Techno Finance and Executive Diary...

Wednesday, November 26, 2008

7 Keys to Creating Wealth

What the financially challenged don't know…

1. They don't know how to get into the money flow. The crucial distinction between sportsmen and spectators is not that the sportsmen play and the spectators watch; it's that sportsmen get paid, while spectators pay!

To get paid you need to be inside the lines, on the field of play. As long as you're the one settling debts, you're a spectator. You're investing in someone else's game.

2. They don't know how to create value. To get into the money flow means creating value, and value is created automatically when you're in your own flow, when you're doing what comes naturally to you.

Warren Buffet is in his flow - buying undervalued stocks. He has an eye for spotting opportunities in great business opportunities, which he buys. He has become second richest person in the world.

Donald Trump is in his flow buying and selling property. He has an eye for spotting opportunities in buildings, which he buys and sells. He has become one of the biggest property tycoons in America.

3. They don't know the difference between good debt and bad. When you buy a luxury car or a fancy electronic gadget, you're buying a liability. Any purchase that does not put cash in your pocket is a liability.

Good debt buys assets that bring in cash. If you take a loan to buy an apartment building that will produce revenue, that's good debt. You can also borrow against your mortgage to acquire more assets.

4. They don't know how Rs100 saved can be turned into Rs1000 invested. When you're spending everything you earn just to survive and pay off debt, you normally think you don't have much left to save.

But the truth is you don't need loads of cash to start saving, a few hundreds saved can be used to raise finance to buy an asset that will generate thousands. You can start with as little as Rs1000.

5. They don't know how to use other people's resources. Take a look at any wealthy or successful person. Are they operating alone, or do they have a team of supporters?

The gung-ho, lone-ranger approach simply does not work. The first step to getting on to the field is putting the right team together. You don't have to know how to do everything, you only have to know who can do it for you.This is a key to your success.Have an asssociation with the right team of mentors,advisors, partners & workers.

6. They don't know how to control their emotions. Starting your own business is risky. So is any investment. The single most important factor is not knowledge, but being able to manage your own emotions.

Most people don't invest or don't start their own business or manage an investment, not because they don't know how, but because they're afraid. which leads to errors of judgment. Emotional maturity is absolutely crucial.

7. They don't know why they want to be rich. Most people just have a vague idea that they'd like to be rich. They don't know why. They don't know what they'd do with it once they get it. If you don't have a good enough reason you should find one now.

Hope you found this article useful.

Labels: Business Lessons, Consulting, Stock Market

Posted by "CPerformance" :: 10:59 PM :: 0 comments