Rules to wealth creation

I have read quite a number of books on wealth creation. But one thing I have come to notice is that they all point to common factors that am going to discuss here.  These rules to wealth creation are not limited to what is discussed here but they are some of the paramount factors that you need to consider if you plan to create wealth.

Take responsibility 

You need to take responsibility of your life. Nobody else can change your situation. The circumstances that you find yourself in today are not anybody else’s fault.

Spend less than your earn 

The little money that you can refrain from spending could go a long way in helping your financial situation get better. Like that coffee that you take out every evening. You can save a lot if you just prepare your own coffee at home.

Know what put money in your pocket and what removes money in your pocket

 You need more things (assets) that put money in your pocket and less of those (liabilities) that remove money from your pocket.

Do not borrow to consume 

Do not borrow money to buy things that would take money away from you. This is like taking you some steps backward. Borrow money to buy assets that will put money in your pocket i.e. take you forward. 

Multiply your resources

Wealth creation is all about the ability to multiply resources. Start with evaluating how you use the resources called time. Do you spend more time doing things that remove money from your pocket or things that put money into your pocket?  Use your time wisely and multiply your knowledge, skills, networks and this will ultimately lead to multiplication of your financial resources.

Know the reason why you want to make money 

Money is a tool to help you achieve the things you want in life, and it is not in itself what you really want. Identify the deeper reason why you want to become wealthy. 

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Keep the right company 

Keep the kind of company that provides an environment that is conducive to wealth creation. The people who complain about being broke all the time are not the right company for you.

Cash flow is the king 

It reaches a point in life where your income moves from being your ability to work 9-5 everyday to your investments. Your investments will need to be generating that income to keep you going. 

It is not about you 

Creating wealth cannot just be about you. A selfish attitude leads to small thinking. When you combine a bigger picture that includes family, community etc. you see things in a whole different perspective. 

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It’s a process not a one-off deal

A huge a mount of money will not fall on your lap one day and sort all your problems out. You will need to get a life changing deal. The process of wealth creation is a choice not a chance. Having a vision as opposed to just focusing on survival. Action not just ideas. Empowerment not creating dependence.

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