“At least eighty percent of millionaires are self-made. That is, they started with nothing but ambition and energy, the same way most of us start.”
– Brian Tracy
Wealth creation begins when you recognise that accurate and current information is more valuable than money. The overall teaching of the book of Proverbs is that knowledge (information), understanding, (explanation) and wisdom (application) are more valuable than any material possessions or positions of prominence and should be sought after with more diligence and with greater desire. The information should then be deposited in the bank of your mind so that you become intellectually rich and financially sophisticated. You can then draw upon this bank of ideas and information at anytime to create or advance opportunities to get wealth. Knowledge, understanding and wisdom are the true riches and when invested in the bank of your mind yield lasting dividends and permanent benefits.
1. Your mind is a money magnet
Your mind is undoubtedly your most valuable asset in life. Don’t lose it! Don’t waste it! Don’t neglect it! Instead, make it rich and fat with the information and wisdom necessary to excel in the business of life. This means making a commitment to becoming financially intelligent. Your financial increase is inseparably linked to your level of financial intelligence (FI) and is at all times determined by it. In fact your level of financial increase is always a reflection of your level of financial intelligence. Your goal then is to become financially intelligent and astute.
You will need to study the laws of money until you understand them and can implement them to your advantage. Your mind is magnetic and will attract the circumstances, opportunities and connections that are consistent with your predominant thoughts. If you think regularly about wealth creation and study carefully the laws of money until you are economically sophisticated, then the law of attraction will kick in and the right people and opportunities will show up at the right time. When the student is ready, the teacher will appear. If the same people and opportunities find you in financial ignorance, they wouldn’t recognise you and you wouldn’t recognise them. Actually you would walk straight past each other.
2. Who dares wins!
The next pre-requisite for financial success is financial courage. There is no such thing as a risk free investment so if you wait for a risk free opportunity you may wait for it the rest of your life. Your financial success will depend on your ability to take calculated risks. A calculated risk is one that that will probably yield a handsome return on your investment. If the return is not probable then don’t take the risk. Thankfully there are things that you can do to increase the probability of your investment yielding a return i.e. home work. The golden rule is: investigate before you invest. Do your home work; find out as much as you can about the venture and then assess the risk honestly. If you can’t afford to lose the money, don’t invest. But if in all probability you are going to make money, then don’t be a coward; pluck up the financial courage and do it.
3. Attitude determines altitude
The final pre-requisite for financial success is an attitude of abundance. What I am going to say now is a mystery. Those who understand it will quickly excel in the business of life. It is this: Money attracts money and the lack of money repels money. Your job is to cultivate a healthy and wealthy attitude and to eliminate any trace of a poverty stricken mentality. A wealthy attitude attracts money, whilst a poverty stricken mentality repels it. Don’t complain about your circumstance or confess that you are broke or tell any one that you can’t afford it. Instead you should consider yourself as having plenty of money tied up in assets. If this is the case, the only problem you have is with cash flow. Even wealthy people find it difficult at times to get their hands on cash so its ok to be short on cash. Carry yourself with dignity even if you don’t have two pennies to rub together and never see yourself as inferior to the man who has money. The attitude of abundance says, I am rich, the cash is on the way.
The other reason why this is important is because it teaches you another fundamental lesson in the business of life. It is better to be asset rich and cash poor than to be cash rich and asset poor. If you operate today as though you are asset rich and cash poor, you will quickly learn the protocols of the rich. You see wealthy people invest their money in assets. Poor people wear their money in an attempt to look rich. Wealthy people often look poor because they are extremely frugal with their money and consider flash clothes, cars and accessories to be liabilities. Of course they enjoy luxuries but only off the profits of their investments. The sooner you can think like this, the sooner you will be ready for some money. The worst thing that could happen to your personal finances is that money shows up ahead of this mindset. That money will be gone in a heart beat and you’ll have nothing to show for it.