There is one question I am always being asked -- how to make money! Well, there is no easy answer and everybody's path to riches will be different, but there are some common threads -- actions to take and habits to adopt that will help you become wealthy. So here are a few tips and guidelines to getting wealthy...
Know where you are now
Before you can even think about getting wealthy, you need to evaluate your current situation. Do you have debts you need to clear? Are you living on your credit card? Can you cut down on your spending? I know everybody groans when they are faced with this job but it really is the first step to getting wealthy -- you have to evaluate your current situation before you can move forward and start making some money. I won't labour the point, because I'm sure you've heard it all before, but you must take control of your spending, reduce your debts and live well within your means if you plan to get and stay wealthy. This is your first priority.
Now we've got that important point out of the way, the next thing to do is have a solid plan -- a roadmap of how you are going to become wealthy. Your plan might involve investing in a business, changing your career, investing money in the stock market, investing in property such as buy to let or property developing or selling something.
The main thing to remember about making money is that you will never become wealthy earning an hourly rate. When you work for somebody else your potential is limited to your salary, which is decided by your employer or you are limited by the fees somebody else is willing to pay you -- you have to do deals and be proactive if you want to become wealthy. You need to sell your products or market your time and your skills in order to become wealthy, and there are plenty of ways you can do this to suit your temperament, your interests and your expertise.
Speculate to accumulate
The majority of wealthy people were not handed their wealth on a plate -- they had to work for it. This means they had to invest time and effort into getting wealthy -- it doesn't necessarily mean you have to invest money. Even someone with no money whatsoever can speculate with their time and energy by planning how they will become wealthy and working towards it. It's called sweat equity.
If you are lucky enough to have some spare money you can speculate with it in order to build wealth in the future -- again you need a solid plan on how you are going to achieve this. Speculating with money is not always guaranteed and they are plenty of stories of entrepreneurs going belly-up after speculating unsuccessfully with their money, so again, my advice is to speculate with your time and energy and most of all your dedication and commitment to your plan. This is how you will create real wealth. After all, if you start with nothing -- you have nothing to lose!
Decide on your level of risk
Somewhere along the continuum of high risk to low risk is a level that you will feel happy with. You have to decide for yourself how much risk you are prepared to take when it comes to speculating with your time, effort or money into a wealth creation plan.
Some people like to take huge risks, and it can be argued that the greater the risk, the greater the reward -- although this is not always the case. Sometimes the greater the risk the more spectacular the fall. On the other hand, the vast majority of people are so averse to taking risks of any kind that they never stick their neck out of their comfort zone -- these people will never create wealth! Somewhere along the line, you have to take some risk.
The main thing is to carefully assess your risk. Base your decisions on things like:
· How much stress you can cope with: Taking risks can bring a great deal of stress and anxiety if you are not comfortable with the level of risk you're taking. Stress can affect your health, your relationships and your ability to work, so only take on the level of stress you can cope with.
· Decide how much you can afford to lose: Don't take a risk that could bankrupt you if it all goes wrong! What's the worst-case scenario? Could you cope if it happened? If you are the sort of person that becomes depressed and is a defeatist when things go wrong, you should take a lesser risk. However, if you tend to bounce back and are positive about setbacks, you can probably afford to take a higher risk. A lot will depend on your personality, the circumstances of your life, your age and your family commitments...
· How much information you have: If you're not sure what you're getting into, your risk is greatly increased, so find out as much as you can about any wealth creation opportunity before you take the plunge.
· Trust your intuition: If something doesn't feel quite right you shouldn't go ahead with it. We all get feelings about people, things and situations, called gut feelings, hunches or intuition which we should use as a guide. Our subconscious generally gives us the right signals when we choose to listen to it, so learn to trust your intuition...
· Spread your risk: Don't put everything into one opportunity. You should spread your risk if you want to create wealth. Better still, create several income streams so that if one or two dry up or don't work out as you expect, then you always have something else to fall back on.