To make money you do not need money, as many think. Not today, because we are not in the industrial era but in the knowledge era. House, property, savings in the bank, titles, inheritance, all these are just by-products of true wealth.
The greatest financial asset is “your capacity to generate different incomes’ i.e. the ability to make money, create revenue streams, and create assets that are regularly rented … something controllable and scalable. You can do it with two steps: 1) educate yourself financially (a minimum year and then reeducate for life) 2) increase financial intelligence (it is the result of the above and takes more years).
The average person does not develop these skills and only knows one way to earn his income and unfortunately it is at the cost of exchanging his time for money.
The idea of quick and easy wealth is not a realistic one. The abundant person sees things that the rest do not see, distinguishes opportunities where others do not perceive anything.Generating any business idea is only the easiest part; what we are discussing here is activating the ability to transform them into viable projects.
Strict definition of wealth creation
In a strict sense, the true creation of wealth is not contained in the jobs, neither in the profits, nor in the capitalist dividends generated by that activity.The wealth created, as the object of creation, is contained and represented in the good or service created.
The real wealth produced by a car factory is cars, the real wealth that a telecommunications company produces is the service it provides and the true wealth that a blacksmith creates are the iron tools it manufactures.
If the creation of new wealth is limited to the goods and products created, would a factory that produced cars, even if it did not give business profits, for the simple fact of producing goods, be creating wealth? Unfortunately not.
It would not be creating wealth, but destroying it.
And this is so, because the car is so rich that it is produced as steel, energy, or the time and human effort that is used in its manufacture.
Generally the rich people are not admired for having achieved wealth, if not criticized by the majority. There are many questions that are generated around this topic: Why when two people get the same income end up having different riches? What are the keys to wealth? What is the reason why there are richer people than others? The 8 main keys are:
- You must desire wealth: It is impossible to achieve something you do not want. You have to think you can get it.
- Understand wealth as positive: As antagonistic to the first point, you cannot get something you hate. You must accept it as something positive.
- Identify the percentage you want to save: With each gesture of consumption you decide the destination of your wealth. So first decide which part you want to keep for yourself, as a payment you make to yourself. Think about what percentage of all the money that goes through your hands you want to save. Thus, if you establish that it will be between 10% and 15%, it is a matter of you withdrawing that amount. You will end up accommodating your level of spending to your disposable income.
- Wealth is a continuous act in time: Except chance, if you’re not rich now, tomorrow you will not either. It is an act that extends over time. A small act of saving, by itself, generates absolutely nothing. However, maintained for a long time, generates a wealth that can reach a considerable magnitude.
- Reduce your expenses: The first thing is to identify what your minimum mandatory expenses are. You have fixed expenses that you have to assume indisputably. You will realize that some are not necessary and you can reduce them.
- Decide the maximum level of luxury you want to allow: Do not completely eliminate the leisure from your life, if not reduce them. Limit the amount of your wealth you want to allocate to certain things, which can report satisfaction simply in the short or medium term.
- Get your wealth to work for you: When you are able to save for a while you have the capacity to invest, which could generate more money. Wealth generates more wealth.
- The best time to plan your wealth is now: If you start today, tomorrow you will have a little more saved, a little more wealth generated. Grain by grain the mountain is achieved.
Conclusion: the secret of abundant wealth are not things, it’s not money, it is not business, and it is your ability to improvise different incomes continuously. Knowing how to make money is the only key to more money.