Seven Secrets to Wealth Creation

Wealth creation is not a matter of luck it is the result of applying an appropriate strategy. Here are seven wealth building secrets that can help you put together your own winning strategy to increase YOUR personal wealth.

Secret 1: Have a Strong Reason To Become Wealthy

You need a stronger motivator than the money. What is the real benefit that you will receive from becoming wealthy? How will your life change for the better? Unless you have an emotionally strong reason to become wealthy, you are unlikely to do what it takes.

Remember that mediocrity in the western world is a pretty good lifestyle and it’s easy to achieve. You need some special potential benefit to get you to go the extra mile and achieve wealth.

Secret 2: Find a Strong Market Place

Your wealth has to come from somewhere and that somewhere is called the marketplace. What marketplace are you targeting?

It is important that you choose a marketplace that is strong enough and healthy enough to provide you with all the opportunity you need in order to reach your financial goals.

Secret 3: Have a Strong Vehicle

How are you going to tap into that strong marketplace? You need to have a vehicle that has the potential for providing the results you seek. The vehicle needs to be strong enough that it will do the job you are asking of it, both now and for a reasonable time into the future, regardless of how the market is changing.

Secret 4: Develop or Hire Strong Knowledge

Applied knowledge is power. If you are going to take your vehicle to the heights it needs to achieve in order to provide you with wealth, then you must have the knowledge of how to do that. Some knowledge you need to have yourself and other knowledge you can hire in the form of employees or outsourcing.

What knowledge do you need to add to your knowledge bank and where are you going to get it?

Secret 5: Develop and Tap Into a Strong Network

Nobody gets rich on their own. You need a strong network of contacts, each of whom will play their role in your journey to riches.

Your will need a network of people to help you stay on track. A network to brainstorm with. A network to help you market your vehicle. What is your current network like? Do you have good relationships with all the people who can help you achieve your goals? If not where are you going to find them and how are you going to recruit them into your network?

Secret 6: Have a Strong Risk Management Strategy

The self-made rich don’t avoid risk, like the average person does; they find ways to manage risk. When you know why you are becoming wealthy, and you have the right market place and the right vehicle, make sure you also have a strong risk management plan to keep it all on track.

Secret 7: Have a Strong Commitment to Your Success

The last secret, and the most important behind knowing why, is to have a strong commitment to succeeding. Your commitment has to be unshakable. You are highly likely to meet with obstacles along the way and some of them may be very challenging. The thing that will get you over, around, or through those obstacles is a strong, unwavering commitment to achieving your goals.

Now that you have the seven secrets it is up to you to assess how you stand currently on each one, and then to do whatever it takes to bring yourself up to speed so that you will enjoy the fruits of your own wealth creation.

Wealth Creation Tips

Anyone can create personal wealth and it’s possible to meet your financial goals. If you opt to budget, save and invest, you can pay off debt. Moreover, you can send your child to college, buy a comfortable home, start a business, save for retirement and put money away for a rainy day. In other words, all these goals are within your reach through budgeting, saving and investing, and by limiting the amount of debt you incur.

What is Wealth?

Some people consider themselves wealthy because they own and live in a very expensive house, travel around the globe and they’re able to pay their bills at any cost on time. People are said to be wealthy when they are able to accumulate many valuable resources or goods. For individuals, net worth is the most common expression of wealth, while countries measure by gross domestic product (GDP) or GDP per capita.

How Do You Acquire Wealth?

Most people who have wealth didn’t build it overnight. They got rich by setting goals and striving to reach them. Building wealth requires having the right information, planning and making good choices. This article provides basic information and a systematic approach to building wealth.

A personal wealth-creation strategy is based on specific goals. In preparing your goals:

· Be realistic

· Establish time frames

· Devise a plan

· Be flexible because goals can change

Save and Invest

What is savings?

The amount of money that is left over after personal expenses have been met can be “positive” only for those who are financially prudent. On the other hand, for those who tend to rely on credit and loans to make ends meet, they will have “negative” savings.

What is an investment?

After you have budgeted and identified an amount to save monthly, where are you going to put your savings? By investing, you put the money you save to work making more money and increasing your wealth. An investment is anything you acquire for future financial gains or benefit. You can increase your investments by generating income (interest or dividends) or by growing (appreciating) in value. Income earned from your investments and any appreciation in the value of your investments increase your wealth.

Learn the Language of Wealth Creation

· Assets – A wealth-creating asset is a possession that generally increases in value and provides a return

· Liabilities – Also called debt, this is money you owe, or your bills. Some examples: car loan, student loan, medical debt.

· Net worth – Net worth is the difference between your assets (what you own) and your liabilities (what you owe). In other words, net worth is your “wealth”.

Being wealthy is possible to anyone. As long as you have knowledge, goals and more importantly, discipline; you can be rich one day.

The Obstacles to Wealth Creation

Financial freedom is probably near the top of every person’s wish list. No one wants to spend his entire life working a job he doesn’t like simply because he needed the money. However, despite the unanimous opinion that this type of freedom is something to be sought after, majority of the people living today are not working towards it – either because they don’t know how, or because they don’t think it is feasible in their own lives.

But financial independence is always a possibility to those who understand the process of wealth creation. The formula is simple: earn more than you spend, and save the rest for future investments that may lead to passive income. This simple formula is easier said than done though. There are plenty of obstacles that may hinder you from reaching your goals. If you want to be wealthy you have to know what these obstacles are and you have to find ways to avoid them. Here are a few obstacles that you’d best avoid:

1. Debt

The most destructive force to your financial health is bad debt. Many people have lost their homes and other property to bad financial decisions that involve taking on large debt. The process of wealth creation can’t begin as long as you have debts. It’s just not possible. The first thing you have to do, before you even dream of financial freedom, is to get out of debt as soon as possible. The longer you stay in debt, the farther you will be from your dream. Debt is a cancer to your financial well-being, and similar to a medical illness, prevention is the best cure – just don’t get into debt. Clamp down on your expenses; take a second job; cut up your credit cards; do what you have to do in order to avoid debt.

2. Luxury

Advertisements everywhere will try to convince you that you deserve to stay at the most expensive hotels, drink the best champagne and wear the most expensive jewelry. Don’t be silly. The only people who “deserve” such extravagance are those who can afford to throw money away because of the ridiculous wealth they’ve built. Wealth creation begins with discipline. You have to be able to delay gratification. Every day you will have to choose long-term and permanent financial freedom over transient pleasures. Only then will you have a shot at financial independence.

3. Saving Money for Its Own Sake

Have you ever met a person who became wealthy just by saving all his money in a bank? Great entrepreneurs save money in order to be able to afford ventures that make money. The process of wealth creation is supposed to create wealth, not keep wealth in a bank. You can achieve financial freedom by turning your money into assets that can serve a future purpose. The value of money itself decreases over time. You have to turn that money into an investment that increases in value, like real estate in a developing area or stocks of a rising company.

4. Vice

Vices are not only expensive; they’re also bad for your health. Let’s say you smoke a pack of cigarettes a day and each pack costs $5. In a year, you’d have spent $1825. In 20 years, you’d have spent $36,500, not including the medicine you would have spent on the ill effects of such a vice. That is money that every single person who doesn’t smoke saves just by not being involved in one vice. Just imagine how much you would save if you were able to eliminate all your vices. Financial freedom is achieved easier by people free from such expenses.

5. “Get Rich Quick” Schemes

Wealth creation is a long process. It’s not just a matter of “earning” a lot of money. It’s also about developing the right values over that period. It’s about learning through experience. It’s about overcoming obstacles. People who like short-cuts may hit the jackpot and earn big, but chances are, they’ll lose the wealth they gained just as quickly. Even worse, their eagerness to “get rich quick” might make them vulnerable to swindlers. If you encounter a deal that sounds too good to be true, chances are, it is. Stay away from “get rich quick” schemes.

Wealth creation is a process that takes time. Don’t rush through it. Learn to love the process. Cherish every experience. The path to financial freedom is one of the most exciting journeys you’ll be making in your lifetime. Try to recall your high school or your college experience. It may seem like a long time while you’re there, but as soon as it’s over, you can only hope to do it again. One day you’ll be looking back on this process with joy and appreciate every setback that taught you a lesson, every deal that built a business relationship, and every dollar earned honestly. Enjoy the process and you’ll build great wealth in no time at all.