The Secrets for Creating Wealth
The Systematic Question
What does it take to create wealth?
What is wealth that we want to create?
What do you need to know about wealth creation to become an effective wealth creator?
Are there secrets of wealth creation and if so, what are they?
Are there any myths about wealth creation to be alert to?
#1: Wealth Creation is Profoundly Simple.
The knowledge about how to create wealth isn’t Rocket Science.
To become a millionaire, all you have to do is learn to think like a millionaire, to develop a Millionaire Mind.
Knowing is not enough, you have to do. So while the strategy for creating wealth is simple; the execution of that strategy is not.
The strategy: Identify your potential talents with a passion, invest in your own development so you create valued skills, find an economic engine and the right market, develop your business sense and structure, persist for a decade, handle the ups-and-downs with resilience, keep your vision passionate and keep learning to give more and more value.
#2: There is no Magic Bullet for Creating Wealth.
There’s no one secret, there are a great many secrets or principles for wealth creation.
Run from anyone who says they have “the secret!” They are usually looking to create wealth for themselves by taking it from you.
Wealth involves many steps and stages and so it is best created by creating a plan and working that plan.
#3: You can’t create Wealth Quickly.
It takes time to create wealth through the steps and stages.
Wealth is created as a process over time.
Financial wealth is best created using a ten-year focus and ten-year plan.
Those who get rich quickly don’t keep it. It ruins their lives.
Effective wealth creators think long-term.
Time-Line for Wealth Creation
#4: Wealth is not money, it is creating value.
Money is just a sign of wealth, not the core or essence of wealth.
You have to get money out of your eyes to be able to see opportunities and create wealth.
Money is just an exchange of value.
Wealth is finding and creating things that add to the quality of life.
Wealth is holistic— mind (creativity), emotions (enjoyment), speech, skills, relationships, health (energy), time, effectiveness, efficiency, etc.
Money cannot buy wealth!
The heart of wealth and wealth creation is giving value.
Wealth is created first in the mind as solutions that give value to needs or wants.
#5: Wealth is created Inside-Out.
Wealth is not created or gained from the outside-in.
First you have to become wealthy in you mind, emotions, speech, behaviour, skills, etc.
Wealth is a state of mind and emotion that enables you to express wealth verbally and behaviourally.
#6: Salary poorly indicates Financial Wealth. Saving and giving are better indications.
Financial wealth is created by how much you save, not how much you earn.
Aim first for financial stability, then independence, then freedom.
If you are living pay-check to pay-check with all the looks of wealth, you are financially insecure.
Wealth is created by frugality— squeezing all the joy you can out of everything you have, own, and experience so that you have a high joy-to-stuff ratio.
#7: You and you only are responsible for your financial success.
Wealth Creators assume full responsibility for their financial success.
Wealth is knowing and enjoying the fact that you and only you are responsible for creating your wealth.
It’s not your bosses job to make you financially stable, independent, or free.
Owning your response-powers gives you personal, internal wealth.
#8: Wealth is created by Giving, not Getting.
Creating Wealth requires fully investing yourself in giving value.
Wealth is created by joyful and passionate effort.
Wealth is created by finding your singularity (potential, passion, and profit).
When you find your singularity, you stop “working.” Your work then becomes play.
#9: Wealth is created with and through others.
No one creates wealth alone. Who will get rich with you?
Wealth is created as a team effort and so requires cooperation and collaboration.
Wealth is created through the social skills of listening, communicating, supporting, connecting, caring, coaching, mentoring, training, etc.
#10: Wealth is created by focus, passion, persistence, discipline, and resilience.
Wealth creation is a lifestyle— it is holding a focus on a vision and mission and pursuing it with discipline, persistence, and resilience.
Wealth is created by seeing and seizing opportunities.
Wealth is created by managing risks. You can’t create with without taking risks.
Source: L. Michael Hall, PhD, Inside-Out Wealth