| Eve & Elle Admin
First off, there is a difference between “getting rich” and owning wealth.
To distinguish wealth, let’s make a few things clear;
- You can be making a lot of money, but your spending patterns could be taking away from that vast amount of capital
- “You can get rich quick”, but you can’t “get wealthy quick
So what is wealth? Wealth is the possession of a vast abundance and supply of things of value.
Note that the ownership of these assets or this capital can be shared. It can be a co-ownership, by not just one individual, but of a community, organization or a country.
The value of this wealth is determined by how desirable it is by whomever owns it, or wants to own it in an exchange, like a stock market or selling a house.
What your personal wealth is, includes what you value. This could be a certain type of lifestyle for example, that is rich in family, friends, relationships, freedom to travel, time to do yoga and meditate, a beautiful home, and / or an engaging and interesting job.
Now that you are aware of this different perspective on wealth, you will probably understand that money is just a resource to use, to get more of what you value in life.
1. Seek freedom
If you are looking for comfort, you are settling. Your efforts will be pacified. If you really want wealth, you’ll focus your efforts on attaining so much freedom, that the inflow or access to money will not be dependent on your efforts.
2. Diversify, focus and be in control
You spread risk by diversifying, but you need to focus your attention on a few things. Make sure that you understand what you invest in as well. Whether it is investing your time and energy in setting up your own business and owning shares in that sector that you work in, you are diversified, yet still focused. Also, choose an area that you understand and preferably master. By focusing your energy, you have the economy of scale, and maximize your input. And input is output. It can help to write this down, look it over and add and subtract from this list over time.
3. Hustle different types of income
What happens if you depend on your partner as the only source of income for you both, and your partner loses his or her job. This will not only deplete your bank accounts, it will deplete your important and very valuable resources of health due to stress.To create wealth, make several investments that all create dependable in-flowing sources of income.
4. Stop comparing yourself
If you are constantly looking around you and comparing yourself to others, in competition to have what someone else has you not valuing and appreciating what you have as wealth. Not only that; you are actually destroying your wealth because of your perspective. What you personally value is your personal wealth. The assets that make up that wealth, are different for everyone. By valuing what another has and “wanting” it, you devalue what you have that is already yours to enjoy and could already be enough, as you may have already reached your own personal goal.
|Also read: Achieve your goals. 4 ways to manage your time, 4 Great books to help you reach your goals and Achieve your financial goals in 7 steps and the books that will inspire you.
5. Don't get distracted
Actively investing in volatile markets has been proven again and again to be risky and that investors that take this bumpy ride, do not beat the market, and make far less on the investments that they manage, than steadier, less risky investments.
My hero Warren Buffet, has a net worth of $ 8.36 billion USD (2017 figures). He invests in agricultural machinery companies, soft drink companies, shaving razors, electricity, banks, railroads and insurance. His book is a great read to get to know this topic a bit better.
Slow and steady wins the race.
6. The key is a proven track record
Invest in something or someone, not because they seem nice and you like them. Get hard facts and proof that shows a proven track record of success and consistency. It’s important to separate your feelings from your decision-making process, to ensure a sound investment. Here are some great books on that.
7. Invest only your extras
Pay yourself first, buy putting money away into a savings account. Once some money has accumulated, move that excess amount into low risk investments that pay you more than the interest you would be making on a bank account.
Your money should be working hard for you. The goal is your financial freedom.
8. Don't spend to impress
Decide what really matters to you and spend on that though live the lifestyle that you can afford today. If you are not wealthy yet, do not pretend that you are by spending on things that you can’t afford yet – designer bags, first class plane tickets, sports cars, vacation homes; they will deplete your wealth before it has grown to and perhaps even beyond its full potential.
So the goal is...
Money will not make you happy but an abundance of assets will give you freedom and a tool to get you real wealth in what you value the most; whatever personal format that may be. Are you on your way to creating your personal wealth? Tell us how that is going in a comment below. We value the inspiration - getting to know more about your own personal journey.