THE KEPT SECRET OF WEALTH CREATION Part 1

It’s fascinating how the word wealth has different meaning to different people. For lots of people, wealth represent greed and exploitation while for very few people it is a power to create a meaningful life and a comfortable living. The interesting thing about people with the wrong concept of wealth is that this same wealth is what they spent their lives pursuing. Lets us define the meaning of the word wealth. The word wealth simply means abundance. This world was created with abundance of all things that man will forever need. The key to wealth creation is finding a way to connect to the bountifulness of all things that already is.

One major hindrance to wealth creation is the mind set of scarcity. The world is created with bountiful supply of all things but unfortunately somewhere along the line, majority of people have come to believe that there are not enough to go round. And to some people their hold back to enjoying wealth is that they don’t think they are entitle to abundance and that having ‘excess’ is a bad thing. Life is abundant in every way. The belief that there is scarcity is what creates the experience of scarcity for so many people. The secret of creating wealth is to realize that what you want is already available to you.

People are looking everywhere for the master key to creating wealth but sadly they are looking in the wrong places. The real resources are within you. The wealth you can see first within you through your mind, you will never experience no matter what you do. Wealth is not something you get but something you connect to. Listen to me, right now everything you need is already available to you. All you will ever need and beyond is already around you. All that is require of you is to change your wrong belief system about wealth and start creating wealth

When you change your mindset from the belief of scarcity to abundance, you start connecting to prosperity and possibilities that are around you all the time. The discovery of the fact that the real resources are resident on your inside makes the outside resources to start showing up. William James, the eminent philosopher and psychologist, once observed that “The greatest discovery of our age has been that we, by changing the inner aspects of our thinking, can change the outer aspects of our lives.” See you at the top

THE KEPT SECRET OF WEALTH CREATION Part 2

In my last article, we are able to establish the fact that everything we need to create wealth is already within every man. Another important key to wealth creation is creating value. It is high time for you to understand that wealth is not something that is distributed randomly by a god somewhere to a few chosen people, NO!. In your quest for creating wealth, you have to learn and understand ways value is created. This is fundamental to wealth creation.

You have to create something of value for others. Something that will solve people’s problem. Creating wealth is simply creating solutions to a certain problems for people. This is the fundamental of wealth creation.

Money is nothing but a medium of exchange for value. The level of wealth you will create is determined by the values you are able to create. This is the foundation of creating wealth. Business or individual will make more money when they find ways adding value to other people.

The amount of money and wealth in your life is a direct reflection of the value that you add to life. There are two ways to creating value. This is either through the creation of goods or services to meet the needs of others. For example the invention of Microsoft software has unbelievably transformed every aspect of our lives and this product has brought massive wealth to the founder of Microsoft.

There is no magic formula to the creation of wealth. In my next article, I will be exploring another vital secret of wealth creation.

THE KEPT SECRET OF WEALTH CREATION Part 3

Creating wealth through the creation of value brings us to a very salient point that is the power point of value creation. Listen, friend every man is unique in so many ways and this enables every man to do certain things that many others can not do. One of the ways you can genuinely add value to life is through the use of your unique ability to serve other people. One vital law in the market place is called the law or rarity. Your developed ability or talent is one vital way you can use to create wealth.

It is not enough to discover your ability or talent but more importantly to develop it to the point where it can become a valuable commodity. The development of your talent requires constant practice. It is the failure of practice that has kept many talented people poor. The secret of successful men is practice with consistency.

Every great man or woman in business or sport has one secret, it is repetition. My friend, you don’t get anywhere in life until you push yourself and work your talent into a commercial value. This is the passport to creating wealth without much stress .When you align yourself with your design or make up as an individual, creating wealth becomes a play time for you.

Every man is greatly endowed.But your endownment become a wealth generating asset only when you decide to take it from the realm of potential to the point of power.See you at the top

The Four Levels of Wealth

There are basically four levels of wealth you must aim to attain.

Level 1: Financial Stability

The first level of wealth is known as financial stability. This is the most basic level of wealth that you must first attain.
You have achieved Financial Stability when:

1. You have accumulated enough liquid assets to cover your current expenses for a minimum of six months.

2. In addition, you have life and hospitalization insurance to protect you and/or your family's lifestyle should you be permanently disabled, unable to work or if you pass away suddenly.

When you have attained this first level, you will have the peace of mind that should any unexpected challenges befall you (like retrenchment, business failure, pay cut, death or disability), you and your family's lifestyle will not be compromised. Or worse, you or your family will not slide into debt.

Once you have achieved this, you must then aim to achieve:

Level 2: Financial Security

You have achieved Financial Security when you have through the investment of time, money and ideas, accumulated a critical amount of Positive Cash Flow Assets that generate enough passive income to cover your MOST BASIC expenses.

In other words, when you reach this level, you can stop working and maintain a very basic lifestyle. It also means that if you continue working, all your active income can be channeled towards your investments and this will further compound your assets and increase your income streams.

Of course, we shouldn't be satisfied at being at this level. Once accomplished, you must then aim to go for:

Level 3: Financial Freedom

Many of us have heard of the dream of achieving financial freedom but what does it really mean? Well, Financial Freedom is when you have through the investment of time, money and ideas, accumulated a critical amount of Positive Cash Flow Assets that generate enough passive income to sustain your CURRENT LIFESTYLE.

When you reach this level of Financial Freedom, you can choose to stop working and still maintain your current standard of living indefinitely! In reality, most people who achieve financial freedom love their work so much that they continue working not because they have to, but because they choose to. I can tell you from personal experience that it is a great feeling to have, being free of financial pressure & worries and working purely out of passion!

Obviously, the more expenses you have now, the more luxurious and indulgent your standard of living, the longer it will take for you to achieve financial freedom. So besides increasing your passive income, reducing your unnecessary/frivolous expenses will accelerate your way towards this fourth level. Finally, you must aim to achieve:

Level 4: Financial Abundance

So what is the ultimate level of wealth you can achieve? Financial Abundance is when you have through the investment of time, money and ideas, accumulated a critical amount of Positive Cash Flow Assets that generate enough passive income to sustain your DESIRED LIFESTYLE.

Your desired lifestyle is the amount of monthly expenses it will take for you to live the life of your dreams. This is totally subjective depending on the lifestyle that you desire.

If your desired lifestyle is to live in a 20,000 square-feet bungalow with a swimming pool, send your kids to the best schools and drive a Mercedes Benz S-Class, then you could be looking at a monthly lifestyle that'll cost a cool $50,000. Of course the more luxurious your desired lifestyle, the longer it will take for you to achieve financial abundance.

The moment you reach the level of Financial Abundance, you will be able to choose to stop working and live your dream lifestyle indefinitely.

Again, most people who do reach this level usually love what they do so much that they keep on working for fun, channeling 100% of their active income towards charitable causes and further compounding their wealth.

With the right strategies and plans in place, you too will be able to achieve this ultimate level of wealth

Source:www.Articlestreet.com

The Biggest Lie Ever Told About Wealth

Why is it that 90% of the population find it so difficult to become rich? It is because all of us have been told the greatest lie of all, the lie that has been keeping us from becoming rich. Before you can ever become wealthy, you must first discover the truth about wealth and remove the wool that has been pulled over your eyes for way too long.

Let me start off by asking you to do a simple exercise. I would like you to close your eyes and picture a millionaire in your mind. Picture the clothes the person is wearing, the car he drives, how he spends his money, how he spends his day and how he dines. Go ahead and do this NOW before you go onto the next paragraph.

Well, what picture came into your mind?

If you are like most people, you would have pictured a millionaire as someone who wears the latest, branded clothes, who drives the newest luxury car model, who spends lavishly, who dines in fine restaurants and spends on the priciest, choicest dishes and most superb wines.

You may have imagined someone who is relaxing in a cushy leather upholstered armchair in his mansion or yacht, puffing on his Havana cigar. Why is this so?

It's because of the way we have been brainwashed by television and movies to think this is the way millionaires live and spend their money. It is precisely these beliefs and habits that actually keep us from becoming wealthy!

The truth is that very few self-made millionaires live this way. In fact, the only ones who do live this indolent, self-indulgent lifestyle are the minority of millionaires who either inherited all their wealth or who made their money through sports or entertainment.

And all of them usually have one thing in common. They inevitably end up losing everything within ten years. Their wealth is only temporary. Look at Mike Tyson, Michael Jackson, Bobby Brown and a whole list of other celebrities who made hundreds of millions within their careers. They are either all broke or heavily in debt today.

In the New York Times Best-Selling book 'The Millionaire Next Door', Thomas J. Stanley interviewed 300 self-made American millionaires to find out how they think, how they earn their money and how they spend their wealth. What he discovered was a shocking revelation that made his book an instant best-seller.

It was discovered that many people who had high paying jobs, drove the latest luxury cars and wore the latest designer clothes and who appeared to be have millions to spend, were usually broke with a low personal net worth. Most of these professionals and senior executives of multi-national companies were what he termed 'Under Accumulators of Wealth (UAW)'.

In contrast, those who were actual millionaires (that is those with a net worth of over US$1 million) lived very frugally and well below their means. Eighty-percent of them were born poor or from middle class families.

They wore inexpensive suits and never bought a watch that cost more than S$500. Most of them drove secondhand cars, never bought the latest models of vehicles and they usually invested a minimum of 20% of their income in the stock market or private businesses. He termed these people 'Prodigious Accumulators of Wealth (PAW)'.

So if creating a million dollar fortune is what you're aiming for, do what the actual millionaires do and you will accumulate wealth faster than the big spenders ever do।

सोर्स:www.articlestreet.com

The True Definition of Wealth

Before you can be truly wealthy, you must first know what wealth really means. Again, many people think that a person's wealth is defined by how much he earns, by the clothes he wears, by the house he lives in and by the way he lives. We now know that this is not at all true.


A person's wealth is actually defined by how long a period of time he/she can sustain their lifestyle if they stop working. The longer you can go on living your life without working another day, the richer you actually are. Your wealth is therefore defined by three things: 1) your monthly expenses, 2) your liquid assets and 3) your passive income.


Your liquid assets refer to how much cash or cash equivalents (like stocks, bonds & fixed deposits) you have to pay for your monthly expenses. Your passive income refers to income that you will continue to receive even after you stop working. This could include interest, dividends, royalties and profits from a business.


Let's look at an example. Steve is a director in a multi-national company and earns a $20,000 monthly salary.


He lives a lavish lifestyle that results in personal and household expenses a month of $18,000. He hasn't really saved much over the years as he has spent any surplus upgrading his house and car. His liquid assets are just under $18,000. Besides his full time job, he has no other sources of income. What is Steve's level of wealth?


Well, if he stops working today, his $18,000 will last him for just a month. So his wealth is one month's salary. As you can see, wealth is defined not by the absolute amount of dollars, but by time.


On the other hand, Susan, a marketing manager in a retail store earns a monthly salary of $5,000 a month but she is much wealthier than Steve. How is this so?


Well, over the last 20 years, Susan has diligently saved 20% of her income and invested it in the right stocks and mutual funds that have given her returns of 15% per year. (You are going to learn how to achieve this return with minimal risk in the later chapters).


Over the years, Susan's liquid assets have grown to $1.32 million (you can verify this with a financial calculator).


In addition, she has spent her free time building up a home-based business that sells unique collectibles over the Internet. Her small business earns her an additional income of $1300 a month. She may not drive a fancy car or wear a Cartier watch, but let's see what her wealth is.


If Susan were to stop working today, she would still retain the $1,300 monthly passive income that her home-based business earns her. Since her monthly expenses total $4,000 a month (80% of her income), she would have a net outflow of $3,700 a month.


With her $1.32 million in accumulated savings, she would be able to survive for 30 years! (This is assuming that she does not invest the $1.32 million she has prudently saved up!).


If Susan were to put her $1.32 million into a risk-free fixed deposit account earning interest of 4%, it would bring her an additional interest of $52,800 per annum.


This means another source of passive income that rakes in $4,400 a month. So you can see how Susan can very comfortably go on forever without working another day in her life!
Can you now see that your wealth (i.e net worth) is not determined by how much you earn, rather, it is determined by how much you save and wisely invest. Even with just a middle class income, you could become a millionaire if you have enough financial intelligence, discipline and patience.


सोर्स:
www.articlestreet.com

Utilizing Unique Abilities Creates Wealth

Everyone has unique abilities that they could use to further there financial freedom. Actually by utilizing their unique abilities they increase there ability to create wealth.

One of the hardest things people have is finding there own unique abilities. Peoples' unique abilities are difficult to pin point for three main reasons.

One: People are really good at there unique ability and so they don't recognize them as unique. They will often say to themselves, "If I can do it, everyone must be able to." In realty most people can't do it as well as they can because those people have different talents.

Two: Often what people are good at are what they have the most fun doing. In today's society, fun is not related to work. So, they don't think their hobbies are anything special, it is just a way to enjoy life. A lot of peoples' unique abilities are simply hobbies in there life.

Three: Chances are people have been doing there unique abilities automatically there whole life. This makes it difficult to see what they are good at, because it becomes normal for them. They are doing it right now and they have always done it.

The sad case is most people tap into their unique abilities a little bit, but they don't ever fully develop them. Thus they don't ever fully develop their potential.

Imagine a life where you are doing what you love to do everyday and getting paid to do it. Think of Michael Jordan. He loved basketball and it was his unique ability to play. For someone that it is not there unique ability to play basketball could probably never play as well as Jordan because they are not going to put there passion in to it.

It has been said that Bill Gates doesn't know that much about computers, but his unique abilities in business building and management made him a billionaire. 

When a people discover their unique abilities, they will excel and utilizing them in the their professions or businesses. Why? Because they will be doing what they love, so they will be passionate about it. Also they are in their element so they will naturally do it better than other people who do not have that unique ability. 

These talents are given to people from God so that people can provide value for the world around them. As they provide value for the world around them they will receive compensation for that value creation.

If people receive money for the amount of value they create, why wouldn't they want to utilize their unique abilities in creating the most amount of value possible?

Some people may be able to do similar things as other people. But no one is exactly the same. So even though there are similarities, no one will do everything exactly the same. That is what makes unique abilities so unique.

source