Generating Wealth - Formula To Success
Everybody says, if only I made a little more money, I would be
better off. They think that an increase in their income would
make their lives less shabby than it is today. What that 'little
more money,' they would be able to afford better food, better
clothing, better everythings!
Unfortunately, people seem to associate 'making more money' with
wealth. A person making $12,000 dollars a month seems to be
wealthier than one who makes $10,000 a month. And why not? This
person has a $2000 advantage over the latter! Isn't he sure to
be deemed wealthier?
The answer is no. A person might be making a lot more money than
others, but that doesn't mean he or she is wealthy. What?
Unbelievable? Stay tuned for the answers as to why!
What is Wealth? Wealth pertains to money and property. Being
wealthy means you have an abundance of objects of value. These
things may be houses, land, bank accounts, cash, jewelry, and
other valuable objects.
When people think of wealth they usually think of stockpiles of
gold and silver and the ability to waste money without remorse
because they have so much of an abundance of it, it doesn't
matter.
This could not be more wrong. This is not the proper definition
of wealth.
The keyword in the meaning of wealth is the word abundance.
Abundance means you have more than enough. And yes, of course,
this is what we all want to achieve. But unlike what most people
desire, it does not mean you can spend without remorse.
Back to the Question You might still be stumped as to why the
man earning $12,000 might not be as wealthy as the man who earns
$10,000. Here's why:
Since wealth is the abundance of objects of value. The more
objects of value you have, the wealthier you are right? Now the
question is, does a bigger paycheck guarantee more wealth?
The answer is no.
The man who makes $12,000 may take home a bigger paycheck. But
what if he spends more than that amount per month? Would he be
able to create that abundance he so sorely seeks? And the man
who makes $10,000 per month, what if he only spends $5,000 of
that per month, would he have surplus at months end?
That is the secret of wealth: Never spend beyond your means.
Save, save and save. Remember the old adage? - A penny saved is
a penny earned? That has rung true even from the earliest days.
Everyone can become wealthy, if they would stick to this single
most important idea.
The problem with most people is that money is power. And the
more money they have, the more inclined they are to throw it
away. If this is how you are thinking, stop! Check back with the
previous paragraph and reflect anew. Always remember that
thought because without a proper spending plan, there can be no
wealth.
How Do I Do That? Always have a spending plan. Take note of
expected income and tally this against prospective expenditures.
How much is the gap. If there is no gap or if the expenditures
exceed the income, you are in deep trouble. You will want to
rearrange your spending patterns if this is the case.
There is no shame in tightening the belt. If your goals include
the future, you must prepare for it today.
Remember that the larger the difference between the income and
the expenditure, the larger the wealth that can be generated.
This is the secret of wealth.
A Wealthier You That was simple wasn't it? If it was that
simple, why doesn't everybody do it? The answer is: because it
takes a great deal of patience and self-control to live within
your means.
Most people are victims of their spending desires. That
difference between wealthy people and those who are not is not
the difference in their bank accounts but the difference in
their attitudes towards spending. If you can hold today for a
better tomorrow, wealth is on its way!
So plan your future today! Spend within your means! Choose those
that are important and tell yourself, "I don't really need this
right now" if they are not. Make a spending plan and watch your
coffers grow!