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Wealth Creation: Important Truths
In June of 2011, Forbes.com featured an interesting contribution from writers Yaron Brook and Don Watkins. In this article, the subject of wealth as an expanding entity rather than a concrete number was examined. The full text of the article can be found here. Essentially, the argument was made that consumers generally view wealth as a massive pie. When someone, like billionaire Bill Gates, cuts out a large slice of that pie with all his wealth, many people believe that leaves less wealth for the rest of us. This, however, is not true.
Instead of a pie, it's more accurate to think of wealth as a river. The river is constantly flowing and people step up to the banks to scoop out their portions. Even though some of that wealth has been removed from the river, it is replaced by an external source. So, if Bill Gates backs a semi-truck up to the river and pumps out gallons of water, you'll see how much was removed by looking at his truck. However, if you look back at the river, you'll also see that there is just as much wealth for grabs than there was before he started pumping.
This is, of course, a flawed metaphor, but the idea is valid. Instead of thinking of wealth as a commodity that must be split amongst the masses, think of wealth as a living organism that can work on your behalf. If you want to create wealth, you just have to step into the water. Wealth creation is a goal of many people, but few know just how to get started creating the wealth they need. Here, we'll explain some tips for wealth creation as well as important truths that every entrepreneur needs to know.
What is Wealth Really?
Wealth is often confused with money, but they are not the same thing. Money only has value for those who need money. Wealth, on the other hand, always has value to the person who owns it. Wealth can include non-monetary things like:
2. Real Estate
These are just a few ways to reconsider the topic of wealth. If you lived in the middle of the desert, miles away from any civilization, a bundle of hundred dollar bills wouldn't get you very much. If, however, you had an endless supply of food and water and an air conditioner, you could be considered wealthy. Wealth is simply an abundance of the things you need to survive and prosper. When you think about wealth creation, therefore, don't think about making money. That is a limitation. Think, instead, about getting the things you need to prosper.
How to Start Creating Wealth
There are thousands and thousands of ways to create wealth for yourself. The most natural way, however, involves a system of trading goods and services. This is the way that people have generated wealth for centuries. If you have something that other people want, you can trade that "something" for a commodity that you need. If what you have is rarer than what others have, you can trade your "something" for a lot more of what other people own.
That's a little confusing, so let's break it down. A professional baseball player has a talent that is quite rare in comparison to the talents of the general public. It takes a special person and years of training to develop the skills necessary to keep millions of people entertained. Because the skills of a professional baseball player are a rare commodity, they receive ample compensation from those who are willing to pay top dollar for this skill.
What's Your Wealth Creation Skill?
If you want to generate wealth, you have to first determine what your wealth creation skill is. Perhaps you are great at writing original content. Maybe you have a knack for guessing popular trends. Maybe you are a great baker, singer, analyst, or communicator. In order to generate wealth, you have to prepare yourself to offer a commodity to your customers.
Set Realistic Expectations
One thing that can seriously get in the way of wealth creation is a system of expectations that are unrealistic. Many consumers look at folks like Bill Gates or Donald Trump and wonder when they will ever be that wealthy. Instead, it's important to focus on the here and now in your own personal wealth journey. Start small and set reasonable goals for yourself. As long as you continue to grow your profits at a regular rate, you will be able to expand your influence, and your profits will grow exponentially.
Wealth creation doesn't have to be an unreachable dream. It simply requires people to understand the truth about wealth. Wealth isn't money. It can't disappear. If you invest time and money into providing a high quality commodity to the public, you are creating wealth.