True, hard work is a key for getting wealthy. But there’s a lot more to it. Creating wealth and enjoying high net worth doesn’t result from pure luck. It takes a certain mindset and strong action.
In essence, you will create luck for wealth with due diligence and courage to make the right choices.
Instead of fantasizing about winning the lottery – a pipe dream for the majority of people – understand that getting rich schemes are just that – schemes to go nowhere.
You have to learn, think and act differently.
Following are seven proven ways to create wealth.
Each of the seven tips below cites a maxim or moral from an author, T. Harv Eker, who wrote the book: “Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth.”
Here are seven Biz Coach steps:
1. Make the commitment to think and act like a financially successful person.
Decide you want the mindset of a successful person. Don’t think and act like a victim.
Many poor people are frustrated because they’re negative thinkers.
Without realizing it, they’re on perennial pity pots. They don’t think big, they think small.
So learn the basics about money. It’s not difficult to learn. But it takes an aspiration to learn.
Read books by authors who have great ideas but don’t buy additional products those who try to sell you on buying stuff from them, such as paying to attend seminars or workshops. In my view, it’s just marketing puffery.
Also, read biographies and autobiographies of successful people. It doesn’t matter if they’re in different industries than you – the principles are transferrable and are applicable for your goals.
Next, walk the talk.
Moral: “Rich people believe ‘I create my life’. Poor people believe ‘Life happens to me’.”
2. Understand the power of compound interest.
You’ll reap big rewards if you understand how compound interest works. The Merriam-Webster dictionary defines compound interest as “interest paid on the original amount of money and on the interest it has already earned.”
So when you save money or invest properly, you earn interest. If managed properly you can earn interest on that interest. If you start early enough, you will build a fortune.
Moral: “Rich people play the money game to win. Poor people play the money game to not lose.”
Instead of fantasizing about winning the lottery – a pipe dream for the majority of people – understand that getting rich schemes are just that – schemes to go nowhere.
3. Live frugally.
People are unsuccessful if they fail to live below their means. They live paycheck to paycheck. Worse, even when they earn more money, they spend more.
Business owners can expense a lot of items that working people can’t. But that’s a benefit of entrepreneurism.
Save money regularly (and invest in yourself – via a diverse portfolio of healthy bonds, stocks and real estate).
Moral: “Rich people manage their money well. Poor people mismanage their money well.”
4. Make health a top goal.
There’s a correlation, too, between being healthy and your capacity to make money. So budget your time for recreation and exercise. Practice healthy eating. Get dental and physical checkups regularly.
This will be fuel for energy in thought and action. You’ll need good health to be bold and strong.
In fact, taking steps for good mental and physical health are part of the five morning habits of winning entrepreneurs.
Pressures don’t have to turn into stress. Most illnesses are psychosomatic.
Mental stress leads to fear and physical maladies. An acronym for fear is FEAR = frantic effort to avoid responsibility. You owe it to yourself to be bold.
Moral: “Rich people act in spite of fear. Poor people let fear stop them.”
5. Develop multiple-revenue streams to acquire assets, not white elephants.
A white elephant is something of questionable value and is costly to maintain. An asset is an investment in solid bonds, stocks and income-producing real estate.
To acquire good assets, develop a diversified portfolio of multiple-revenue streams. Take a page from Donald Trump’s playbook.
His financial disclosures to the Federal Elections Commission as a 2016 presidential candidate indicated his net worth was $10 billion. He listed 487 sources of income – from his speaking fees to Trump Carousel, LLC, which is the carousel in New York City’s Central Park.
Moral: “Rich people have their money work hard for them. Poor people work hard for their money.”
6. Surround yourself with positive people, including a partner.
If you surround yourself with negative people, it’ll be like being isolated in an emotional prison.
Choose a partner carefully. Supportive, like-minded spouses are vital for success. Read about important research in Proof Positive: How Supportive Spouses Help in Work-Related Stress.
Furthermore, your spouse’s attitude has an indirect, powerful impact on whether you succeed in your career, according to this study.
Moral: “Rich people associate with positive, successful people. Poor people associate with negative or unsuccessful people.”
7. Fine-tune your approach with continuous learning.
Never stop learning. Continue to learn about finance and accounting principles, as well as new growth opportunities. In this way, you’ll continue to achieve in increasing your income.
Never stop learning about your assets, either. Monitor them closely. That’s your “job.”
Moral: “Rich people constantly learn and grow. Poor people think they already know.”
From the Coach’s Corner, here are editor’s picks for relevant reading:
Checklist to Build Self Confidence for Career Success — Everybody occasionally struggles with self confidence. But some people have continuing low self esteem. Their lack of confidence serves as a big obstacle.
6 Keys for Successfully Launching a Business Startup — Stressful economy or not, it’s possible to successfully start a new business. Many entrepreneu rs launch their small business with big ideas. Certainly, the business and the owner are synonymous – everything is based on the person’s personality. At the minimum, there are six key questions to ask yourself.
16 Desirable Mental Approaches for Entrepreneurial Success — Humor me, as I recall a great sports metaphor for business. The greatest switch-hitting slugger in baseball history – Hall of Famer Mickey Mantle – was at his best in clutch World Series action. He set several World Series records – 18 home runs, 40 RBIs, 42 walks, 26 extra-base hits and 123 total bases. Before the term “walk-0ff home run” was used, he had 13 game-winning homers.
“Rich people focus on opportunities. Poor people focus on obstacles.”
-T. Harv Eker
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