CREATING WEALTH — part one

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Creating wealth is not just about making money -- think of all the people who have won millions on the lottery and find themselves destitute again within two years!  Becoming wealthy encompasses your mindset and behaviour, the lifestyle you adopt and financial know-how as well as simply making money.

So what's my recipe for getting and staying wealthy? Well, here are a few ideas for you to consider...

Anybody can make money

Money is just a symbol -- it is a concept -- yet it has the potential to create huge problems for people as well as enormous joy.  The truth is, anyone is capable of making money -- a lot of money -- and the only thing that stands in their way is usually the way they think about money, not the actual money itself or the lack of it.

You could argue that you come from a poor background, or that ill health prevents you from making money or any number of other excuses for why you are not currently wealthy.  But the truth is that people regularly overcome the most staggering adversity in their quest to become wealthy.  It depends on how badly you want it and how much effort you are prepared to put into it (and I don't mean hard physical work).  You may have a few erroneous beliefs -- maybe you don't believe you deserve to be rich or think that your family won’t approve if you become rich -- and it is vital that you work on yourself to get rid of these beliefs because they are holding you back.

The truth is, we all have the same right to make money as anyone else and opportunities abound for everyone in the privileged western world to make as much money as they want...

Decide how wealthy you want to be!

We all have the power and the opportunity to be wealthy, but exactly how wealthy do you want to be?  If you have a goal to simply ‘make more money’, then you do not have a defined goal for your brain to work on!  If you have a specific target in mind -- say you want to make £100,000 in the next two years -- then your subconscious will help you find a way to achieve this.  Make sure your goals for making money are explicit and unambiguous -- you must know exactly what you want before you can set about getting it!

You also need to be able to visualise your intended wealth, so that it becomes a tangible goal -- imagine in precise detail how your life will be when you are wealthy.  What sort of house will you live in? What sort of car will you drive? What sort of holidays will you take, and so on -- bring your aspirations to life and practice being wealthy in your mind!  Great athletes, as well as great entrepreneurs visualise their success in great detail way before it happens.

Create a plan

To get wealthy, you need a plan -- a roadmap that you can follow to get you where you want to be.  Because it is far too easy to get sidetracked, it is vital that you define your goals specifically. To do this you need to know what being rich means to you, how wealthy you want to be and exactly how you intend to get there.

Set out your objectives; how much money you’re going to make, how you're going to do it and how long it's going to take.  For example, ’I will make £100,000 by next Christmas by selling 50 products per month.’

Then create your plan to achieve that objective.  You could, for instance, create a powerful new marketing plan for your business, or you could decide to find a business partner to work with you to help you achieve your goal.  You might decide you'll never be able to make £100,000 from your current products and decide to find another way to get wealthy -- at least you find out sooner rather than later.

Once you know what you want and how you're going to get there, you are in a far better position to be able to judge whether your plan is workable -- after all, it has to be realistic and achievable.

Take action!

It may seem obvious but once you have a realistic plan to create wealth, you need to take action in order to achieve your goals.  This is the point at which many people fail to make progress.  It's pointless having a plan if you put it away in a drawer and then do nothing!  You have to actually concentrate, apply yourself and focus on your goals, then take action to achieve them.

The difference between working hard and working effectively

People can work damned hard all their lives and never get rich -- we all know this...  Yet if you want to create wealth, it doesn't matter how ‘hard’ you work because it is crucial that you work effectively if you want to be successful.  This is where your plan comes in.  You have to work smart not hard, and remember that millionaires don't work for an hourly rate!

Money begets money

It's actually true that the rich get richer because money has the capacity to make more money.  Once you start making money, it is amazing how fast you can make it grow.  There are all sorts of ways of doing this, but that is a subject for another time.  Just remember that when you start to make money, you should cream some of it off and set it aside to make more money -- in other words invest it in something that will produce a healthy return.  You can't expect to spend it all and stay wealthy!

More on creating wealth in part two...