How To Create Wealth

How To Create Wealth

OK, I admit it, I’m wealthy.

… and not just a little either.

But before you decide that that means you don’t like me any more, let’s just get clear on what I mean by that.

Please read this brief article to see what I mean: It’s Not About The Money, Money, Money.

i.e. I’m talking about true wealth, not just money.

So that being said (well, written):

What if I told you that creating wealth (including money) is really easy?

Would that make you think I was just another one of those get rich quick gurus?

Hopefully not if you read the article I just pointed you to.

The fact is, it is really easy to create wealth, but only if you are prepared to change your mindset (which admittedly isn’t that easy for some).

If You Struggle With ‘Mindset’

Luckily this website is full of articles that help with the mindset side of things – just have a look through our archives, or do a search on ‘limiting beliefs’.

The Wealth Mindset

So the fact of the matter is that wealthy people think differently. They have a different mindset. There are many ways that wealthy people think differently and I could write you an article on each of them, but as we don’t have time for all of that (well, I don’t), I’d like to do my favorite thing and simplify things down to some of what I think are the most important points.

Wealthy people think differently.

Before I do that, I’m also going to list all of the things I could have written more about (and may still in future articles) just because I think that, even as headlines, these could be really useful.

Some of these I think are pretty common knowledge but worth pointing out anyway in the context of this list and whilst we’re on the subject.

  • Wealthy people don’t spend money, they invest money.
  • Wealthy people don’t think money is the root of all evil.
  • Wealthy people take action
  • Poor people think formal education increases your chance to get rich. Wealthy people educate themselves.
  • Wealthy people experiment
  • Poor people have poor habits and don’t do anything to change them. Wealthy people have good habits and work to make them better.
  • Poor people spend too much time in the past. Wealthy live in the present and invest for the future.
  • Poor people see money through the eyes of emotion. Wealthy people think about money logically.
  • Poor people follow the crowd. Wealthy people dare to be different.
  • Poor people earn money doing things they don’t love. Wealthy people follow their passion.
  • Wealthy people live life on their own terms.
  • Poor people focus on DOing. Wealthy focus on BEing.
  • Wealthy people understand the importance of networking.
  • Poor people believe you need money to make money. Wealthy people know how to use other people’s money.
  • Poor people live beyond their means. Wealthy people live within theirs.
  • Poor people teach their children how to survive. Wealthy people teach their kids to create and explore.
  • Poor people believe the markets are driven by logic and strategy. Wealthy people know they’re driven by emotion and greed.
  • Poor people let money stress them out. Wealthy people don’t attach emotion to money.
  • The poor person sees the problem. The wealthy person sees the challenge (and the opportunity for greatness when they overcome that challenge).
  • Poor people would rather be entertained than educated. Wealthy people would rather be educated than entertained.
  • Poor people often judge and dislike wealthy people. Wealthy people want to surround themselves with all kinds of people and learn from them.
  • Average people focus on saving. Wealthy people want their money to work for them so focus on investing.
  • Poor people play it safe with money. Wealthy people know when (and how) to take risks.
  • Poor people love to be comfortable. Wealthy people find comfort everywhere (even in uncertainty).
  • Poor people see wealth and family as a trade-off. Wealthy people know you can have both.
  • Poor people enjoy spending money. Wealthy people don’t generally feel the need to spend money – it’s just a means to an end.

The Wealth Mindset – Simplified

Here’s where the money is (sorry, couldn’t resist).

You know I like 3’s – so here are what I think are the three most important changes you can make to make radical changes to your wealth for the better and not only that but make lasting improvements for the rest of your life (assuming you continue to follow the advice below).

As you may know, I recently wrote a book entitled The 3 Secrets To Great Networking.

Well, the following 3 things could well be The 3 Secrets to Great Wealth.

I think they are.

These would be the things that, from experience I’d say will make the greatest difference in terms of building your wealth. For the moment I have too much on to write another book – so you get these for free – that doesn’t mean that they are any less ‘valuable’ – please do give these some serious consideration and then let me know if you see any difference in your wealth.

1. Live Within Your Means

It starts with living within your means. That means that whatever you earn each month, you need to spend less. If you can’t afford to, then let me know in the comments and we can have that conversation. The point is that we must. Otherwise we are creating an ever increasing financial problem.

2. Invest

OK, so assuming you are living within your means, then the money you do have should be invested wherever possible rather than being simply spent. If you invest your money then you are building your assets (or at least trying to) and if you are building your assets then you are building your wealth.

3. Educate Yourself Financially

This means don’t be fooled (for example by scams). It means put in the work and don’t expect to make an easy buck (or if you do, then accept that you are taking a lot of risk). It means carry out due diligence when it comes to making investments. It means enjoy learning what can be done when it comes to building wealth (it’s all out there and publicly available, you just have to look, question and look again). Start your financial education by reading this article: 9 Important Questions To Ask When Making An Investment.

Comments Please!

So what do you think?

Are you ready to get wealthy?

Do you agree/disagree with any of the points above.

Let me know if you do or if you have any questions.


Comments

How To Create Wealth — 9 Comments

  1. The wealth mindset, certainly in my experience, can take a while to build if it isn’t part of your upbringing. I was raised to believe buying a house is the best investment, without the education behind WHY it was, and when it wasn’t.

    So to change this decision making process can take some time as it applies to everyday life, and not just big investments.

    So what can we add to your list – that wealthy people are made, rather than born??!!

    • I have no idea whether wealthy people are made rather than born, what do you think?

      I really don’t know where I stand on all that fate stuff, on balance I think you generally have to go out and get what you want. It’s not going to hurt to take a bit of action, anyway, is it?

      I tend to make good decisions in the end when it comes to wealth but I have plenty of doubts, limiting beliefs and demons, just like everybody.

  2. Well, I don’t quite know anything about managing money (I suppose I do know some, lessons learned through experience :D).

    You are right, most people consider wealth as just money. But, money is one among the different factors.

    I don’t particularly want to be wealthy, in terms of money. But, one of my long term goals is to build a world class enterprises/corporation – an enterprise built on innovation and customer experience, rather than on just profits πŸ˜€ So, in a way, I do want to be wealthy (in some ways, I already consider myself wealthy: I like to experiment, I understand the importance of innovation and networking).

    Anyways, appreciate the tips, Alan πŸ™‚ Sorry I couldn’t add more to the topic. I don’t have much experience with this topic, not yet πŸ˜€

    • Yep, plenty of miserable ‘rich’ people out there. It’s a good idea to first of all reflect on what wealth really means for you then go for it!

      re: the world class enterprise, why not? You already have the most important skill you need for that & you’re very good at it!

      thanks for the comment!

      Alan

      • Agreed πŸ˜€ Another problem is that too many people believe money can solve problems (sure, some problems, but not all, right? Money can also create new problems).

        I hope I do πŸ˜‰

        No problem πŸ™‚

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