the 400 wealthiest people in North America claim that getting and staying out of debt is one of the first keys to building wealth. Think about it: the purpose of debt is to earn money. Debt is a product, and those who are buying it (the borrowers) are always going to be helping those selling it (the lenders) to make more money.
It has to work this way, or else no one would be selling debt. Again, you will either be the seller who is making money or the buyer who is helping the seller make money.
Wealth Principle #7: All Relationships are Business Relationships
One of the leading causes of financial troubles in North America is divorce. Couples who marry and split up lose handfuls of money (thousands to hundreds of thousands) over divorce disputes. This could all be avoided by making decisions in your relationships which take financial matters into account from the beginning.
When looking for a mate (or sometimes even when choosing friends), make financial responsibility one of the standards by which you determine who you’ll associate with. This alone could be the difference between being broke and being financially secure.
Wealth Principle #8: Start Taking Care of Your Body
Considering the rising cost of health care and the fact that the leading cause of personal bankruptcy is medical bills, it only makes sense to start taking care of your body. Not to mention that a low energy level due to poor health can seriously impact your earning potential. So getting your health in order is just as much a financial decision as it is a healthy decision.
This is simple, yet so many people neglect it. Your body is mortal, and neglecting to take care of it through proper diet, exercise, rest and stress management will take its toll financially.
Wealth Principle #9: Know Where Your Money is Going
Broke people don’t know where their money is going until it’s already gone. If you’re wondering about this, just ask yourself the last time that you looked at your bank account and thought:
“I thought I had more than that…where did it all go?”
Remember that wealth can ONLY happen on purpose. If you don’t have a plan for your money, you’ll spend your life losing it to someone who does have a plan for your money. If you aren’t keeping track of where your money is going, you aren’t managing your money on purpose.
And this is where the last principle comes in…
Wealth Principle #10: Get Started Right Now
As you’re reading this book, you’ve probably seen at least a few things which have made you say:
“Yeah, I need to do that.”
Start right now! Seriously, stop reading and get started. Write down your plan of action and set a time to take the first action: to write your business plan, to exercise, to make a budget, to pay off your credit cards, to decide how much you want to make and why.
Think about this: if not now, then when?
Never! And you know this. Wealthy people don’t procrastinate. They make things happen, they do it on purpose and they don’t make excuses. So before you continue to the second part of this ebook, take the first step towards changing your financial life…