Wealth Creation Golden Rules
There are some golden rules to wealth creation. These rules are like rules of gravity, meaning, they cannot be challenged. For example, if you choose to jump from the top floor of a building, whether you believe in the existence of gravity or no, would not matter at all, because gravity acts and shows you the results. In the same beat, if you choose to disbelieve the following rules of wealth creation, the risk is always lurking ready to catch you off guard.
Believe that you can be Wealthy
This is the most basic rule, which most people refuse to abide by. They may express their desire of money overtly but deep within they do not believe that they deserve to have money. They have doubts. These doubts hamper the process of wealth creation like none other. Read the books provided by Health & Wealth Centre, participate in recommended wealth mentoring programs and see the role, which psychology of affluence plays in your wealth creation process.
Monitor your Earning and Expenditure Ratio
It is extremely important to keep your expenditure less than your earnings. This is another rule that is so often broken. Before you start with a rebuttal, just look at your credit card statement. In fact, the world is seeing a recessionary phase right now because people chose to spend more than they earned. People chose to buy what they could not afford to pay for, with the money they did not have. This trend is often blamed on excessive consumerism. But, if you observe it truthfully, it is just a matter of self-discipline. This created immense disturbance in the world. This could create immense disturbance in your life and in your wealth creation plans.
Understand Money Language
Money needs to be understood. Most people never understand the basics of money and then they wonder why it never gels well with them. Financial language is different. Even if you are not a student of finance or economics knowing some simple terms like net worth, assets, liabilities, investment, liquidity, bearish and bullish markets, simple and compound interests, etc is a good idea. Remember, money is used by all, so it is important to know how it operates. Only when you know the language of money you can know and understand what it says to you.
Invest Some Portion of your Income Regularly
It is very important to invest some portion of your income regularly. Investments pay off in the times when there is reduction in your regular income. This is also a matter of self-discipline and a lot of people falter in this rule. Understand the power of compounding and learn to invest wisely. There are several places where good investment strategies can be learnt. Remember, the best teachers are those who are already successful in what you are trying to do. So, it is good to learn money investment and management skills from established tutors and investors, rather than learning them from your neighbours, friends and relatives, who may be themselves struggling.
Increase Assets and Reduce Liabilities
Always think in terms of increasing your assets and reducing your liabilities. Assets are the ones, which bring money into your account. Liabilities are the ones, which take money out of your account. So, before buying an expensive car understand that it shall incur you continuous expenditure, hence it is a liability; while if you buy a house you can put it on rent and start earning regular income out of it. If you have more of liabilities and less of assets, chances are that you are in debt. Make a plan to clear your debts by increasing your income and your assets.
These golden rules of wealth creation if followed religiously will definitely bring you wealth and prosperity. You just need to have the conviction to stay consistent in your efforts.