The Key Principle To Wealth Building

The Key Principle To Wealth Building

If what makes for financial fortune is still a secret to you, it shows you have not made efforts to search it out. There is nothing new under heaven. There is nothing you want to achieve today that someone somewhere has not achieved. Your greatest task in the pursuit of financial freedom is to search out what the wealthy have done to accumulate their wealth, and then, do the same until yours becomes a reality. The truth is that you don’t have to reinvent the wheel of financial fortune. The principles of financial freedom are no longer secrets. The information age has democratized access to wealth and financial freedom forever. It has opened up access to the needed information that makes wealth creation a possibility for everyone. It’s no longer the exclusive right of a certain privileged class of people. Anybody who will do what is needed can become wealthy. Emulate The wealthy Apostle Paul said, “That ye be not slothful, but followers of them who through faith and patience inherit the promises.” You are admonished to follow or walk in the steps of those who have achieved whatever it is you want to achieve. This is called the Principle Of Emulation. This principle teaches that you will achieve your financial goals to the proportion to which you find out what the wealthy have done, and you then do the same things until you have achieved yours. The most important principle of wealth-building is to learn from those who have accumulated wealth. In his best-selling book Unlimited Power, Tony Robbins said “If you want to achieve success, all you...
4 Money Personality Types

4 Money Personality Types

The term personality refers to the set of traits and patterns of thought, feelings, and behavior that define who you are as a unique individual or that make you who you are. It’s generally a product of both biology and environment and remains fairly consistent throughout life. As a wealth seeker or one who desires financial freedom, it is most important for you to understand that your personality can determine your financial results in life. Personal Finance Is Dependent Upon Your Behavior  This is essentially because nothing influences your thought, feeling, behavior, or response towards money like your personality. And don’t ever downplay the ultimate effect of all of these in your quest for financial freedom; because they ultimately determine your financial results and well-being.  More than habits, the way you manage your money is majorly a reflection of who you are. If you fear and hate financial embarrassment, then there is a great tendency for you to be inclined toward saving money. Please, it is important to understand that one of the key reasons some people seem to be good at managing their money and always having surplus money, while others are always struggling with their finances is their personality. Your money personality plays a key role in your ability to handle and manage money.    What Is Money Personality? Your money personality essentially defines how you relate to money or handle money. It is made up of the way you think about money, the belief system that guides your behaviors and actions.  Your money personality is not limited to how much money you have, but much more...
4 Key Components Of Wealth

4 Key Components Of Wealth

In your quest for wealth and financial freedom, it is vital for you to know the key components or elements of a wealth system. Your knowledge of these components will help your understanding of how they relate and impact each other and ultimately, how they contribute to your wealth-building endeavors.  This will help you know what to downplay and what to emphasize and focus on. It’s important to know that the effective management of these components will determine your overall wealth. This is crucial! Now, here are the four fundamental components of wealth: Income Expenses Liabilities Assets 1. Income: This is the first rung on the ladder of wealth-building. It’s your number one wealth-building tool; a vital component of your wealth system. Though, a vital wealth-building tool, yet, it is not the most vital in your quest for financial freedom. Many people have ignorantly assumed income to be the most important element in wealth-building; as a result, they are all about salary raises and earning huge income.  Unfortunately, wealth is not so much of how much you earn as income, but what you do with what you earn. Please don’t get me wrong. Earning a huge income is great, and can be a huge booster to your wealth-building endeavors. But in the final analysis, it is what you do with your income that determines what impact it will ultimately have on your wealth plan. What is the importance of a huge income that is totally spent on lifestyle maintenance?  This brings us to the second key component of wealth. 2. Expenses: These are your financial outflows. This is money...
7 Types of Income

7 Types of Income

One of the fastest ways to grow your wealth is to generate income from multiple avenues. This makes your money grow exponentially. In your quest to build wealth, it is important to know and understand that the more sources of income you have, the faster your wealth can grow. The possibility of attaining your financial goals can drastically be increased with multiple streams of income. Wealthy people all around the world generate income from multiple sources. They understand the power of multiple income sources in their wealth-building endeavors. No wealthy person the world over has one source of income stream. Their wealth is created, fed, and sustained through the concept of multiple streams of income. Unfortunately, most people have only one income source: their employment. They work to receive a paycheck at the end of the week or month. When you generate income from multiple sources, you can reduce the risk of relying on any one income stream, especially in this uncertain economic environment in which we have found ourselves. And increase the odds of enjoying financial stability in your favor as your earning potential grows over time from multiple sources. Building multiple streams of income is no longer a luxury; it has become a necessity if you will ever make a reality of your financial dreams and aspirations. Having multiple income streams is a powerful wealth-building tool, with it you can increase your wealth passively. Tom Corley, author of “Rich Habits,” studied the habits of millionaires during a five-year study of the rich and poor. Here’s what he found as it pertains to most self-made millionaires and their...
Financial Freedom: Four Groups Of People You Must Not Emulate In Your Quest To Be Financially Free

Financial Freedom: Four Groups Of People You Must Not Emulate In Your Quest To Be Financially Free

One of the key principles of success is the principle of emulation. This principle says, you will be successful in the proportion to which you find out what other successful people are doing, and then do the same things yourself over and over again. As a wealth seeker, this principle can dramatically increase your probability of achieving financial success. Unfortunately, there is a limit to which you should emulate some groups of “financially successful” people. Listen, in your quest to live a financially free life, there are four groups of people you must not emulate or model their spending habits and lifestyle. Many of these people came into wealth, not as a result of financial intelligence or wit, but have wealth thrust on them through luck. As a result, they are careless in their spending. They live a lavish lifestyle and spend as if there is no tomorrow.  1. The Pseudo-affluent: these are mostly professionals and corporate executives, who earn a high income, but spend the majority of what they make on lavish lifestyles.  They live big and large: they drive the latest high-end luxury cars; wear expensive designer suits and clothes fly first class and dine at the best restaurants.  They have the appearance of wealth; unfortunately, they do not have the true substance of wealth- assets. As a result, they are usually just one to two paychecks away from being broke. 2. Wealth Inheritors  Many wealth inheritors are prodigal sons and daughters who are unable to preserve, let alone grow whatever wealth they inherited.  These are people who have not had to worry about money for much...
Financial Freedom: Why Paper Assets Might Be Your Bet For Building Wealth

Financial Freedom: Why Paper Assets Might Be Your Bet For Building Wealth

Enjoying financial abundance and achieving financial freedom is no rocket science. As a result, anyone should be able to walk in the reality of this realm. What is basically needed for anyone to build wealth and achieve financial freedom is to do all is possible to boost income and control expenses, and then invest the surplus for compound growth. The ESI strategy is a sure path to financial freedom. ESI strategy simply means Earn, save and invest. If you’ll earn all you can, save as much as possible, and invest your savings wisely then it’s just a matter of time before you partake of the banquet of prosperity. Listen, if you embrace and truly put this simple strategy to work, you can almost be sure of enjoying financial freedom. The ultimate goal of the ESI strategy is investing. Investing is simply getting your money to make you more money. It is getting your money to work for you so you can eventually stop working for money.  Investing a part of your earnings is a crucial key in your quest for financial freedom. Financial freedom is simply the point where the PASSIVE income from your INVESTMENTS is equal to or greater than your living EXPENSES.  Financial freedom is not in amassing millions of dollars in savings on which to live. It’s not about a fat salary from a job, but everything about cash flow from your investments and assets. It is simple to have enough cash flow coming in every week or month from your investments and assets to meet your living expenses, whether you work or not. You don’t have to be fabulously rich...