5 Easily Observable Rules Of Creating Wealth
These time-tested rules are often overlooked.
You have likely consumed an enormous amount of content on this topic perhaps looking for the magic formula to more riches than some dare to dream. I suspect that after reading all the books, articles and carefully listening to the podcasts and interviews of truly successful people you have also, like me, come to the inescapable realization that there is no magic lamp to rub when it comes to creating real wealth.
Though there is no lamp to make stupendous wealth magically appear, there are some basic rules to follow. These rules are time-tested universal truths of real wealth creation and you can apply them in your unique situation, on any scale and they will work for you.
These are sacrosanct, timeless rules proclaimed by countless successful, moneyed individuals who dutifully observe them to great success. They are, therefore, the golden rules which, you should take to heart too if you wish to tread a similar path and make your dreams come true.
The rules
- The most important rule is: knowing where not to venture into. Like those get-rich-quick schemes that promise you fantastic gains. The smart ones resist the urge to jump into these schemes. Rather, they invest in reliable and growing ventures that will ensure a steady return even if the amount is not as fantastic as the get-rich-quick schemes. They know that those schemes are designed to enrich their creators and operators, not the gullible ‘investor’. And as correctly observed by Larry Burkett ultimately force you into 3 fatal errors: -you get involved with things you do not understand; -you risk funds you cannot afford to lose, and -you also make hasty decisions.
- Before you venture into a business, familiarize yourself intimately with any risks or pitfalls that you may encounter. This is not to say successful people don’t take risks. On the contrary, they have to. After all, you cannot win if you do not play. However, they are always prepared and they approach such risks after careful planning and preparation. “You don’t climb mountains without a team, you don’t climb mountains without being fit, you don’t climb mountains without being prepared and you don’t climb mountains without balancing the risks and rewards. And you never climb a mountain on accident — it has to be intentional.” -Mark Udall
- The next rule mandates that you seek out people with actual expertise, experience, and accomplishments in the field. This is of the utmost importance for any type of venture you have decided to be invested in. If you take advice from just anyone you are very likely setting yourself up for a fall. “Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.” -George S. Clason
- The next is, no matter what level of success you may achieve it is always worthwhile to invest in increasing your ability to achieve even more. This means you should always take the opportunity to increase your education and knowledge, your skills, acquire new tools, or further your professional standing. It may be that all work and no play make Jack a dull boy but Jack must build himself up first, then he can play. “The most important investment you can make is in yourself.” -Warren Buffett
- And finally, avoid being driven solely by greed. Contrary to fictional tycoons like Gordon Gecko (Wall Street) and Bobby Axelrod (Billions), greed can be bad for business. It can pretty much destroy all you have built or are trying to build if it guides your actions all the time. “Successful people are always looking for opportunities to help others. Unsuccessful people are always asking, what’s in it for me?” -Brian Tracy
Yes, you can have big dreams. People have grown multi-million dollar businesses from peanuts. Relatively speaking of course. However, it took time, patience, knowledge, informed decision-making, careful planning, and consistent effort. Those who have achieved this did so gradually rather than jumping from one-time risky business to the next regardless of their capacity or ability. A Wise man once said: “money runs from the one that tries to force it to do impossible things”.
So in a nutshell:
- always take the opportunity to improve yourself because it increases your ability to create even more wealth,
- avoid senseless greed and opt for a steady, constantly growing venture,
- take the trouble to familiarize yourself intimately with all the cons along with the pros, and
- take advice from actual experts in the field.
Follows these golden rules religiously and you too can succeed on your journey to wealth creation.
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