Working harder is the only answer for those who don’t know how to be wealthy. They think that working hard solves everything, yet it won’t.
But the primary question is how to build wealth? If you think it is only about luck, then luck only helps those who are prepared.
Those who want to be wealthy have to do two things first:
- Change their way of thinking about what they can’t afford to how they can afford it.
- Educate themselves about what money truly is.
If your first response to lacking something is “I cannot afford it”, then yes, you won’t. Not with that mindset for sure. But, changing your mind to “How can I afford it?” will start the creative mechanisms in your mind to start finding out ways. A lot of people go to rich and ask for a loan, but they never ask for a bit of advice about how to become rich like them, which is usually freely given by those who succeed in life.
Lots of stories out there talking about the success of those who once were poor inspire many. But when they come back home, the same mindset kicks in, and the motivation gets lost. Partly because they don’t know where to start. They always attribute success to hard work and they are working hard but have not become rich yet.
Start simple:
- Pay yourself first. 1/10 of what you earn is yours to keep. Before paying hospitals, stores, and more importantly government, pay yourself first; and use the remaining to pay the rest.
- Ask for advice from those who know the subject. Don’t take advice from accounting advice from a librarian. Find the best accountant and pay them lavishly if necessary as it will still be cheaper than losing all of your money to bad advice.
- Make your money make more money. Your money is an employee of yours. You have to have it work for you and make you more money. This is called an asset. Invest your money.
- Guard your money as what makes difference first is not how much we earn but how much we spend. Know what your liabilities and assets are. Your liabilities are taking money off your pocket. Assets put money into your pocket.
These all come from the book “The richest man of Babylon” by which Kiyosaki was greatly influenced like many millions of others. What keeps people from being wealthy is fear, bad habits, cynicism, laziness, arrogance.
Arrogance is to think what you don’t know is not important.
Laziness is not just about sitting around and doing nothing. Laziness can manifest itself as working hard to avoid choosing the right work and making the right decisions.
But you cannot become wealthy if you don’t how money works. Therefore it is vital to build a foundation in your knowledge. Take finance courses, learn basic accounting, and understand how cash flows. You need to be able to speak the language of money before making it work for you. Otherwise, you will work for it for your entire life.
Money does not matter. What matters is the contract you make by using the money. Your investment is a contract. Your loan is a contract. Your purchases with money are a contract. It is the world of contracts, not money. Money loses its value over time. Inflation kills it. Therefore, you have to make contracts that put your money ahead of inflation or other crisis. Your assets will help you with that.
Live your life, but don’t try to satisfy every desire you have for they cannot be. Hence, no matter what, always pay yourself first and it will give you the energy to move forward.