There are lots of wealth creation principles today teaching people how to build wealth, all kinds of advise are already flying around town educating people on ways to get rich.
Well, some of these principles work and others condition people more into poverty.
However, most people don’t take the time to work out these principles with patient, hence they give up half way looking for another quick alternative.
Hence, this article talks about six powerful wealth creation principles you need to make the most of your financial life.
The truth here is, waiting to start earning a million dollars before implementing these strategies is like waiting for a ship to arrive at an airport.
Oh my goodness, you’ll wait for life.
Therefore, irrespective of your age, belief, race, color and income status right now, I encourage you to quickly take these tips on how to build wealth into action.
It doesn’t matter how much money you earn per hour, daily, weekly or monthly.
If you care to put the stuffs am about to show you now to work, you’ll surely get a great boost in your financial life.
Oh, I know you must be saying in your mind right now, how sure are you that these principles will work for me?
Well, just before we proceed, let’s remind ourselves that money only goes in the direction of value.
Therefore, ensure you get yourself a job, a business or what puts money in your pocket so you can take control of these money principles to build wealth.
If you don’t have a business now, here are 12 fantastic ways of getting money to start a business.
Table of Contents
6 Powerful Laws to Build Wealth Even If You Earn Peanuts:
Let’s quickly check out the 6 most powerful laws of wealth creation that will educate us on how to build lasting wealth.
1. Keep A Part Of All You Earn, Save At Least 10% Of Your Income:
It’s important for you to know that a part of all you earn is yours to keep.
You pay the cab driver for a ride, you pay the food vendor to deliver food stuffs to you and you also pay the fashion designer for your new dress.
Hence, many people take a share of your earnings and most times you end up not paying yourself a dime.
It’s no longer new that many financial experts advise people to pay themselves first.
I believe this is self explanatory but let me break it down a little.
If you earn $5000 per month and you keep 10% of that money which is $500, in 1 year time you would have conveniently saved up $6000.
Here are some of the most powerful ways to save money without a bank.
No matter your expenses try to save at least 10% of your income.
Your saved money could be used as an edge to cover up when you run out of cash.
On the other hand, some people succeed in using their saved cash to start up a business of their choice.
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2. Get Your Money Work For You, Investing Your Money Makes It Multiply:
Investing your money wisely makes your money work for you. Rich people make their money work for them, while the poor work for money.
Here are 30 differences between the rich and the poor.
Putting your savings to work makes it multiply.
It makes no sense to pile up money in one bank account without using it productively.
I advise you put your saved money to work.
Invest in businesses you understand and avoid get rich quick schemes that promises you a 100% profit margin in less than 2 weeks, 1 month or 3 months.
The problem today is that most people are good savers and bad investors.
They save a lot of money but still end up blowing it up in a bad business deal.
If you don’t find a way to make money while you sleep, you will work until you die.
WARREN EDWARD BUFFETT, CEO of BERKSHIRE HATHAWAY, AMERICAN BUSINESS MAGNATE, INVESTOR AND PHILANTHROPIST.
3. Get Out Of Debts, Poor People Pay Interest, Rich People Earn Interest:
Debts might be cool if you’re sure about using the money to produce wealth that are capable of covering up both the loan capital and interest.
This is one psychological business discipline of a good entrepreneur.
True wealth is freedom, while debt is slavery.
The poor pay interest whereas the rich earn interest.
Well, it’s possible to get rich with debts according to Robert Kiyosaki, he calls it good debts. However, this requires some good level of financial education.
Otherwise, stay away from debts.
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4. You Can’t Build Wealth With Get-Rich-Quick Schemes, Invest In Solid Businesses That You Understand:
One of the most dangerous investment you should avoid are investment that promises to multiply your money over a 100% in 30 days.
So many people today are victims of get rich quick schemes because of greed.
They want to get rich without going through the laws of work and nature that leads to wealth creation.
Getting rich involves building an income column, it could mean building networks and systems them would generate passive cash flow income to you daily.
5. To Build Wealth, Invest In Yourself, Acquire Knowledge And Skills To Increase Your Earning Power:
Off all the investment you can make in our world today, one of the best investment you should make is investing in yourself.
Learn a skill, invest in acquiring more knowledge, make researches and explore. Build your mental capacity.
Grow your intellectual capacity. In the developed world, intellectual capacity is wealth.
Lack of intellectual property is the reason for poverty in most of the poorest nations in the world today.
Zero personal investment is one of the 6 most painful ways people lose money without knowing.
6. Safeguard Your Growing Fortune With Diversification And Insurance:
Insuring your wealth is so important if it must survive harsh times like sudden financial losses in business.
Hence insure your businesses, cars, properties and other valuable you own.
Diversification is also a good way to safeguard your growing fortune, this means investing in various businesses with great potentials for future growth.
True wealth is one that lasts for a lifetime and passed over to many generations to come.
Hence one of the most important law of money is to safeguard your growing fortune either by insurance or diversification.
There are lots of insurance companies offering amazing premium plans that would help you protect your growing fortune.
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Final Thoughts:
I would like to add some touch of sense to the six laws on how to build wealth above. It takes the disciplines of asset building to grow financially.
Long lasting wealth is not a game of cards, it takes the inner power of discipline, determination, focus and the need to overcome greed if you would ever build real wealth.
No wealthy man on earth today got there by chance, they set intentional goals, make plans and take bold steps to make a mark in their financial life.
Hope you got value here, share your thoughts and contributions with me at the comment section.
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