I'll go into a number of ideas I've come across about how to build real wealth in almost any industry. There is a real science to building wealth and I'll uncover some key principles on how to do so in the following paragraphs.
First and foremost, I want to quote an unknown author who said "the more you learn, the more you earn". This is common sense as most of us know that knowledge is power. However, I'd like to add something else I learned on a forum a couple of weeks ago and this principle is that "applied knowledge is power". This means that if you actually apply and implement that which you are learning, you will earn more and gain power... but the opposite is also true... if you never apply anything you learn, you will not build any wealth... that knowledge you have gain but not acted on is useless without massive action.
Second, I want to mention the importance of modeling other people's success. This is a simple process. In our example, we're talking about wealth, right? So, if you want to build real wealth, what you should be doing is studying people who have already built massive wealth for themselves and start to imitate their actions, their thinking, and their strategies. Modeling is a concept that Tony Robbins has spoken about and it really is powerful.
Third, I'd like to discuss a few ideas I learned from Donald Trump in a show on CNBC called The Billionaire Inside. On this show, he discusses how to build real wealth. One of the first things he said is that his father never sat him down and talked to him about how to become successful but instead, Donald Trump watched his fathers' actions(actions are louder than words) and learned through observation the way he should act if he wants to be successful. This is a perfect example of modeling other people's success. He also says that if you have a problem with someone in business or in life, you have to go after them to show to that person and the world that "you don't take crap" from anyone. Also, mindset is crucial in his opinion. He suggests you have to have a positive attitude about yourself and you also need to get out there and make it happen. Someone asked him if it was too late at 37 to become successful. Trump answered that it is never too late. That's so important to remember. Whether you're still in your teens or retired, it's never too late to become successful whether in building wealth or anything else in life. To become successful, he suggests you need to keep going. In other words, never give up. Another important point he makes is that you have to love what you're doing.
One other idea I wanted to touch on is that a great way to build wealth for most people is through buying a home for themselves. David Bach said in his book called The Automatic Millionaire that you're not in the game of building wealth until you get into real estate. Although I don't entirely agree with everything David Bach has to say, I do believe that real estate like buying your principal residence is a great way to build wealth.
I remembered something that Robert Kiyosaki said in his famous book Rich Dad, Poor Dad. He doesn't believe that your house is an asset because it actually takes money out of your pocket and his definition of an asset is something that puts money into your pocket. So, I just wanted to give you another opinion about real estate. In Robert Kiyosaki's opinion, the path to wealth is buying and building assets that produce you income whether it's through real estate, internet marketing, or business.
Another important point I want to make is that if you want to get really rich, you should think of leveraging your time to earn more money for your hard work. I'm sure you've heard about this before but people who trade their time for money are suckers. Instead, you should be building systems that generate you money whether you are working or not. That's what I mean by leveraging your time. Think automated businesses for example.
Here are some more tips I've stumbled on... First, you need a financial plan. Make sure it's written down on paper instead of just in your head. You could also maximize your retirement savings. Now, I don't want to suggest you start penny-pinching... but you should be aware of where your money is flowing too. Sometimes, we unconsciously waste money by eating out too often for example. You have to track your spending if you want to start saving some more money. I got the ideas in this paragraph from a free video that I found on money.msn.com. The last idea they suggested is that you should take advantage of the fact that many employers will match your retirement contributions. "You won't be offered free money often in life" is the way they put it. I thought this was pretty funny but it's so true. Another great idea is to start reading personal finance books or personal finance websites to get an idea of how to improve your finances. Remember, applied knowledge is power.
Remember that most people are spending just as fast as they are earning. It's so important to SAVE MONEY. But it's not as simple as that. You have to make a habit out of saving and then INVESTING that money. Your money will just erode with inflation if you hide it under your bed. So, learn about intelligent investment strategies and INVEST that money!
Now, even though I haven't talked about it much yet in this article, I want to focus on an important fact that I've discovered over the years. First of all, the amount of money you have in this world is directly connected to your mindset. So, you need to improve your mindset if you want to build real wealth. Second, like I mentioned earlier, you should be building streams of passive income if you want real wealth. This is when you build systems that generate you money like I said before. These streams of income will continue to generate you passive income whether you are working on them or not. Sure, they often need some maintenance, but sometimes they need nearly 0 maintenance.